the united states plays a key role in shaping imf policy through its position as the imf's largest shareholder over the past year, we've supported the creation of an imf debt relief facility for low income countries. hit by public health disasters like the ebola virus. and encouraged the imf to help developing countries mobilize domestic resources for development. at the direction of congress, the united states championed reforms to the exceptional access lending framework to tighten requirements on debt sustainability. our investments in multilateral development banks. like the world bank also support national security objectives. increase economic growth. and reduce poverty. over the years, mdb assistance has nurtured economic reforms. infrastructure and social investments that have driven the growth of some of our most strategic trade partners. as vital partners in helping to address national security threats. in addition to meeting our current commitments, it is urgent we work with congress to address our prior unmet commitments which now approach $1.6 billion. at the world bank, this is p

the imf has been holding out. we hear their the finance minister saying he thinks the eu will put pressure on the imf and there will be some kind of deal. you look at the two-year greek bonds, you see investors sharing optimism. you hear their from the finnish finance minister, they think all of these efforts to solve the refugee crisis in an indirect way will help greece get more assistance to deal with its own problems and we might see an imf troika, quartet mission in athens as early as tomorrow, some of the delegates are telling us. for joiningthanks us. good to see you. bloomberg's ryan chilcote. coming up on "the european close the u.k. referendum draw near. a group of business leaders are showing support for britain leaving the eu. among them, howard shore, chairman and founder of shore capital. he is with us next. ♪ mark: you are watching "the european close." i'm mark barton in new york. there are concerns about the ossibility of the u.k. leaving the eu. there are supporters for the so-called brexit. the

we welcome the secretary for his testimony on the imf and the international financial system. it faces serious challenges brought on by spending driven debt in the monetary policies around the globe. fortunately for hard-working american taxpayers, needed reforms were passed by congress in december even if they weren't reforms the administration wanted. notwithstanding the congress reduced the contribution for the first time in its history sun setting sunsetting over $40 million in the credit lines. congress also be stored restored over the administration's objections a rule that limits of the large loans to countries with unsustainable debt. this was first put into place in 2002 but was altered by the treasury in 2010 when they improperly bailed out of greece, it has led to nothing but additional bailouts. what remains certain for the system though is that the imf will never be able to be allowed the united states if we remain on the current spending trajectory. as the monitors showed the national debt is spinning out of control and is undeniably unsustainable. during the tim

and it's projected by the imf to fall to 6.0 by 2017.what are the implications of a slowdown in china for the united states as well as the global economy more broadly? >> thank you, congresswoman waters. china's economy is one of the the two largest economies in the world along with our own. it is not as integrated in the global economy in the way ours is in terms of financial systems, in terms of the interlocking relationships of those financial institutions. but it is a purchaser of vast amount of inputs from around the world. so there's understandably a lot of focus on china's economy because it has a lot to do with what global growth will look like in the future, particularly an emerging economy as it provides so many inputs to china. china's in the middle of a reform process that is very important to china and it's important to the global economy. as they move towards a more market oriented system, it's going to be bumpier. they'll be more volatility. they'll have to learn how to tolerate some of those disruptions the way those of u

why is the imf saying this? the potential is anonymous, but there's still a way to go in terms of the reform process. forecasts say the country's growth will pick up marginally next year. they are in a recovery based on lower fuel prices. spot,ain in the sweet they must maintain forward momentum. the imf expecting the indian yearmy to grow 5.3% this and 7.5% next year, one of the fastest-growing economies in the world. country has grown to 7.3% in fiscal year 2016. thank you very much indeed. that is it for "trending business". "asia edge" is next. ♪ ♪ from our studios in new york city, this is charlie rose. charlie: his award-winning books include biographies of alexander hamilton. the life of john d rockefeller. "the new york times" has called him as elegant and architect of history as we have seen in decades. his new book is a detailed and vivid portrait of america's first president. >> the starting point in an but his biography is that there are significant dimensions in a life that have eluded previous biog

the imf wants to see results now. also think that given that it is the most expensive debt, they will have a likely nominal role going forward. i do think that this disagreement between institutions to deal with the differences is part of the discussion. joe: all right, thank you very much for joining us. as braziloming up, goes through its worst depression since 1901, traders are piling into brazilian stocks. we explain why next. ♪ scarlet: i'm scarlet fu "what'd you miss?. " traders piling into brazilian stocks. in the brazil cap etf, the ticker there is ewz. the biggest weekly inflow from october of 2014. so, when you look at a bar chart you will see as the fund flows in, anything above the red line, if you pull up my terminal, represents inflow, anything below it represents outflow. right here is what we're looking at. the latest week of inflow on the far right side. $250 million, going all the way back to october of 2014. clearly economist are debating isther the comeback justified. it doesn't matter, investors a

is the imf in the situations a bit of a gatekeeper.me in with alone loan, in exchange for certain policies on behalf of the egyptians. and i can often unlock the doors to other aid agencies providing more aid as well. in hopes that that would boost investor confidence and to perhaps a boost growth as well, and that budget deficit. some ofs artie taken the measures that might be demanded by the imf agreement, such as curbing fuel subsidies. talkinglready been about flexible exchange rates, certainly with the imf loan, egypt may be more disposed to do something like that with the egyptian pound. then would be without it. for now, it is a case of watching the space. anna: elliott got team joining us. editor there. let us bring luke hickmore, senior investment manager at aberdeen. given your focus on credit markets, a really interesting story on bloomberg is morning, talking about goldman sachs advised the client. they are saying policy divergent is back on buried for little while, we have an questioning whether we were really see policy d

i don't think it will be the imf. the conditions for imf and pullman are not there.different issues internally domestically and political issues there will not be solved by the imf. rally in brazilian stocks has a lot to do with the idea that this is a political and economic problem. the politics in order before you fix the economics. the news recently has been a higher probability that the president may get him peach or implicated in the corruption scandals, and the market begins to weigh the possibility that we get a change in government, but it is very speculative at this point and far from the resolution. alix: you wouldn't buy this rally, would you? >> no. scarlet: congress is far too fractured to do much about addressing the budget deficit. >> it is fractured, but it would make for a turn in the politics. again, this is a political and economic situation. anything that improves and politics would help towards repairing the economy. scarlet: what does muddling through look like for brazil? you have inflation at a 13 year can'tthe central bank raise interest rate

the imf has always stood strongly for free trade.ear the rhetoric here in the united states that we're heading toward protectionist policies. and it's at least a zero sum and those kind of policies should be avoided which is exactly why we're advocating the three pronged approach that i just described. >> david does the imf stand behind it's warning last year to the federal reserve that it's not raising interest rates. and the fed layed out a approach to have a state dependent monetary policy. we believe they stick to their guns which is to look at the evolution of the economy and look at the data and mandate and follow that. >> thanks for joining us this morni morning. it's been a long cold winter for the market. the dow is down 96. don't go away. ♪ he has a sharp wit. a winning smile. and no chance of getting an athletic scholarship. and that is why you invest. the best returns aren't just measured in dollars. td ameritrade. companies must adapt.changing environment, but one thing should remain constant - a financial relationship w

david: the governor is standing next to the managing director of the imf, a big move for the imf to welcome's currency into the currency reserve basket. any sense that there was pressure by the imf to have a role? sonja: i think absolutely this kind of transparency and openness is out of a fundamental tenet of good investor relations. a type of guidance that the imf would be giving china on a regular basis, yes. caroline: give us a sense of how much china will act within volatility across the emerging markets. the first quarter of 2016 has been the best quarter for the market fx, the best month on record. phenomenal really this by the volatility from china. how much do you expect volatility to ease going forward with transparency in china? do expect fits of devaluation or depreciation to come? sonja: i think you have seen a significant downward moving volatility. i think the chairwoman yellen has been saying in terms of the wait-and-see attitude and more lenient in u.s. policy, i think it is held the mood. certainly more stabilization in china has helped as well. we see more portfolio inflo

tom: at the imf, it was a phrase. tell me madam lagarde do that by herself. >> sometimes the choice of words is left to the boss. i think mediocre -- i think we are in the mediocre world at this point. we have to accept it. the emerging market you market -- economies had is in the past, at least for some time. china is not at zero, but it is not going to be at 10 anytime soon. growth in advanced economies has decreased. it is not just a measurement issue. looking forward, yes, the world is going to go below the rate it did before the crisis. you call this mediocre by historical standards, he should have a 2000-your view. it is incredible. if you compare to the first half of the 2000's, yes, mediocre. francine: olivier blanchard stays with us. a conversation with barclays ceo, and exclusive interview at 7:15 a.m. in new york, 12:15 in london. ♪ tom: this important day for i am tom keene. we welcome all of you. mario draghi later today in an interview with the new leadership, freshly minted leadership, barclays as well

. >>> a top imf official saying the group could cut the global forecast in the weeks to come. they're calling on policymakers to take comprehensive action to strengthen their economies, echoing comments from imf managing director christine lagarde last month. back in january, the imf projected global growth of 3.4% in 2016. that was a downgrade in itself. and 3.6% in 2016. while he expressed concerns about a slowdown in china, he does not foresee a hard landing. just echoing other imf comments we've gotten in the last few days, warning about global growth and the need for policy action, especially fiscal policy. they've downgraded their growth forecasts nearly every meeting over the last few years. >> we're not likely to get any fiscal policy today, but we are likely to get monetary policy action. let's get to the big story of the morning, the ecb. cnbc's julia chatterley is in frankfurt waiting for the central bank's policy announcement. what can we expect? >> reporter: well, he's got a lot of options. good morning. if we look at qe, the bond buying program, he could increase

and the imf is a key player.n my part, much like the dutch imf hasermans, the always been a key player in this and we want them involved. aan: it would appear that quartet mission will be in athens as early as of this week. that kicks off the process of greece getting access to the 60 billion euros they are still waiting to get. if you look at the two-year bond, you can see yields falling. of theflects some investor optimism that greece on the back of the summit and on the back of warming relations will get more financial assistance that it was not clear they would get one week ago. scarlet: thank you. ryan chilcote reporting live for us in brussels. much more coming up on "bloomberg markets." are an increasing concern. the background on that next. ♪ scarlet: this is "bloomberg markets." i am scarlet fu. while the sec has taken a renewed interest in the etf industry, it turns out it was their idea the first place. that is in the current edition of bloomberg markets. it was adapted from a book. joining us now is e

-- tap its imf credit line? alberto: probably not. it is a flexible credit line with the two companies with strong fundamentals -- awarded to countries with strong criminals. we understand what the authorities are doing. -- mexico's place within the global economy. tremendous exposure to the cycle in north america, but after all, what are you doing for me now? disappointingn but right now it is not doing that well but they did a number of structural reforms and better things are waiting for us. i'm not sure that will happen but it is still a very constructive narrative. the policies are disciplined. the authorities are acting in a way that they are addressing the problems. so we will see. it is still a constructive story by not growing that much. david: thank you so much. tracy: thanks to alberto ramos of goldman sachs. that was a whirlwind to her the land market economy. comment -- whirlwind tour of the latin american economy. coming up come on this seventh anniversary of the most recent bull market, we hear from dueling equity strat

if the lungs with the finance ministers with the imf. some have said with the world u.n.or the hum each one of those says, this is not our problem. what vehicle to be had in the space? a majority, for the first time and congresshouse said they want this. if you do not have it someplace, and binding protocols in place, we are going to talk about this for another four years, while we continue to see deficits get ever deeper. that is a real problem in this country. >> fascinating. thank you very much. [applause] , consumer advocates from around the country are in washington for the consumer federation of america annual conference. this morning, we will take you there for the future of marketing. live at 9:00 eastern on c-span two. this morning, a look at the terror attacks in brussels and the threat posed to european citizens. live at 9:00 eastern on c-span three. >> vice president joe biden called for the confirmation of president obama's pick for the supreme court, merrick garland, at the georgetown law center. this is 40 minutes. [applau

the imf chief visited vietnam to visit with the country's leaders, praising what she says is now onee worlds most open economies. christine: if you have a strong the chineseith growth model come if you have commodity prices that will eventually fall lower and for longer, then it would expose the vietnamese economy, and that would not be good for the vietnamese population. angie: australian prime minister malcolm turnbull has set the scene for an early election, which would see both houses of parliament dissolved for the first time in 30 years. for more, let's get to paul allen in sydney. a bold move from the prime minister. talk us through his plan. reallyalcolm turnbull, appearing to clear the decks. he has brought the budget forward a week early to may 3 and is recalling the senate on april 18. they are going to be debating to bills, one having to do with the transparency of unions, and the other to do with the construction industry watchdog. should either of them fail, and it is likely both would, under australia's constitution, that would give the prime minister the ability to as

you can see this is official imf purchasing capita power parity and current u.s.r prices. ,o doubt vietnam is in front represented by the orange line. cambodia is the blue line, but have a look at laos and myanmar. we are starting to see myanmar start to catch up in terms of per capita data, per capita spending per person. terms, 5000 164, so starting to see that there is a lot more purchasing power. -- 5001 hundred 64, so starting to see that there is a lot more purchasing power. the fact that we have two thirds of the population also in rural areas means there is a lot of room for development in these countries, so certainly myanmar perhaps getting back to the days pre-1960's when it was actually one of the richest of southeast nations, and the stock market will be trading in full this week. yvonne: thank you. topet more on all the days stories at our digital destination, bloomberg business, the best of bloomberg news, business week, television, and new digital content and one address. also on bloomberg.com. it has been really a month since investors started bet

it's an internal debt crisis rather than a next her to one that would require an imf a lot.e it by selling more external debt? guest: i would unnecsarily go th far. in priceinted out, action in terms of brazil, the situation is that the sky is falling and some commentators brought out the possibility of imf involvement. we want to underline brazil is experiencing an adjustment, not a crisis. the reason for this is brazil has significant liquidity buffers, two hundred 70 billion in reserves, a significant -- account at the treasury which allows them to manage interest at local markets and a floating currency regime. i would not necessarily say that to resolve the situation you would need to issue debt. if anything, you need to cut back expenses. another factor limning out there is how commodities trade. oil prices appear to have bottomed for now. how much stabilization to commodity prices give brazil? guest: it certainly helps with respect to maintaining currency stability. one of the reasons why brazil finds itself in the situation it ,s in today's because the past it was ab

we work with the imf on according systems. between ourselves and cut by the imf as were most of the technical assistance is coming from and we were closer together constantly spent i think we do have a good model and we didn't have recommendations on better coordination your under secretary kimmitt in our hearing indicated that while we have plenty of commerce department usda attaches over a number of our indices this on a couple dozen treasure attaches in the indices. that seems to me to be insufficient number given the threat environment. it doesn't seem to me would seem to me we can't officially project our economic for our counterterrorism financing objectives without more treasury attaches deployed worldwide. would you agree to? >> i wouldn't say no to more treasure attaches. i would not suggest any inadequate in the treasury attaches we have out there. they do a tremendous job. >> i'm not suggesting that but wouldn't you agree having treasury at the shades deployed in more places would be at least as importan important a

we can also look at the imf -- the imf has been very gloomy about everything for the past five years,forecast above average global growth for the next five years. maybe the risks are bigger to the downside, below we have seen so far is decent. i think the talk is to negative. -- is too negative. francine: i want to get tom and the conversation. many ceos are too optimistic but not spending enough. this underlying uneasiness, you see in markets and in ceos, is symptomatic of something. is there not a possibility that we are looking at something that we can't quantify, but is the next shock? >> it's always possible. the longer this sentiment continues, the bigger the risk that it eventually spreads to the real economy. is what we have seen so far that sentiment indicators have started to deteriorate, and economic growth has been holding up pretty well. i think we must keep that in mind whe before we put too much emphasis on it. tom: it is super tuesday in america, which means it is a southern election. help us with the democratic changes and the manufacturing changes of america. we have

that is after policy makers loosened controls on margin lending good the imf managing director christine lagarde has said china is on track with its reform. expect to be more difficulties. >> the transition is going to be good for china, it is going to be good for the world. unlike any transition, it will not go without some bumps on the road. we should expect that it there is a delicate balance to be struck -- expect that. there is a delicate balance to be struck between reforms that need to be accelerated. kumutha: malcolm turnbull has set the scene for an earlier election which is seen both parties in parliament resolve. senate passes legislation to crack down on trade unions. >> instruction by the labor in the green in this administration must and. the senate will have an additional three weeks to deal with the abcc and registered organizations. plenty of time to pass these laws. if the senate fails to pass these laws, i will advise the governor general to dissolve both houses of parliament. kumutha: barack obama has arrived in a rainy havana for a three-day visit, becoming the first

we work with the imf. between ourselves, fatf and iaf that's where most of the assistance is coming from and we work closely together constantly. >> i think we do have a good model there and we do need to have recommendations on better coordination. under secretary kimmet in our hearing indicated that, you know, while we have plenty of commerce department and usaid, there's only a couple dozen in our embassies deployed worldwide, that seems to me to be an insufficient number given the threat environment. it wouldn't seem to me that we can sufficiently project our economic or counterterrorism financing objectives without more treasury tat trk ataches. >> i would not address any inadequacies. they do a tremendous job. >> i'm not suggesting that but a couple dozen. wouldn't you agree having them deployed in more places would be at least as important as agriculture -- >> i think -- i'm not going to question the value of other attaches. >> we need to continue to work on that. quickly in my remaining time, toipt

that through the latin american region, and helping to help cuba join the organizations such as it's imf, the world bank and other organizations that demand that their members live up to international standards on human rights and the economy. >> thank you. we'll be calling on you again shortly. thank you very much. >> you mike viqueira is live in la vanna. we've gotten those technical situations worked out. what can we expect from this meeting? what does the president have planned for havana? >> let's go through the ticktock a little bit. the president arrived last night, first family in toe. the air force one landed when the skies opened up and rained over all over. this would cement in people's mind that this is a corner that was turned. here is the president of the united states walking through old havana with thinks wife and daughters. it was then that another historic handshake between the two presidents president raul castro and president obama took place. those two are meeting now and we do expect remarks, dueling remarks or joint remarks from president obama and president castro

we are with our guest, the deputy managing director of the imf -- thank you for your time. a rocky two months for the renminbi since the last time we talked in china at the world economic forum. just after they devalue the currency, we have had a lot of hedge funds speculation, talk of competitive devaluation, what with negative rates in europe and also japan. are you concerned about competitive exchange rate policies, and how it might affect the renminbi? >> so far the central bank governors will not take comparative devaluation to monetary policy. i think that is clear. we do clearly see the exchange rates volatile in the market, and a lot of currencies depreciating with oil price dropping. meanwhile, this is a different mark on the exchange rate market. twoexchange rate -- this is very different concepts. stephen: i guess we have seen the authorities spend about half $1 trillion of their reserve defending the currency. is the imf asking china for more clarity on the derivatives market and potential futures, holding that they might be using so they wouldn't have to burn t

what still means to happen to have the imf at the table? how many summits away our we?or five? ben: we're still a long way away from that. one of the key moments we will see is next monday, march 7. we have the unusual occurrence of a eurogroup. weave a meeting of the euro finance ministers. -- we have a meeting of the european finance ministers. finance ministers will talk about greece, amongst other topics. i don't expect a breakthrough, but there is an acknowledgment that the two major crises are inextricably linked. guy: how is this actually playing out when it comes to greek politics? crisis narrative, this victim narrative, playing out when it comes to the greek political story and how is that feeding into the wider narrative? ben: we are witnessing an interesting phenomenon. essentially, angela merkel is one of greece's last best friends. she is constantly inconsistently fighting on their side, which of partse, is a very strange when you think of the pictures of her during the height of the financial crisis. and that is being acknowledged. one of the headlines to

katty: tuesday march international women's day and the imf has released a report urging europe to closeder gaps and tapped into the full potential of women in the work force. in the second part of my interview with christine lagarde, she addressed what it would take to actually make that happen. given the pressures on europe at the moment, one of the bright spots you point to is employing more women in the european union. do you really think women could be part of the solution? >> i think women could be part of the solution in many corners of the world, but particularly in europe. the latest findings develop the conclusion that more women in the workforce at the board level, at executive levels, is actually a boost to companies, whether they are small, medium, or large. there is a very strong correlation as well between the number of women at the top levels and the population of women in the workforce at a more general level. katty: so more women employed -- in more senior positions could mean more profits for european companies? >> yes, it does. katty: why don't market forces just ensu

>> we work with tfaf between ours, and imf. that's where most of the technical assistance is coming from and we work very closely together constantly. >> i think we do have a good model there and we do need to have recommendations on better coordination. under secretary kimmet in our hearing indicated that, you know, while we have plenty of commerce department and usaid attaches over our embassies, there's only a couple dozen in our embassies deployed worldwide, that seems to me to be an insufficient number given the threat environment. it wouldn't seem to me that we can sufficiently project our economic or counterterrorism financing objectives without more treasury a thttaches. would you agree with that? >> i would not address any inadequacies. they do a tremendous job. >> i'm not suggesting that but a couple dozen. wouldn't you agree having treasury attaches deployed in more places would be at least as important as agriculture -- >> i think -- i'm not going to question the value of other attaches. i can tell you the value of

they do not want to open the capital account as they thought .hey would the imf has reiterated they wouldnclude the yuan in the basket overnight. i agree that there is challenges, no doubt about that. they need to readjust it. there is more positive to look at. inncine: what about outflows february? this is still a concern. measuresecause of the that china put in place to not allow capital to leave. >> yes, the outflows are ultimately driven by domestic depositors wanting to shift money abroad. francine: is it capital flight or not? >> it is leaving for low yield areas. it is a matter of wealth preservation. leaving is reflecting, first, expectations that the yuan will have to begin further. they cannot hold onto this to reflect the economy wow, at the same time, deleverage and sustain. >> they came out with a report that said all lot of the cash was used down to pay the dollar debt. i ask myself, can china control capital outflow? yes, they can. that is a more important argument. julian: they control everything -- francine: they control everything. if they get it right, they can manage t

we were watching almost every day when you are fighting with the troika and the imf -- do you miss that>> well, no one would miss that, i don't believe. what i do miss is the sense of hope when we entered government, that we can have a sensible agreement with the troika. were forced into a situation -- this is what happened -- the greek government was not going to partake of the charade and has accepted the task of implementing an unenforceable program, a program ist everyone knows that it absolutely impossible to implement a program that makes no financial sense. francine: i know you think it doesn't make financial sense; a lot of analysts believe you but a lot disagree with you. do you relate to the frustration that brought you and your boss, mr. tssipras, in power? >> not in the slightest. allow me to say something extremely straightforward. when i moved into the finance ministry, it was abundantly clear, as it was to everyone in europe and the imf, that the program ahead for greece was financially implausible. fiscal targets that we inherited when we moved in to office were so gross

i would suggest that it is not oecd; it is not imf.s to be the adults in the room, and they dissented yesterday. dissented from additional activity to the central bank, that you could say that that raises the ante for them to act like adults in the other room in which they play a role, and that is brussels. certainly no tit for tat in terms of what is going to happen, but if you are going to dissent from the monetary policy tool, and it is the only one being used out there, then you have to implicitly say something more is going to be done, either on fiscal and on structural -- both of those things have more to be done in europe and more to be done through brussels. tom: that's the most important thing we have done in the last three days. if you will dissent, you better do something. mann, she will continue with us. jane foley, as always, thank you, thank you, thank you. yesterday's historic hour. coming up, peter guber with deutsche bank. on.re thrilled to have them this is fun. francine lacqua, tom keene, bloomberg "surveillance." ♪

the head of the imf was in vietnam to meet with country leaders, saying it has one of the worlds mostn economies. a strong have transition of the chinese growth model, if you have commodity prices that will fall lower and for longer, then it would expose the vietnamese economy, and that would not be good for the vietnamese population. >> the long-running saga of the sharp bailout by foxconn remains delayed. beare hearing a deal may not signed this month. it has been 25 days since our board voted in favor of the bailout proposal, choosing the offer over another bid. since then, foxconn chairman has held off signing the agreement was sharp as advisors look at sharks books. foxconn has sought to reduce the amount and wants more clarity on sharp's performance. the taiwanese company also seeking to reduce payments for new shares by 10% to 20%. foxconn and sharp says they are working towards a final agreement, but neither company has set a signing date. china's richest man is coming to .he rescue of fifa group has become the first major sponsor of fifa since the scandal ousted sepp blatter.

the imf was saying yesterday we have major problems ahead of us in terms of health care.n you look at the brexit debate, and when you fold that into single-digit returns, is this a real risk that the markets are underestimating? the brexitll, ,ebate, the rest -- the risk the markets understand how dangerous potentially the turmoil is that could come from brexit, in terms of not just disrupting the u.k. but theupting europe, and president that may set. -- and the precedent that may set. andrisk to both the u.k. go back to you concerns of other countries perhaps wanting to leave. that may obviously require much more stimulus to try to hold it all together. francine: dominic konstam, thank you so much for later this week we will speak to the former chief economist of the imf. that is on thursday. this comes on the back of the oecd warning that a lot of major countries are slowing down in growth. ♪ tom: good morning, everyone. "bloomberg surveillance." finally a day off from the surge we have seen. dow futures at -102. francine, looking at oil, finally giving back. francine:

the imf managing director currently in asia right now.wn bureau chief spoke exclusively with her, asking about the effectiveness of negative interest rates. >> if we had not had those negative rates, we would be in a much worse place today, so let's see whether it kick starts the process of fueling credit to the economy, changing the behavioral pattern of people, and changing the strategy of banks as well. it might be good for the economy, maybe not forever, but for some time. itshina recently had national people's congress, there was concern the chinese government is to focus on stimulus and short-term growth at the expense of reforms. what is your take on that? >> we believe china will continue to grow the number one, and our assessment is 6.3%. we have to assess the decisions that have just been made by the chinese authorities to factor in those decisions and see whether we forecast a little more growth possibly. >> you recently urged asian nations to take the lead in -friendlymore growth policies to counter global economic challenges.

the imf has slightly downgraded their forecast, and other international agencies have as well. chinese growth hasn't proven a great surprise. we've anticipated that it would slow over time, and it seems to be slowing as well. japanese growth in the fourth quarter was negative and that was something of a surprise. and with respect to the euro area, recent indicators suggest perhaps slightly weaker growth. so there's been a number of emerging markets. as you know we are suffering under the weight of declines in oil prices are affecting the economic activity. our neighbors both to the north and south, canada and mexico, are feeling the impact of lower oil prices on their growth. so our projection for global growth, for those reasons, it is slightly lower, not dramatically lower, but enough lower to make some difference to our forecast. and as i indicated i think that's part of the reason, along with the associated increase we have seen in some spread that are involved in, enter into corporate borrowing rates, and can affect investment decisions, it's the reason to think that a sli

interestingly, after the yuan was included in the imf sdr basket, it looks as though authorities are pulling back from their internationalization push. they comment that the national people's congress saturday were more watered down than in the previous year. in 2015, he was more specific. he said china would increase the flexibility and make progress and the capital account. on saturday, he sadly said the relativelyremain stable at a balance level and in permits would be made at how the exchange rate is decided. it is settings yuan stability is the top priority. and alex wolf of standard life investments as simply china moved too fast on capital account opening. ishaad: we are looking at ambition to become the world's largest cinema chain. heidi: a bit of a cake in the plan for global domination when it comes to the cinema space. comic cinema shareholders putting his foot down. , $1.5e entertainment billion is the offer. to vote against the merger because $30 a share at .he moment is seen as too low o this could potentially put amc's plan to become the world's biggest cinema chain t

one thing is for certain, imf, ,orld bank, global bodies reducing forecasts on.'countries across the world when it comes to growth. are you doing the same thing, and where? >> pretty much across the board. the one region where we have not brought the growth numbers down is europe, surprisingly. they were low already. 1.5%rowth rates in europe, to 2%. rishaad: that is optimistic. >> may be, but we have not changed of those a lot in the last year. we had been bringing them down recently. growth rate is now 2.1%, lower than we had before. china growth rate is 6.2%, but maybe some upward risk to that growth number. yeah, thest part, forecasts have been coming down, not up. rishaad: no global recession this year? >> it is difficult to get a global recession. a growth recession, use a lot of different definitions of recession. the classic definition is two quarters of negative growth. you will not see that on a global basis, but if you define a growth recession as too weak quarters, you could see that. we still think the u.s. is strong enoughong, to raise interest rates

interestingly, after the yuan was included in the imf basket late last year, it looked like just looks like authorities or possibly pulling back from their internationalization -- it looks like authorities are possibly pulling back from their internationalization push on the currency. we have a number of economists commenting on that. one says this suggests china is uan stability as its top priority. another says china moved too fast on its capital account opening. we want your opinion. tweet us your thoughts. there is my handle. the #trendingbusiness. rio tinto had a heavy selloff earlier in london. in sydney, we are having a look at whether reality is setting in again for commodities stocks. it appears so. rio tinto and bhp both up about 3%, as is for to skew -- four to iron nor is weirdly stable overnight. every other commodity took -- weirdly is stable overnight. every other commodity took a hit. these are commodity lows we have not seen since november. it had an impact on bhp in london, off 8.5 percent. rio off 9.5 percent. look at green core, up 18.2 percent. anglo mining down 15

if you look at the wto or the imf or the g7, g20 bodies to try to set standards for national services or try to have a role in this, the e.u. as an institution is now trying to depose itself into speak for all 28 in those debates. and actually what you would find is the u.k. would regain strength. >> it's a fantastically complex area. there have been an awful lot of institutions around the world. in america these have been led by us and europe is still catching up. you cannot deny that the biggest economy in the world would have a less influential part to play in the international agreement and britain would be an important financial services center. it's not the same size banking market. if you extract britain, yeah. >> i think paradoxically what you might get is an intensification of european influence in global conversations. you would have not just the e.u. speaking but you would have the u.k. with all its influence in financial affairs are on the table as well. as i'm sure you would need a lot of coordination between us. one of the difficulties is we as a country now are more and

i covered the-- imf in lima last year.s told was watch out for emerging markets that borrowed dollar. if janet yellen starts normalizing to quickly, then dollar goes up, and you play that it hurts leveraging markets. >> i think the longer it goes on, the more emerging markets will take advantage to fix the hole in the roof. the longer it goes on, the more it builds up. francine: all right. craig botham. up next, iphone row. the u.s. has dropped its privacy case against apple. ♪ francine: let's get to the first word with nejra cehic. nejra: thanks. the hijacker who claimed he was wearing explosive belts and forced the domestic egypt flight to land. the majority of those on board, except a few foreigners and crew, have been released. it is the latest in egypt suffered to project an image of stability five months after the downing of a russian passenger plane over sinai. the u.s. has dropped its privacy case against apple after successfully hacking into the iphone used by one of the san bernardino terrorist. the justice depar

right now the finance ministers speaking and the imf director .hristine lagarde you can watch it livee bloomberg. type in lives and go. a press conference, a news conference of global central bankers in paris. checking in with bonnie -- vonnie quinn. vonnie: more attention to in hong kong as the city prepares for elections in september. the government says hong kong is an inalienable part of the china and will take action against any movement that urges otherwise. the congressional delegation in saudi arabia. it comes ahead of the king scheduled visit of president obama next month. lindsey graham was in israel yesterday. mr. obama is due in real april 21 two as tend as a met with king solomon and leaders of five middle east countries. vice president biden has a yesterday in washington. president obama refused to meet individually with him during the nuclear summit. australia became the latest citizenso earn -- one of traveling because of terrorist threats. has reversed himself after making controversial comments on abortions. he said there would have to be some sort of punishment for

erik schatzker. .oming up here is surveillance i will be joined by tom keene talking to the former imfwe will be talking about china. paul donovan also talks of negative rates next. ♪ francine: bankers beware as bankts are pricing -- chiefs braise for more pain -- brace for more pain. hold? weish positions speak to olivier blanchard. prices rise the most since mid-2014 as food costs surge for lanyard new year holidays. -- lynn are new year holidays --

that mean the imf will contribute to the bailout?y not onlyot from a clinical perspective but an economic perspective. pensioners have already seen as much as a 50% hit and there's less of a demand in the economy. we are and a downward spiral which has led to greece losing 30% of its gpa. what about the deposit in greece? do you anticipate that situation is under control? do you anticipate the deposit situation we saw last summer where deposits flee the country? is that under control? guest: at the moment, there are controls in greece. anticipate controls will be in place for a considerable amount of time. the banking system lost about 40% of its deposits. about 107 billion the country. mark: at the same time, greece is dealing with what many are calling a humanitarian crisis. 25,000 refugees stranded. what is the economic and social costs of what many are calling a crisis? there is no doubt that there is a crisis. we have approximately 4000 people a day. there are some businesses that benefit from that. island ands on the so forth,

world needs more stimulus and the imf is encouraging coordinated action. new zealand cut interest rates, china has not only cut reserve requirements but increased the budget deficit. i think we will see the u.s. raise rates in june but it phil seems to be on track in the u.s.. what does that mean for the reserve bank of australia? mark: we wouldn't expect the reserve bank of australia to follow the central bank of new zealand but they said they wanted to have a weaker currency. the new zealand cutting and dollar showing off and the trade weighted australian dollars getting even stronger, so i think you will see they will have to cut rates not just because of what new zealand did but also because the us trillion dollars very strong and they are not fully adjusted. alix: this brings back the theme of the virgins. everyone saying the virgins can't last because we're going to see a stronger dollar. you look at the spread between two year yields and for japan and can see the virgins is there. mark: the premium the u.s. pays over europe and germany, new multi-ye

the core institutions of financial market seems to worship the imf, central banks, government interventioni think all that is in danger of great repudiation. that is why we see all these populist parties rising. we need to fix this. we need to get rid of the fiction that we can borrow our way to prosperity by printing money of the central bank. wety: just remember that have created millions of jobs in the obama administration. david: if we actually look at real jobs, full time jobs, they are no more today than there were in december. secondly, half of the so-called jobs created are born-again jobs. we lost them in the great crisis and now we have them back. we do that every cycle. the fact is for 15 years, we have not been creating real permanent, lasting, full paying jobs. betty: we're going to have to leave it there. david stockman, we are going to be back on "bloomberg markets." ♪ mark: you are watching "bloomberg markets." i mark barton in london with betty liu in new york. oil is falling from a three-month high. iran would raise output from preproduction levels. i'm here with julian l

mark: imf managing director christine lagarde is defending the negative rate move in europe and japan. why she says the global economy would be worse out without them. caroline: the identity of street artist banks see has never been revealed but that could change. is that a good thing or a bad thing? let's get straight to the market desk now with bloomberg's julie hyman with the latest. the day is not done yet, so you never know. i just want to mention that we got some sentiment numbers from the university of michigan with the sentiment number coming in at 90. following to 90 from 91.7 last month and that is also a five-month low. consumer confidence numbers coming from the university of michigan. it looks like as part of the survey low income americans became more concerned about prospects for the u.s. economy and higher gasoline prices. we are seeing some gains in u.s. stocks, all three markets are higher but just barely. has gained the most in the year as we saw it take into the positive yesterday. financials is the best performing group followed by industrial and energy. financial

importantly, the imf, the oecd, and g-20 countries, they are recognizing in an era of low growth andographic change, is usinghould be doing fiscal measures to grow the economy. we are getting international observers on board and i am confident investors in canadian be supportiveg to because we will enhance the long-term judge after he of the country. we are in fact and embracing all canle who look toward how canada be more successful in the future. we know that having not only a better infrastructure that helps people in the country, creating a more innovative environment and creating a plan for growing businesses, this will help put as a country stage that made decisions that could make a real difference. david: let's talk about the commitment to investment. the developed world is stock at interest rate at or near the zero bound. there are questions about the efficacy of unorthodox monetary policy. is it safe to say looking at the and yourat you government believes spending is the only way to kickstart an economy at this point? >> first of all, we do not call it spending. we are mak

however, what happened was that the riots started when the neo liberal economic programs of the imf andorld bank and chicago school of economics basically imposed privatization and raised the price of oil and gasoline. so of the float of capital action they were not prepared to deal with it. the riots started in noon 89 when the price of gasoline, still the cheapest in the world was raised and buses doubled the prices overnight, which was not what the president had mandated. >> then you had roidz. it is important to pull all of that in confection, the rides of chavez if you like, but let me ask you: inflation and crime, worse than ever in venzuela. corruption and food shortages? >> correct. >> also a problem. could it lead to a back laeshs against the government? are you suspected unrest? >> absolutely. let me be clear. to be fair, corruption has always been a defendant problem in venzuela. even the presidents that now look back of the center left and center right but very much excluded the communist party which was a political accord signed in 1958. even those parties which are now loo

it belongs with finance ministers or the imf or the world bank. the problem is every one of those guys says it is not our problem. what vehicle do we have in this space to deal with it, for the first time ever a majority of both houses of congress relative to tpp, want currency dealt with in a trade agreement. who knows where the perfect place is? if you don't have it someplace, you don't have binding protocols in place, we are going to talk about this for another 40 years while we continue to see deficits getting ever deeper. that is a real problem in this country. >> fascinating, thank you very much. [applause] >> i would like to turn it over for our meeting to kim, you are up next. >> the conference is going to continue with other business. we will leave it at this point with a quick reminder that all of today's panels from the lieutenant governors association annual meeting are available to watch anytime online in the c-span video library. the justice department with an indictment against seven or raining computer specialists who worked for th

economy, she talked about the imf cutting its global growth objective, no great surprise and chinese growth. the fed expected it to slow down. a surprisingly negative gdp print in japan in the first quarter. but again, no real depth on that and no real discussion of the financial factors that the fed explicitly referred to. prester onind of whether -- pressed her on the exchange -- whether that constrains the fed because the accommodation in europe and japan strengthens the dollar and the answer for janet yellen on that front was no. scarlet: we want to now bring end tom from rbc capital markets. two fed rate hikes are being applied. do you see this as happening or an aspiration, according to richard clarida? tom: in a of ways, we are guided by them. if they tell us they want to go twice this year, on going to change my forecasted twice this year. i think they should have done four times this year. it, she isighlighted going to be continuously worried about what is going on in china and japan and europe. spread widening is what she is concerned about. for things she specifically ment