i mean, a $17 billion imf program.e've done three $1 billion loan guarantees which in scoring terms are less than a billion dollars in budget exposure. the leverage that we got by being part of a larger effort, you know, is just the difference between making a difference and not. ukraine's economy turned from negative to neutral to maybe faster than anyone thought, and our loan guarantees alone wouldn't have been enough to accomplish that. i think one of the things that's happened since the financial crisis is that the imf has developed new tools. the flexible credit lines are being used in a different way and more effectively. they're, with quota reform we have recapitalized the imf, taken the money and put it in the main fund itself. so i think right now the imf has considerable resources. we do have to ask the question always what would be the consequence of the next crisis. you don't have the luxury of knowing the precise contours of a crisis until it's upon you which is why you have to have the tools in place but

i've let the imf know about that. they're aware of my concerns and this legislative initiative as well. with that, mr. xharm, i appreciate the opportunity. >> chair now recognizes the ranking member for three minutes. >> thank you very much, mr. chairman. i would like to thank secretary lew for coming to testify before us today on the state of the international financial system. imf quota reform package that was adopted after a five-year delay as part of december's omnibus spending bill is an important achievement and a positive reflection on the perseverance of u.s. treasury officials and democratic congressional leaders to get this deal done. previously, the failure of the u.s. congress to approve the imf quota reform had put the world economy and financial system in serious jeopardy. with ratification now complete what is essential to u.s. interest is to restore some impetus to ongoing imf reform and to repair in part the damage done to the u.s. reputation for leadership. the price the administration paid for the q

if the imf is on board, there are rules. is this the hat tricks? skeptic in me suggests this is so preposterous that the imf would conjure up a credit default situation in europe at the time of a brexit. reporter: i think that it has to do with greek politics. this transcript did not make us any wiser. the imf was always pro-greek debt relief, always pro-greek government cutting spending, rather than increasing taxes to the middle class as it keeps doing the past year and a half. i think the greek government goes on to anti-imf rhetoric, keeping government spending at current levels, together with the latest polling intentions. some of the voters from last september are dropping away from tsipras's party. the main opposition party has an eight percentage point lead. to nine people of 10 when asked to the government is handling things said they are at least disappointed. it is a bit of theatrics, but things could be worse if the greece keeps under this stance of anti-imf. anna: thank you. strategistrg fx joining us there from athens. manus still wai

the imf has been pretty right.hen i saw this, we just saw this come over, i said -- i was hoping they would feel a bit more sanguine. more upbeat about china, about europe. i see some things happening in these places that are positives. but the imf does very, very good work. this is -- this weak demand story is not going away. and it's kind of contrary to what a lot of companies are saying. which is interesting. we'll talk about klaus kleinfeld later, but some companies are seeing demand pick up in latin america, certainly in china, in europe. it is a bit of a conundrum. i did not expect this. i thought they would be pretty much it remains, as opposed to it's getting weakerment. >> you have pmis on the manufacturing and services side. it's starting to tick up a bit. the question is whether that's a real inflection point or not. >> i agree. i thought the imf would take into account the last six weeks of data, which have been pretty good. maybe they are just green chutes, maybe they can go away. the imf is more down

pensions are rising between greece and the imf.g director christine lagarde has rebuffed greece's calls to replace top officials overseeing the country's bailout . she said the imf is a good distance away from an agreement that would allow for additional you loans. we go to athens where nico's chris louras is standing let's talk about this leak first which is i believe a transcript of a conversation among officials that essentially says, how are we going to force germany and the other member nations to take a haircut on greece's debt? greeceussions between and the imf have to send it to name-calling over this past weekend. after wikileaks published this transcript. the greek government was quick to accuse the imf of banking on credit default event in order to force everyone involved in the greek bailout to sign up. th-- christine lagarde responded with a letter saying this is all nonsense. she actually hinted the greek authorities have been spying on imf officials. pretty strong statement. the greek government responded again today

the imf says given the target set by china, the imf expects more policy stimulus to stimulate growth,lowing resilient domestic demand and growth and services, offsetting the weakness in manufacturing. longer-term structural issues are still at the heart of the imf's concerns and china. a gloomy forecast casting a gatherpicture as leaders for the g-20 this week. some bright spots, emerging markets growing, india one of them. a more: we will have detailed look at that story later on. tweet us your thoughts @rishaadtv, using #trendingbusiness. the pressure mounts on the malaysian prime minister, one of the stories we are covering. here is around that. rosalind: the investigation into the malaysian government fund is widening. they are asking luxembourg and singapore for help. the attorney general is investigating two former officials from the united arab imris. -- eric emirates. -- united arab emirates. they are also the subject of probes in other countries under allegations that it was used to funnel money. general hasttorney cleared the prime minister of any wrongdoing. japan plans 711

that is right out of the imf playbook. change at a bunch of factors and one of them is normally eight that really for restructuring. that has not happened this time for greece. the imf is going back to what it does best. intransigence from europe. we are half an hour away, less from the european open. let us update everyone on where we stand. what you will see this morning is a fairly anemic story. not much action in terms of price volatility this might. we have seen a fairly quiet session in asia. it looks like we will see a similar story here in europe at the get-go of trade in about 27 minutes time. hans: a risk off sentiment. the oil story is different. we have the interview with the saudi arabian deputy crown prince. brent is almost below $38, almost down more than 1%. topix is up in japan. it looks like dollar-yet, we are seeing much stronger dollar. all the weight -- skews me all the way down to 1.11. the 10 year, not trading. no one was really concerned about the jobs report. still seeing a rally in treasuries. let

speaking to cnbc at the imf meeting in washington, the imf chief, christine lagarde, seemed to welcome the prospect of turning up the rate hike cycle. >> being data dependent, being gradual and well communicated, we're more likely to have an interest rate race rather than a move into negative territory. it could probably mean a move in 2016. let's hope so because it would mean that the u.s. economy is faring better. >> the exchange operator bats global markets has priced its ipo at $19 per share, at the top end of the indicate the range. the company raised over $250 million marx making it the biggest ipo of 2016 so far. it also upped shares issued from 11 million to over 13 million. this is the bats second launch attempt after a number of issues forced an ipo withdrawal back in 2012. >>> investors pulled $4.8 billion from u.s. based stocks, funds in the week ending april 13th. that's according to the latest data from lipper. it happened despite u.s. shares moving higher on the week itself. funds specializing in european shares posted their 11th straight week of outflows, bucking the tr

imf -- p.m. eastern, jon: you just lift the lid on that imf forecast. u.s.to 6.5% which is where china tells us gdp will come in. vonnie: we had the u.s. economic data. retail sales. jon: a lot of echo data -- a lot ofeco data. that does it from david westin him a vonnie quinn and myself. bloomberg markets continues right here on bloomberg television. ♪ betty: 10:00 a.m. in new york, 3:00 p.m. in london, and 10:00 p.m. in hong kong. i'm betty liu. mark: i mark barton. this is bloomberg markets on bloomberg television. betty: we are going to take you from new york to london to washington in the next hour. a warning from the imf this morning three at it says global economy could slide into stagnation. it is cutting the outlook for gdp. chief economist saying there is no longer room for error. mark: big news in the banking industry. citigroup and nomura are planning to slash jobs while italy is forming a fund to rescue its troubled banks. -- a: the late posthumous memoir released today. what the former aig chief said about the u.s. government bailout of the ins

the imf has been taking this seriously. a lot of columnists saying that the imf has to be part of the solution. brian, you are still on our new york set. if you look at what madame lagar de was telling me, she was not only talking about greece. it translates into your world directly through earnings for a lot of the companies. are your more concerned about the risks we are not talking about. the shocks such as the financial crisis are not things we foresaw. it was things that were unknown to us. brian: we are more concerned about drawing. capacity in commodities in emerging markets -- drawing down capacity in commodities. of noise.a bunch we focus on emerging markets and seeing stronger earnings growth in terms of consistency from that area to be able to call more solidification for overall global markets than greece. tom: brian belski with us this money. francine: does the --- tom: go ahead, francine, please. francine: i was going to ask a quiz question -- a quick question on volatility. what that does to the industry? bri

how are markets taking news of that imf move to downgrade the global growth forecast?s: at least, when it comes to stock prices, not a big reaction over here. it is tough to predict the future. obviously, the imf struggles quite a bit to do so. some traders told me it is pretty odd. two of the reasons why they lowered oil prices -- lowered the output, lower oil prices and not so much growth in china. just recently, oil prices increased, then the imf actually increased the protection -- the projection for chinese growth. it is tricky to predict the future and nobody paid too much attention, at least here on wall street, about what the imf had to say. helena: oil prices seem to be jumping to their highest levels in a year today. jens: it is pretty astonishing. this within one week, oil prices are up by a good 17%. on tuesday, oil prices increased another 4%. one reason is he weakening of the dollar in the last couple of weeks. also, there is a lot of hope ahead of the opec meeting this upcoming weekend in doha. what are we talking about? we are talking about a possible p

would like the imf to police.ome of the things that troublous in the international order, either excess u.s. indebtedness, global imbalance. in extreme reliance on the dollar globally. to encourageetter private actors to use other capital markets more. you could make it more restrictive for corporations from asia to come. i think the u.s. financial market has the leadership role they had in the world because of all of the things that makes the united states, the united states. , theical stability liquidity of our markets. those are all good things. i don't want to change that. i want to protect that. that is one of the main point that i'm making. policy,comes to fiscal we ought not to take our ability to borrow infinitely as license to borrow infinitely. during the second, we dug our way out of a very deep hole that we got into in the intervening years. we need to look on the horizon. great progress in this administration in reducing the deficit by three quarters, stabilizing the debt as a percentage of gdp and cr

as we go into the imf meetings, "imf urges fg -- shakeup of greece's deal."raghi and other central bankers, they have huge pressure to just do something to assist greece. for that matter, this is brazil. what is your prescription now for europe to jumpstart growth? ken: i think certainly writing down debt -- tom: just get it done? done, make a it transfer, and they do not like doing it. there is all the talk about needing a fiscal boost, but if you do not do structural reforms, it is not going to work. japan did not, and they are still growing slowly. just get it done. francine: i know, but this is what everyone says. it is easier said than done. when you look at structural reforms, that is not something that the u.k. needs. it is countries like france and italy. i guess my counter argument is that we have already done more than we have in the last 30 years. it is just that we are starting from such a far point, europe needs time. ken: it is different in different countries. spain has done quite a bit. italy is -- italy has probably done more than it is given

the managing director of the imf here at imf headquaters.it back to you in new york. >> still to come, alan greenspan, sarah. he's ahead on the next hour. >> if you ever missed a flight because you were stuck in a security line you're not alone and the situation is expected to get worse. what's being done to change that? that's next. at mfs investment management, we believe in the power of active management. by debating our research to find the best investments. by looking at global and local insights to benefit from different points of view. and by consistently breaking apart risk to focus on long-term value. we actively manage with expertise and conviction. so you can invest with more certainty. mfs. that's the power of active management. that's why i run on quickbooks. details. i use the payments app to accept credit cards... ...and everything autosyncs. those sales prove my sustainable designs are better for the environment and my bottom line. that's how i own it. so what else is new? humm..she's doing good. she needs more care though. s

here at imf world headquarters. wilfred, i'm sorry you're not here. >> a great lineup you have coming up for us, sara. i am here from cnbc headquarters. wilfred frost. we're going to get you straight to a busy morning's bit of data and stories. market action first up. let's have a look at what futures are doing. they're, in fact, down at this hour. down by the tune of about 17 points for the dow. nothing too significant. the s&p down about three points, and the nasdaq by about five points. we got about 1% of gains yesterday for u.s. equities, led by financials, which had their fourth day of gains in a row. three of those days, of course, coming before jpmorgan's results. then the most pronounced day of gains coming yesterday. about 4% for jpmorgan stock prices. dragging the sector up as a whole. of course, the rest of the banks start reporting today. that'll be a sector to keep an eye on. let's have a look at stocks around the world. first up, european markets. they're a little disappointing. again, not too signific

the imf people -- why? one may accuseer them of, and there is a lot to say about the imf, at least they can add, subtract, and they know the greek debt is unsustainable. the numbers will explode, they will fail. in six months time, we will have another failure. so the imf -- wherever the imf goes, tries to impose what they refer to [indiscernible] did i doing labor, devaluing pensions, closing down small farms, small shops, pharmacies and supermarkets. liquidate, liquidate, liquidate. that means shrinkage in the economy, social economy. that is their want. the same time, they are clever enough to know when you shrink the national income and social economy of a country like greece, then you cannot expect them to repay the gargantuan debt that has been a key related. villain.like a call it peace. the german government on the other hand, and the european commission that is acting on their behalf, since they do not want to talk about the debt because this would mean going to the federal parliament in berlin and

david: maurice obstfeld from the imf, thank you for joining us today.outube front man is testifying before a senate subcommittee on the causes and consequences of violent extremism and the role of foreign assistance. which makes it impossible for these agencies to plan, which is madness, absolute madness. ♪ another idea -- ♪ ♪ david: this is bloomberg markets. winds a bill by brazilian -- lawmakers first the brazilian president was step closer to impeachment. david: brazilian shares have gained on speculation there will be a change in government, but the results of engagement remain unpredictable. we have a eurasia group director of latin america with his poor -- itit said there was could be more momentum for president rousseff. do you stand by that? has been thatief there will be an impeachment of the vote yesterday in the committee was somewhat tight. it will be a close call to the end. but we expect the floor of the lower house to approve impeachment motion by sunday. we're likely to have a new president in brazil by early may, as soon as the senate

imf meetings later this week.aber,next hour, meb really smart stuff on what to actually do given our great distortion. ♪ i'm francine lacqua in london. tom keene is in new york. we picked up something from a central banker, the ecb executive board member, speaking at the workshop in cernobio. he's talking about extra stimulus. when we consider that the usage of these instruments is expanded to very high proportions, they may start by diminishing returns at some point. paul donovan is still with us. he's talking about diminishing returns from central-bank action. yet they are the only safety blanket we had at the moment. paul: this has been one of the debates. how much should fiscal policy be coming through? good luck with that. it has never happened, not since the bond summit in 1978. if we look at what is going on, there is stimulus coming through in europe. not so much in the anglo-saxon world. we are backing this up in some ways. i think there is a limit to what central banks can do and we run the danger of the

the germans are for the imf because they want the imf conditionality.his extra, on political player to be there, to help them keep up the pressure on greece. hans: the days are getting longer in germany. why are we talking about greece yet again? why are we back in this conversation? >> because greece is not doing what it was supposed to do. nationality,with but the real structural reforms, the underlying agenda is not addressed, and it can't really be addressed because this is not part of the fiscal conditionality. it would require much more political effort. anna: how united is europe, then, on this challenge? this is anna in london. you highlight many areas of european policy for europe's leading nations aren't quite on the same page whether it is on refugees or the terrorist threat. different countries pointing looking for a call to action on those things and not necessarily finding europeans united. is europe united on how to deal with greece? your previous comment suggests no. >> no, it isn't. that part of europe's more fundamental problem. the le

imf?> that's an important question. what's interesting is that the ins's view on china has changed. if you look at the china theyast back in 2015, what were looking at is the u-shaped pattern for growth -- they expected a decline in growth in 2016 to 2017, that a recovery toward the end of the decade as china benefited from a reform dividend. trying tolater forecast -- they raise the forecast for 2016, but that has come at the expense of a continued slide in growth in the imf forecast for china back to 2020. that really gels with the message we're hearing from other analyst -- concern that china is buying a short-term boost to growth by allowing more rapid letting but they will be a price for that going forward. tom: with all the research you china feelble, does like it is part of the dialogue of the new mediocre or do they feel removed from it, where they don't have to partake in the debate, the discussion, the discourse over a slow global economy? >> well, if you look at some of the conc

the imf report warns negative interest rates could reduce profits of regional bankser and credit unions. the director of the imf s ske with nhk. >> i think that negative rates are a net positive for the economy because they have to relax further monetary and financial conditions, and that's something that should support demand and inflation. >> the imf report also touches on japan's plan to raise its consumumption tax from 8% to 10 next april. imf officials support the hike as well as short-term measures to deal with the impact. >>> checking the markets the rally in tokyo shares continued for a third day on the back of a weaker yen. and it reached its highest close in more than two weeks. for the details we go to the tokyo stock exchange. >>> investors are in a buying mood after encouraging figures came out on wednesday. sentiment was boosted by the rebound in oil prices which cents tokyo shares higher. nikkei average added 3.2% to end at 16 rk,911. the improved sentiment drove down demand for safe-haven assets. the pair went into 109 level touching a one week high. exporters are breath

caroline on the imf, what do we have?cinating headlines coming out now that the eu is working in good slave -- good faith to finish the greek review. words from christine lagarde to alexis tsipras. achievingcerned about progress in an environment of extreme sensitivity. wikileaks released a transcript of the imf looking to want to push more debt relief toward greece. let's get more on this story. it is a fascinating one. let's talk to bloomberg news in athens. set the scene, if you will. arguments between creditors and greek politicians and heated words from either side. yes, well this weekend has been a game changer in our of how the talks were going. if you asked me on friday, i would say we are a week away from an agreement between the two sides. now, the imf has stated that we i ways away. the greeks are not ready to meet the fiscal targets that the imf and their european peers look for the greeks to hit. ally greecehe only has on debt relief. this has been tsipras' holy grail so far. tom: i like what you said about t

the head of the imf essentially saying it's nonsense that the imf wants a greek default. there was speculation that was one of the strategies they were pushing towards. lagarde also talking about how the global economy is not in a crisis, but that it the recovery is too slow and fragile and downside risks are increasing. she's saying global policymakers have to take strong action to counteract the loss of growth momentum. these are just some of the lines lagarde has been giving us from this live conference that's taking place in frankfurt at the moment. now, just recapping our european markets. you saw the main trend a second ago. we are seeing a little bit of selling taking place on equities. our main european equity markets indicating a similar story. all of these -- in fact, all of europe trading in negative territory at the moment. the asian markets overnight, we saw pressure continuing on the nebraska cay, off by 2.5% or so. seven-week lows on the close with the yen rally ing. we had comments from the bank of japan governor. kuroda suggesting he's ready to expand mon

let's start with the imf. christine lagarde denying that the imf is trying to push greece closer to default. she set it's nonsense. >> it is nonsense. they're able to make decision when we are close to the precipice. but in the past, there is nothing to suggest imf wanted to go down that way. i think the transfer is interesting. overall, the transfer doesn't tell us anything new, first of all. the position by the imf, it's interesting to show there's a little area between the increase if greece. apart from that, this story was made much bigger than it is just by the massive political consumption, and it's already coming to an end. >> however it does show, like you say, you have this route between the creditors that still isn't going away. how do you think that tsipras is going to be able to benefit from the new implications in the report and use it to benefit? >> at best, they can try to use it domestically to bring momentum. it flies particularly well with its own voters and party members, so on. it's startin

it is not all fear coming from the imf. is some hope, and that could be from china and more stimulus. take a listen. >> countries around the world face very different challenges. no one-size-fits-all. so all countries will have two follow growth-friendly fiscal policies. all countries will have to build , butient public finances all countries would have to pursue smart fiscal policies. that is, fiscal policies that are well adapted to the particular circumstances of the country. >> it's not just emerging markets that has problems. the imf is says developed well, --re as developed economies are as well. for example, like in japan, the imf once developed countries to ramp up government spending or to cut taxes to encourage consumer spending. in particular, the i'm of pointed to japan, saying it should increase stimulus to balance out the raising of its consumption tax. would be ad brexit shock to europe and the rest of the world. looking ahead, we will see what comes out this week as policymakers meet and washington, d.c. for

the imf does not refute the leak but says it has eroded trust. a former greek representative to the imf thinks it's likely the government leaked the dialogue. >> the president is trying to manufacture a crisis in hoping of pushing the imf out of the negotiations and negotiating just with the commission, which appears more willing to accept the greek positions. he's not pushing as hard as the imf formers for measures of high quality with a permanent, lasting impact. >> many here think they'll be dancing to the same steps until better greek leadership comes along. this looks increasingly like a well-rehearsed script. awe tear rit governments worn thin by discontent have lived short lives, only replaced by austerity govs. the greeks wonder when it will all end. al jazeera, athens. >>> prostitutes in france are protesting against a new law that makes it illegal to pay for sex. they say the legislation passed on wednesday will threaten their livelihood. those found paying for sex face a $1,700 fine. this is to stop human trafficking. the government sa

more so than the imf numbers yesterday and the conference. >> no, the imf global economic outlook is the best read. that's a must read. but also i love the beige book. >> very good. so lots of things to look out for today. in corporate news, nearly 40,000 verizon workers from massachusetts to virginia are set to walk off the job and strike at 6:00 a.m. eastern time. the union's workers in the wireline operations, which includes land lines and internet service have been working without a contract since august. verizon says it's been training thousands of nonunion employees to fill in for those who walk out. >>> got a few stocks for you to watch today. the firm starboard value upping its stake in depomed to 9.2% now. starboard said it intends to nominate a slate of candidates to the board to shake things up at the firm. >>> mccormick walking away from its takeover proposal for the british food company premier foods. the american spice maker saying it decided it would not be able to propose a price that would be approved by premier's board while also delivering for its own shareholders.

with that, i will send it back from imf headquarters in washington, d.c., to you, kate. kate: markus karlsson, thanks so much. one other note on the international monetary fund, along with the world bank, it has welcomed a new member. the island has become the 189th state to join the international organization. that gives the small island nation access to financial and technical support. let's move on with a look at the markets. stocks have been advancing strongly across the globe this wednesday after china reported a rise in imports in march. major european indices ended with strong gains across the board. the cac 40 up more than 3%. the ftse climbing above 6300 the first time this year. wall street also trading higher, despite an unexpected drop in retail sales in march. financial and transport sector driving things there -- financial and transport sectors driving things there. the economy is still expanding at a modest pace. that will give the fed a boost ahead of its next meeting. oil prices have pared back of it since hitting -- back a bit since hitting their highes

you also have the imf report upgrading china.have a couple of other things that are, in my view, looking quite positive. there is a leading indicator that i look at and that has been turning out quite positively. it looks like there is improvement going on in the chinese economy, which is very good news. manus: i am on a correlation roll at the moment. i am rocking it out. 120-day correlation between global stocks and oil. that is why i think there is so much. every word that comes out of , the iraq, saudi, russia biggest correlation since 2013. it is almost inch by inch. how do you look at that relationship and what is that relationship to you when you make decisions? peter: the oil price is a reflection on the health of the global economy. there is a lot going on which relates to supply as well and not just demand, but you have to say that the oil price is some sort of barometer of global growth. if the oil price is going up, maybe that is because global growth is getting better and that is great for equities markets. it is all

we were trying to tally up how many times the imf has done this. 4 times in one year.e speed of these downgrades mean for the u.s. economy? >> the u.s. economy is part of the problem. we have a growth environment where the first quarter of the year could have been flat. by the time it's revised, it should be 1% but that's below are potential rate of growth. we are pulling the overall equation down. as our most other economies. there is no real present -- positive growth story. issues of thent market is that many investors think central banks are impotent and cannot do anything despite the lack of growth globally. is that a risk that we are so negative that any upside surprise in the u.s. will turn everything around? >> i don't think we are as negative as we should the. i think monetary policy has run its course. i think we need to break to a new form of policy in order to get the u.s. economy going. the problem we face is not supply issues. we face demand issues. we have an imbalance of supply versus demand. supply is exceeding demand and we are doing nothing to stimul

the imf cutting its world gdp forecast.of a prolonged slow growth has left the global economy more exposed to negative shock. inflation and you k coming in higher than estimated. sinces the fastest pace after clothing prices increased as well. the cio of brooks mcdonald. i want to start with the news from interfax. we hear that russia and saudi have reached an agreement on an informedeeze citing an diplomatic source. we have been here before -- it leads to the obvious question. do you think oil has bottomed? assuming we get no deterioration in the global outlook, it probably has. our view that oil price in the long-term is in a new trading range which historically is its long-term average. good news for the global economy and probably a reflection of the fact that maybe the global economy is going to avoid a recession. the imf saying a prolonged time of slowed growth has left exposed to negative shocks. how concerned are you about these shocks? guest: very concerned. high debt levels, lack of demand, excess savings are part

the imf is not impressed. the donors on this economy, saying that the numbers are not as rosy as they seem. later this week, we will get gdp . we talked a lot about japan, but we could end up talking a lot about china and that is a positive story. guy: breaking news coming through from peabody. saying the majority of its u.s. 11.ies filed for chapter more details on that story as we work our way through the story. we will get the chapter 11 details coming through. we will come back to that time.ocused business in we do have a very positive call on where we stand in terms of the european equity open. european stocks up by 1.7% this morning to london is a little bit of a laggard. it looks like the dax is going to be storming ahead on the back of the chinese data we are seeing it looks like a very positive figure. what else is on the move? hans: oil. it is up almost 13% over the last three days before today. $40.wti and brent over shanghai rallying on the back of those numbers. we are seeing a slightly weaker yen

the imf wants a contingency proposal.s say it is not part of its constitution to allow such a move. where do you stand? >> exactly. this is the debate. upfront measures. the measures needed for greece to reach 3.5% gdp primary surplus in medium term according to the european commission forecast. i would say those agreements are basically reached. this work is basically done. it still needs to be completely finalized and of formulae's. -- formalized. and what about the imf's scenario comes into place. of gdpdiscussing 2% contingency measures. a discussion not only of the substance of the measures but also on the legal form. we are ready to cooperate and work closely with the imf, greek authorities to find this appropriate legal form. guy: what you are talking about is what is already in place, that it is enough. do you think the imf should be satisfied? does it need legislating? institution has its own forecast and procedures. according to european commissions forecast, if greece measures3% gdp upfront which are already ba

leaders of the imf and world bank have pledged to redouble efforts to bolster global growth prospectsthey say they also want to combat increasing political attacks on free trade. on friday, they were joined by world financial leaders from the g20, which includes traditional economic powers like the united states and germany, as well as india and china. another issue high on their agenda is of course tackling that problem of international tax evasion. >> the g20 gathering comes amid pressure on nations to use infrastructures spending, deregulate industries, and spur employment, but it is also a chance for a world governments to formulate a response to the panama paper revelations. germany's financial ministers spelled out the task. >> identifying the ultimate beneficial owner is clear to fight tax evasion. in the future, nobody should be able to hide its activities it requires a global response.s. >> on growth, despite forecasting a slowdown in global expansion, the imf said friday that european growth will remain stable this year at 1.6%. >> meanwhile, g20 members also warned that con

concerned over imf officials handling negotiations.e are joined by the silly as -- weminus just basileus have intrigue, the rustic we have domestic politics, global politics weird what are the mechanics we are seeing? politics. what are the mechanics of what we are seeing? global politics. >> they were close to a staff level agreement. now saying we are far away from a deal. -- the fiscal targets which are set forth from the bailout. tsipras the ethical going once more. it has to do with greece's polling votes.es you have the main opposition party up by a percentage points. that has a lot to do have -- that has a lot to do now with how see brisk indicates. -- how tsipras communicates. he is not going to call another if he hasn'tcause learned anything, -- guy: the imf is being vigilant with its strategy thus far. we got two different stores surrounding greece. it is interesting to see how they are overlapping, the migration story. it is now underway in the islands. how do these two stories interact? how are they going? how does it feed

we have imf meetings later this week.end of last week, carl, there was this idea of uncoordinated intervention by leaders. can we look for that in the hallways friday in washington? > wringingwill be hand of what they can do to stimulate global growth. christine lagarde has hinted heavily there will be downgrades to the global growth forecast. april 17, those meetings, well decide the price of oil. i didhe opec meetings? not even think of that. >> negative interest rates are not looking much a viable policy tool. david: take is that to retail sales, what can we expect? is looking at .1%. that is not a good number. you will have two dramatic swings in both directions. gas station sales will be up, but motor vehicle sales were down sharply in march. that is a troubling omen as households are not willing to spend on things my cars. >> the times of london today says -- >> you are really ripping it up right now. >> i don't understand the threat to prime minister cameron. , itthreat to mr. cameron will be reviewed as well. what

you are looking at a live shot of imf president christine lagarde.nding more optimistic thing the global economy is not in crisis mode and sentiment is getting better. we will monitor this. ♪ ♪ live from london and new york. betty: i'm betty liu. you are watching "bloomberg markets." back to the bloomberg best with julie hyman. the first move is -- the first movers are not in the green. drives, company is reporting third-quarter earnings that missed estimates. they are saying demand in china was weaker than they had participated -- anticipated. the company says fiscal third revenue will be $2.6 billion. teslas $2.7 four billion. was -- the previous report $2.7 billion. steep declines for seagate. airlines are doing better did delta coming out with its numbers. more important than the numbers for last quarter, it's the fact the company may be willing to reduce capacity in order to increase revenue. that is a shift for delta. it has been increasing capacity. those shares are up better than 2% if you look at the rest of the airlines. we are seeing advan

filled will be on bloomberg went today on the kickoff of those imf spring meetings. in are next hour, one of our most popular guests in demand. jeffrey curry of goldman sachs; he nails lower for longer. he reemphasizes lower for longer. bloomberg "surveillance." ♪ francine: i'm francine lacqua in london. tom keene is in new york. we are focusing on microeconomics and finance. let's get straight to the bloomberg business flash. nejra: thanks. u.k. inflation jumped to a 15 month high in march. consumer prices rose half a percent from the year ago, the fastest pace since december, 2014. an earlier easter boosted airfares and closed prices. inflation remains well below the bank of england's 2% target, by figures suggest it is picking up after almost a year. lvmh fell to a three-month low in paris after reporting lower than expected revenue growth. it declined 2% and burberry dropped as well. recent terrorist attacks are deterring travel from asia and weighing on european sales. alibaba is looking to get growth in southeast asia. the online retail giant has agreed to buy

the imf is not impressed. the donors on this economy, saying that the numbers are not as rosy as they seem. later this week, we will get gdp . we talked a lot about japan, but we could end up talking a lot about china and that is a positive story. guy: breaking news coming through from peabody. saying the majority of its u.s. 11.ies filed for chapter more details on that story as we work our way through the story. we will get the chapter 11 details coming through. we will come back to that

the ultimate passage of imf reform was pivotal. needed to sustain our economic leadership and adapt it to the challenges of our time. we know that the global landscape of the next century will be very different than that of the post-war era. and if we wanted it to work for the american people, we need to embrace new players on the global economic stage and make sure that they meet the standards of the system we created and that we have a strong say in any new standards. the worst possible outcome would be to step away from our leadership role and let others fill in behind us. making the case for global engagement is a responsibility we all share. we must make the choices necessary to ensure both the future of the international architecture we built and america's position in it. over the last year the obama administration has made significant progress advancing u.s. leadership in the global economy. we worked with congress to secure imf reform, trade promotion authority, and the reauthorization of the export/import bank. we reached

the imf will do their part, but the books have to be balanced.ou have to find agreement that clears everyone but make sure that there is sustainability on greek debt for the future. stephanie: that is francine lacqua joining us from franklin. coming up o n , the u.s. treasury targeting corporate inversions putting into question the allergan-pfizer deal. those details next. ♪ jonathan: it is a risk off day in the markets. in fx, a stronger dollar store with the exception of one notable currency pair. dollar-yen down by .8%. a stronger japanese yen. gold up, yields down. down by five basis point to 0.0 9%. for the first% time since april 2015. stocks lower in europe and crude down 1/3 of 1% on wti. let's cross over to matt miller for some of the big analysts calls. miners out of your. bank of america, merrill lynch upgrading e.u. miners to neutral. no longer saying sell. tail risks have receded from equity markets after a recovery in commodities prices. etf is up 39%. the big mindeers in europe getting smoked today is markets fall. glencore dow

greece and theut imf has a lot at stake there.what about the global growth forecast makes the imf so influential? >> people are looking for any sign. the imf has access to information that other people may not have access to so they have that are clarity. when you see the imf reducing forecast, they are saying things are not as rosy as we thought they were the last time we updated this forecast. alix: what to you is the single biggest global risk for global gdp? >> obviously china is a big risk. there's a lot of downside risk their. re. there's a lot of debt. alix: we have known about that for a while. >> i think japan is a place where -- they have lucked out. kind of like china, most of within debt is owned japan. so they have not faced any sort of crisis yet. -- try to increase potential growth and they have not had a lot of success. this morning was a great example. you were talking about the yen. why is it suddenly appreciating? the government announced that we are going to frontload government spending to help support growth

the ultimate passage of imf reform was pivotal.ded to sustain our economic leadership and adapt it to the challenges of our time. we know that the global landscape of the next century will be very different than that of the post-war era. and if we wanted it to work for the american people, we need to embrace new players on the global economic stage and make sure that they meet the standards of the system we created and that we have a strong say in any new standards. the worst possible outcome would be to step away from our leadership role and let others fill in behind us. making the case for global engagement is a responsibility we all share. we must make the choices necessary to ensure both the future of the international architecture we built and america's position in it. over the last year the obama administration has made significant progress advancing u.s. leadership in the global economy. we workedh

there was a hint that the imf would cut its growth forecast from 3.4% to this year. the risk including terrorism were hurting growth and action was needed. >> we are growing. that is good news, indeed. the not so good news is that and its is too fragile durability is at risk. we have made progress. because the growth has been too slow, too fragile, a lot of people are not feeling it. >> it was not a good day on the european markets. -- christine lagarde did not help things. midpoint in the trading day falls to 1%. peugot is down. >> the united states, bp's settlement with the gulf of mexico oil spill has been finalized. >> they had to pay 20 billion dollars in penalties and damages. 11 people were killed in the rig explosion. an estimated 3.2 million barrels of oil's were spilled into the water. aside more than $55 billion to cover the cost of the disaster. they're waiting to finalize the settlement with individuals and businesses who were affected. >> a story about the air france cabin crew flying to iran has been resolved. >> company asked cabin crew to wear a head

the imf recently upgraded its gross saysile bill it is delusional to think china's economy is growingfast as the official numbers suggest. 2007, gdp numbers were largely man-made and were for reference only. more at electricity consumption, rare-cargo volumes, and bank lending, to get a truer sense of growth. the white line shows that in the you look ater, if the main things like electricity consumption, cargo transportation, and bank -- the, that economy economy would have only grown 2% in the fourth quarter, but the economy is much more diversified today. electricity consumption has declined and services have grown. steel and coal are now slumping. that's why we might want to look at the bloomberg growth tracker. this chart, the blue line right here, shows the bloomberg growth tracker pretty much in line with the official numbers. so, the data that is due out at the top of the next hour along with industrial reduction, maybe this data is not as far off as we sometimes are led to believe. back to you. rishaad: of course we will have analysis on the economy in china later in the progr

square that with what the imf seems to be saying.is not a big disagreement with the imf. it is correct to say that at the moment greece has no debt service payment problems because they already did things in 2012 many things. official creditors in parallel interest relief with referrals, reducing the margin on interest rate. so the national debt service came in and said that greece has to do these operations. one can look at that and provide more help, but here the eurogroup -- they were very clear -- they said we have to provide more debt relief, not haircuts but that relief, if needed, and if greece implements reforms. that is the sequence. we are waiting now to conclude the current review. at ifrogroup will look debt relief is necessary. nominal haircuts are not needed. cons: 5 -- do you see any other potential programs you will need to implement? klaus: no. these other four countries that received a lot of money from us are accessible within the markets. they are also successful in the ireland had a gain of more than 7%, spain mo

meetingthe imf spring start next week on april 15. decision by india's central bank to cut the key rate was expected by economists, but the r.b.i. did surprise markets with measures to ease of the funding squeeze. the benchmark rate was cut by 25 basis points to six point 5%, the lowest since march 2011. he also reduced daily reserve ratio requirements and narrowed and interest rate corridor to reduce volatility. analysts say these steps will help bring down costs for lenders, encouraging them to pass on the 150 point basis rate cut over the past 15 months to households and companies. the monetary policy will remain accommodative and the rbi will watch macroeconomic and financial developments in the months ahead. export record last shipments rising to 39 million tons. shipments to china rising 17% despite the country slowing economy. iron ore has staged a surprise rally in 2016 as chinese policymakers cigna -- signal their willingness. prices have sagged in the past expanded as holdings to the highest level in a most the year. it is a