without specifying so much it is seeking from the imf.they have negotiations ongoing with an imf delegation. shares and metals are jumping on the announcement of a solid set of production. the fourth quarter costs and cash costs are taking action. it slashes operating expenses. the fourth largest iron ore exporter is taking action. jumped after they fell less than projected in the forecast exceeded estimates. a slump in iphone sales in the third quarter but the new sc models aimed at china. about $47.5 billion. yusef: the founder and vice-chairman of aromatics is said to sold his entire state. he has let go of his almost 10% share with the words of the other market price. matthew martin has been following this story. i pulled up the chart for viewers. what is happening here? matthew: this is a story involving two with the most well-known business leaders in the region. he is a well-known entrepreneur who founded this company. the chairman of the bank now embarking on a whole new initiatives. bought thei bar has stake and he's also buying

to sayd the imf have about japan and the stronger yen?to boost theon japanese economy is neither useful nor necessary. they cut the growth forecast to , but did downplay the need for a weaker yen. they said it was challenging for japan to reach its inflation target and should use the available tools it has to boost the economy. they also pointed out wages and said some attention should be paid to the wage setting process. the imf chief economist says the calls for helicopter money shows the need for fiscal policy. >> it is a colorful med o metaphor, but it skewers the problem, which is conventional bearing policy has been the entire burden of maintaining price expectations and supporting economic activity. without enough help from other government policies, for example structural or fiscal policies. lower forecaste globally comes after brexit and an overlay of risks in the economy. year, 3.4% this 2017. in a severe situation, it could fall to 2.8%, therefore important to remain confident among investors. imap had been the planning to upgr

brexit has definitely chill the imf forecast. next forecast says the brexit crisis may offer good news as much you performances are met. we have a chief economist joining us now. great to have you in hong kong studio. i am curious why you say brexit to be a good thing. >> first of all, the lesson is clear. in 1992, we saw a dramatic drop in sterling and never sensed in 1992 drop, employment went up, gdp went up and everything was imprisoned. what i am really saying is that is is not that there are negative fallout in consequences from brexit, but the fact that we need to change is so implicitly ignored by the market everything will day. the fact that we spoke about this is a clear indication of this. i remember when they were pokemon cards in the 1990's. we are really just repeating the same story over and over and not getting anywhere. yvonne: we see europe divided and a lot of uncertainty coming out of this u.k. referendum, not to mention you have turkey, early -- italy. is there the political will to push for more change? >> n

discussions have commenced with imf.here are discussions continuing with abu dhabi to help build up reserves. only then can egypt have a devaluation. in addition to that, if there was one, it would not increase the flow of foreign currency into the markets, which the economy needs. there has to be other policies to go with this, i think, in addition to building up the foreign exchange reserves for any credibility to take place. be seen as a positive move. there might be in initial reaction in egypt from domestic demand. there is going to have to be new economic policies to build domestic sentiment. when we look at them pmi survey for egypt, for nine months it has been below 50. that will probably be the case for another month, if not several months, because at the moment the central bank governors let the market believe it was a devaluation based on an interview recently. that is not very good for good governance of the market. angie: what is the danger amongst the average egyptian, number one. in terms of what the gover

angie: the imf sees japan's economy growing 0.3%. steen jacobson says the boj stimulus has run out of steam. >> the fact is they can do whatever they want to do, but it is not going to change their growth or their ability because the reforms remains unanswered. this third arrow has never been launched. will never be launched. i have been to japan three times in the last six month. it is a great country. we are probably underestimating where they are in terms of the credit cycle, but boj and their ability to save the japanese colony is nowhere to be seen. angie: fred newman says there are bright spots in asia. thing that is likely better over the coming years are countries that are less trade exposed because global trade is not firing off and they are ones that have low debt because they can accelerate credit growth. the two that stand out are the philippines and indonesia. the market is telling us that. equity markets have rallied. the two countries that have the biggest scope for improvement. angie: that is the word from asia on the

and howely did the imf closely are the imf monitoring ae bad loans that represent terrific thread? >> the imf did mention it. it does need to step up its efforts on credit issues. bloomberg spoke to the imf what --ere and this is deputy director of this is what he said. >> you have a big balancing task ahead and the growth is in a .ense punting on this score it is a.m. issue that will have to be addressed in the future, we may have to tolerate somewhat slower growth to ensure credit growth becomes more sustainable. china isf also said supporting state-owned enterprises at the expense of five at firms but nonetheless they said stimulus measures have improved china's outlook and revised up china's growth forecast for the year by 0.1 percentage points up to 6.6 percentage points overall. the brexit is seen as rooted on two largest economies. 2.2% for the united states. rishaad: thinking about cleveland, ohio, donald trump juniors speaking. his youngest daughter as well as tiffany trump on the virtues of the father. expecting that. junior will continue the same thing. donald trump juni

my demo and there is guard from the imf.oin the next -- and there is a downed christine lagarde from the imf. we will join her and tom keene next hour. ♪ welcome to bloomberg markets. scarlet: from bloomberg world headquarters in new york, good monday afternoon. matt: in this hour, we are covering stories from san francisco, toronto, and new york. i am of managing director christine lagarde sits down with tom keene at the new york fed and we will show you that conversation live. scarlet: the republican national convention kicks off in cleveland today i got an exclusive interview with tom barrick who will take the stage and support of donald trump this week are you matt: plus, the ceo of pete's coffee joins us, celebrating their 50th anniversary and how it competes with big names like starbucks and dunkin' donuts. scarlet: first, let's go to the markets desk and julie hyman. i have been watching volume, about 20% below the 20 day average for the s&p 500. you can see markets are trading a little higher but you can call it a si

the imf is notorious for being a little rich in their forecast. we have seen now, as i think was mentioned earlier in the last show, four consecutive meetings where they have lowered their forecast, and the forecast that came out today, 3.1% for 2016. that is equal to last year's level, and the forecast was made before the turkish push happened. we have not considered what the impact of that could be for the global economy. we expect the numbers could be lowered further, the number could be 2.7% for the year when it is all said and done. vonnie: what are you anticipating for the u.s. -- most guests say the u.s. will look better, but how much better will it really looked? -- at the end of february i had a book out called "recession-proof vonnie: there you go. mr. schenker: that is right -- we think growth will come to a halt, and we think average growth will be 1.4 with a recession next year. we see slowing. concerned about the linchpin for all those being very critical for the u.s. economy. see that slowing. oil prices, we see moving lower, fallin

the imf cut its outlook for the global economy. fallsglobal most heavily on the united kingdom. the imf lost a full percentage point from the 2017 projections citing the brexit vote. maurice i spoke with obstfeld. maurice: it creates an overlay of risk in the global economy on top of pre-existing risks. central banks are taking a cautious attitude, entertaining the possibility that interest rates may stay lower for longer. why did you only down greater global growth forecast buy .1% given that you've downgraded you caved so much -- much?'s a much julie so maurice: it will have to completely renegotiate with the eu and the world trade organization. it causes businesses to think about investing in u.k. as opposed to elsewhere, it might affect the financial services industry in london. for the u.k., it is a huge deal. , it is significant. -- broad context of the global economy, based on , it may be have now more of a moderate effect. that explains our baseline case by a we downgrade growth percentage point. vonnie: you said you do not

i feel the imf would want the markets to be a look at more free.hink devaluation is probably on the way. yusef: we've seen quite a bit of euphoria when it comes to the egypt story. that easing as well. has something fundamentally changed in the egypt story for fundamental investors. is the imf decision what this hinges on? >> the devil is in the details. markets usually act in advance of headlines. it is an expectation. thegypt we've seen government fails to deliver it historically. i would rather still wait-and-see. you said: there's plenty to get through. let's cross over to angie. all-outt obama has gone he is ready to be commander-in-chief. it has cleared up behind you. still the speech by president obama. it was resonating with the people in the hall. president who ran on a message of hope and change. to lay the battle lines for the general election saying that donald's rhetoric is heisive and criticizing him also praised hillary clinton. try to give her a boost. he wants to boost those trustworthy numbers which are low here in america. that's

i think from the imf perspective.gely kerning -- the large emerging market economies, they have a legitimate space around the circle of nations. certainly a needed response to the global challenges we are facing. it cannot be a zero sum game. much broader. olivier -- stunned me the other day by calling helicopter money a scam. are we exhausted by our creative policy? you have been the adult in the room on same many of the strategies won't work. moneyou hear helicopter how do you react? what do you do? christine: he is a fantastic counselor so i will turn to him. notion, whicham is provocative as it can be in some occasions, is to say this is fiscal stimulus to the extreme. at this point in time i think you would agree with us. some countries have some fiscal space. they would recalibrate and redesign their fiscal policies. soon people can actually find meaning, get a job and have a decent income. scarlet: fellas an interview with christine lagarde. tomorrow we will speak with chief economist -- on the world economic r

for more on the imf forecast, catch bloomberg's interview with the imf chief economist at 10:30 easternt goldman sachs seem to be paying off. we will take deep into the banks milani aand later, trump stole the show in cleveland but not for the reasons the campaign may have wanted. this is bloomberg. ♪ alix: time now for futures in focus. this is "bloomberg ." this is the charge that you need to know when it comes to oil. i trading close to average. dubai is a good reflection of middle eastern oil prices. when it gets higher, it means that prices are more expensive than in the future. when it gets lower, it means there is price weakness and that is what we are seeing now. doyle --ontango in the in the dubai oil prices. that means we are seeing weakness in asia. that is weighing on oil prices. focusing so much on supply but it is demand that is coming in front and center in the third quarter and some of the signs is not -- signs are not so great. you heard me make the case for weaker demand in asia -- what do you think of that? >> if you look at oil, i think it is a range. chinese imp

the yencats doubt on ahead of it joining the imf global reserve.e party chair to quit over claims of pro-clinton bias. we will be live in philadelphia. fromme to "daybreak asia" hong kong and streaming on mobile and bloomberg.com. happy monday to you. i am in yvonne man. we have that record high it from the s&p 500 on friday, and asian markets are taking the cue and running with it. the risk on rally continues. the nikkei up 2/10 of 1%. importantly, that surplus in june to beat estimates. coming online --kospi coming online. , a bit offlat downward pressure in some commodity players. that is where we could see some weakness. have a look at new zealand. it rallied last week to a record high, up a quarter of 1% on early trade. it is holding on to record highs and is showing that bullish sentiment across asian equities. show you theo currency movers and commodities week are watching. -- we are watching. it is all about dollar strength. the dollar pushing through that 106 handle to the japanese yen, the japanese yen weaker by 2/10 of 1%. that is one sy

would be a condition of the imf would put on some of this loan.across lots of political barriers, when it comes to in limiting loans and negotiating with the imf. but bloomberg couple of months ago announced a story that egypt was in talks with the imf. but the most important thing is that investors are happy, saying this would be a positive step for egypt, a step that egypt needs to encourage investors and bilateral arrangements around the region. but most importantly, investors are still also saying it is a matter of yes, third time lucky. or we will believe it when we see it. investors are standing by for this announcement. if it does come, the imf delegate will be in cairo in a few days. manus? manus: desley, thank you very much. on the very latest deals. anna: the democrats have formally nominated hillary clinton for resident, making her the first major party nominee. in a further call for unity vermont senator, bernie sanders took the stage of the democratic national convention to ask for his former rival to be unanimously backed as the cand

and imf am -- delegation has arrived in egypt. is hoping for a loan to shore up its flagging economy. market has been lots of euphoria. default swapsdit still fairly stable for those five-year benchmarks. pointight be the sticking as in egyptian authorities and policymakers go into meetings. points. controversial chiefly, the devaluation. a near consensus it is undervalued. even the central bank governor the valuet defending of the pound over the past five years at the expense of the dollar resources had been a grave mistake so he was looking for another round of devaluation. to what extent, is it going to be gradual and how would the egyptians react, because as you know this is a hot topic. people are watching the black market trades. be one of the controversial points and there are other issues like electricity subsidies and how far do they go and how gradual do they go and how well each of to be able to heal those who need the subsidy in the short term because they are needs to be immediate measures of these are two sticking po

her job is imf -- head of the be ok.ms to enjoys strong global support. ministers guilty without having them actually serve jail time. torrential rain sweeping through china has killed 154 people. reportedhe casualties from the north and -- northern province were villagers complained about lack of warning before a flash flood. it came to light through social .edia posts of villages angry officials claimed they had been no deaths. the islamic state claimed responsibility for attacks on afghanistan's capital in 15 years. the suicide bombing on a peaceful protest in cabell killed 80 people. it is the first time they have struck the city raising fears of their strength and capability in afghanistan. global news 20 for hours a day powered by 2600 journalists and analysts in 120 countries. the secretary-general says is making turnabout brags it is how to get it done with the least disruption possible. speaking from the finance meeting, he says it depends on how the u.k. decides to leave the european union. >> the primary risks will stem .rom the implementation

two months ago, the yuan will be included in the basket of currencies for the imf.lyst casting doubt on its ability to achieve haven status. we are following this from shanghai. another setback for the yuan after years of questions over its credibility, right? as you say, the timing is unfortunate. we are two months away before the yuan is officially added in that basket of currencies. away from thats august the one year anniversary, so the market feeling jitters there. umult.e had some tom has made progress getting close to pseudo-safe haven currency status. the pound, the yen, the dollar tend to rise in uncertainty measured against market volatility. over the past year, swings became larger and the yuan has underperformed and let go of some ground it made in the last five years. the portion of yuan global payments also receded to a 2014 so globale, 1.74%, usage component is not looking good. ,he take away from this study this certainly suggest the yuan is nowhere close to being a safe haven currency, and more importantly, it's progress towards becoming a safe have

the imf will be updating its economic outlook next week.ent backing is the ubs is finally the right size after many recent job cuts. so says at least, the division president. he spoke exclusively to bloomberg. >> at this point in time, i think we are exactly where we should be to face the environment we have, to fa ce the regulation that we have, to face the forces that we have. at this point in time, our challenge is to execute correctly what we have in front of us. and i think the firm is very much focused on doing so. david: the eurogroup is resisting calls for money to prop up trouble banks by almost 360 billion euros of nonperforming loans. thathairman insists such problems need to be solved by the banks themselves. >> the rules are set. theit is ain the hands of supervisors and the authorities to work with those rules and the opportunities they have to find precise solutions. any solution for an italian bank needs to be very specific within the framework. david: global news 24 hours a day, powered by 2600 journalists in more than 120

manus: imf chief christine lagarde, sitting down in an exclusive interview with tom keene.ll have more on the exclusive one-on-one throughout the day on bloomberg. anna: bond trading revenue increased more than analysts had expected. manus: goldman sachs is next to report. we now have a preview. when we look at this, it has been quite a tough reporting season. what are we expecting from goldman sachs today? theire it is about customer complexion, versus everything else? >> with those three banks use the an increase over fixed income trading. they gained from the volatility around rbexit. -- around brexit. so, a lot of people will be looking to see if goldman sachs will be able to gain in the same way. anna: what has the common theme been for the reporting season? theme is thatmon this was a big ruling on the front -- a bit grueling on the front foot. everybody is watching to see if these guys can come back with some sort of a rebound. manus: let's bring in david stubbs from j.p. morgan asset management. has alreadytion undergone this. net income in american banks is expecte

the reason, the imf says is mainly due to the fact of the brexit. imf warns that growing uncertainty across the single currency bloc will harm confidence, increase market volatility, and spill over into other economies. meanwhile there is the ongoing refugee crisis, only adding to the uncertainty. obama hasarack loosened ties with cuba, there has been an 84% visitors spike. this number could rise even further. the u.s. has tentatively approved 8 airlines to fly to havana as early as autumn. american airlines has been given the largest share of the limited routes. once an arduous journey, now traveling between cuba and the u.s. could become simpler. on thursday the u.s. transportation department gaqve approval to 8 airlines to fight directly to the communist island, which could take off as early as autumn. >> it's positive. we should have more flights. reporter: while the u.s. -- they were limited to charter services. >> people who live far away in the u.s. need to do part several days before, like my son per you lives in texas and had to depart seve

the imf still believe there is a chance for economic downturn.after the brexit, the imf had slashed its outlook for global growth to 3.1 this year and 3.4 for next year. may not sound like much but it is tantamount to hundreds of billions of dollars. it says the uk's will be the worst affected of all advanced economies revising down this year's forecast to 1.5% and shaving almost a full percent off next year's forecast down to 1.3%. despite the low number is, the british government is keeping at school. lundy -- keeping its london says it will not rush into formal exit negotiations. philip hammond faced parliament for the first and since he became british finance minister. he revealed there will be no major fiscal policy decisions until the end of the year statement. it is clear that the referendum decision represents a shock to the u.k. economy, thanks to the actions taken over the last six years by my predecessor, it is well-placed to respond. i will work closely with the bank of england to provide immediate stability and to maintain confidence

it says the imf should have been more realistic in its assessments and that would have allowed countries to prepare better and possibly to have received more financial aid. back from the brink. british luxury carmaker bristol unveiled its first cars and the company was rescued from insolvency in 2011. there will only be 70 models of the new bristol bullet, one commemorating each year the company has been making cars. it has a sticker price just under 300,000 euros. here is the company director speaking. >> it is a very emotional car for all of us. carbon fiber body, looks to die for. is is -- it is a special commendation. we will move forward with electric and hybrid technologies in bristol, but it is a celebration of the last 100 years of bristol. this car is a very special card for all of us. william: all caps on eatery in london claims to be the world's pop-up-d printing -- a eatery in london claims to be the world's first 3-d printing restaurant. 3-d printer -- the chairs, the cutlery, the plates, and yes, even the food. you have to be one of the lucky few. only 10 guests per night d

on tuesday, the imf releases its latest nap shot.croeconomic forecast saw global growth of 3.2%, rising to 3.5% in 2017. christine lagarde says there is little hope the forecast will be revised up, and a new development bank is due to hold its first general meeting in shanghai on wednesday. st was established by the bric countries and will contribute to infrastructure development, making clean energy a focus. gambling revenue hit a new low in macau for the second quarter. the mass-market segment remain steady. adding tos non-gaming attractions. placeing of g-20 takes next weekend, the third such gathering this year while china holds presidency. the meeting comes with a spotlight on central-bank actions in the face of global volatility. a busy week for corporate results in the u.s.. we are expecting economic data as well. su keenan has more from new york. >> the week ahead on wall street will be all about where do stocks go from here. investors weighing the potential for further gains with stocks trading near records, also corporate e

you know the imf came out the revised outlook and that was down.at the picture for 16 and 17, it looks like once again it will be a downgrade. that is very unfortunate and we would like to be able to come with better news at these times for the does not seem to be enough on the horizon. mark: dizzy among the winners, posting profit that beat estimates. the carmaker has been cutting costs to become more competitive here they also benefit from an increase in sales in china. a slump in brazil and russia. bp is the first major oil company to report second-quarter results that were disappointing. profit fell 45% missing estimates come -- estimates. some prospect for relief was provided. sweetened its offer for sab miller, the new price is $103 billion. that means investors would get dollars -- $1.30 per share. vote. wake of the brexit porsche would add 1400 jobs to take context the -- take on tesla in the battle of jobs. the automaker will spend more than $1 billion to develop its first battery-powered sports car in 2019. time now for the quick take, we

the imf lowers its growth forecast. chief economist will join us to tell us what impact brexit has on the outlook. this is lumbered. -- this is bloomberg. ♪ [hip hop beat] ♪olympics 2016, let me get you on my level. ♪ so you never miss a moment, ♪ ♪miss a minute, miss a medal. ♪ ♪ why settle when you can have it all? ♪ ♪soccer to wrestling. track and field to basketball. ♪ fencing to cycling. diving to balance beam. ♪ ♪all you have to sa♪ ♪ is, "show me," and boom it's on the screen♪ ♪ from the bottom of the mat, ♪ ♪ to the couch where you at? ♪ ♪ show me the latest medal count♪ ♪xfinity's where it's at. ♪ welcome to it all. comcast nbcuniversal is proud to bring you coverage of the rio olympic games. vonnie: live from new york and london, i am vonnie quinn. >> you are watching bloomberg markets. let's check in with bloomberg first word news this morning. >> thank you, the islamic state is claiming responsibility for an attack in germany. passengers described as a 17-year-old from 10. come at least twice its people were

producedrlier, the imf a bit off the global growth forecasts. it did bigger damage to the u.k.t then certainly the rationale behind that is underscore today by the pmi reports that you saw which showed that big slump when you take manufacturing and services and for them together. nejra: that report is one of the first indications of the impact of brexit, not just on the u.k., but on the eurozone with the flash pmi we got. , isbig question here is that just a post-break the reaction, were a sign of further weakness? simon: we will have to see. the office of national statistics said it will take until august to fight out of the hard data is going to show a similar problem that we saw today. certainly, the confidence indicates they're the ones that come first do not suggest a great path of the u.k. economy. vonnie: what about the g-20? what kind of communiquÉ can we expect? draft obtained this afternoon seems to point to some confidence that they can whether this any storm from the u.k.. when you look at the global growth forecasts produced by morgan stanley and the like this week

the imf is cutting its growth out again on the brexit vote on the world economy.e'll speak to the chief economist soon on cnbc. >> plus, the rnc kicking off with controversy over charges of plagiarism. we've got the latest and what to expect on day two. >> also ahead on the show, netflix plunging as subscriber growth slows drastically, what it means for investors now ahead on the show. >>> coming up, the vice president of the european commission, his thoughts on brexit and if turkey could become a member of the eu. plus, the former u.s. ambassador to turkey, robert pearson will join us with his view on the coup. and we have a slew of speakers, including donald trump's wife melania and what is ahead for day two. we're joined by john from cleveland. >> reporter: good morning, carl t. started out well enough, the melania trump speech. the showman donald trump, walked in, with a haze of smoke, and introduced her. the problem came from passages in the speech that were lifted from michelle obama's 2008 convention speech. take a listen -- okay. i'm told we do not have th

they oh money to the imf, the $601 million to the african development bank.ng of the end for skins gambling. videogame maker valve is walking away from the growing world of online gambling, a major component to its games. a crackdown on websites that use steam could cause a loss of 7.4 billion dollars in that's this year. us how this economy works. we are talking about skins, which are virtual items you get playing the games. what is the gambling infrastructure? evan: a few years ago, valve started selling in game items called skins. you can think of them as colorful guns or knives players can use during the games and it did not take long for these two of crew -- to accrue real value. this year in 2016, 7 .4 billion dollars of skins are expected to be gambled. that gives you a size of the overall market place and all of this was happening on valve's software and for the first time, valve is speaking out and essentially shutting these websites down for top scarlet: what was the catalyst for valve to suddenly discourage gambling on its platform when it had allo

election because the imf warned on the consequence of a brexit but they voted to leave anyway. we are seeing a similar rhetoric coming from donald trump, re-declaring independence on trade, immigration. how does the u.s. election impact the u.s. economy? nigel: we do not see a large effect but what we have tried to do is look ahead to the new administration and the forces that will face the u.s. economy in the coming years. we think it is important. these are an increasingly -- and a declining labor force participation. we think these are the forces that will need to be tackled. scarlet: that is a pretty long to do list. i know we talked about brexit already but how do you fold in political disruption and uncertainty, whether it is the upcoming u.s. election or external events like rex it or something in -- like grexit or something in asia -- brexit or something in asia? nigel: it is difficult to quantify. we do not have a straight quantification but we do feel there are downside risks to the u.s. economy although we have a relatively up eight forecast. shery: and all of these

in the past to imf.ey from the imf. stuart: so absolute collapse. liz: yes. stuart: very close. liz: it's the collapse of socialism. worse than a what's going on in terms of inflation in syria struggling with war. stuart: you're right. thank you. liz: sure. stuart: turkey's president vows to punish military officers who stay to coup against him. report of officer being tied up prettied through the streets half naked, humiliation. there's also talk of bringing the death penalty in for some of the plotters. general jack keane is with us. general, welcome back. good to see you again, sir. >> yeah, good to see you. stuart: what does this mean for us? ordinary everyday people in america. why should we care about a failed coup in turkey? >> well, first of all, turkey itself. it's a country of strategic importance. it sits right there in the southern flank of europe. it's part of nato. it's on the border of europe and asia. it has significant impact on the middle east. it is one of the most powerful militaries

didn't stop the international monetary fund f the imf sees an increase of more than 3%. that's lower than previo e main reason for the cut -- britain's vote to leave the european union. >> the brexit effects will play of many months as the e.u. and europe negotiate a new agreement. so, you know, i think one is always surprised by what stock 'rt central banks maintain int slightly upgrade its efor outlook. >>> antitrust officials are reportedly close to filing lawsuits to block the planned mergers of anthem and cigna and aetna and human that. as first reported by bloomberg, the justice department is concerned that the deals would harm consumers and stifle competition. if both deals were to go through, the top five health insurers would be reduced the proposed aetna and humana is examining the d future of driving. the autonomous vehicle summit is bringing together leaders from the automotive industry to bill lebeau is in san fran >> reporter: with 14 companies including several automakers there'sng and t no doubt that the day of the self-driving car is approaching. in fact

the imf called it the worst threat to the world's banking sector. stocks surging after being down in profits. withstanding the ability for economic shocks. to help boost european shares in general this friday. ecb has approved a lifeline for one of the lenders. the financial institutions are overloaded with bad loans. it is a debt pile of 47 billion euros. they have received approval. fun for doubtful assets. the u.s. economy is growing more slowly than expected. the second-quarter growth rate will equivalent to 1.2% annually. there wasn't any growth, consumer spending shot up by a full 4% in the second quarter. the company is much more cautious. they slammed the brakes on investment. they see the u.s. economy performing below expectations. no wonder the federal reserve didn't go for an interest rate hike. >> at this point, it might be a little silver lining. it might be some expectation that we might see a pickup in the u.s. growth in the first or third quarter. the switch a huge disappointment. the stronger darl or -- dollar probably hurt corporat

the imf estimates that a financial transaction tax of 0.1% which is a 1/5 of the parties proposal in the campaign would reduce market values by 7.6%. if you translate that to a reduction of wealth, it means a family that would amass $250,000 of assets for their future would see the value of those assets decline by $20,000. that is why how broadly we make this tax needs to be worked out. i urge you to stand behind what the brilliant drafters did and defeat the amendment. >> anyone else wishing to be heard, we will do this on white cards. everyone who is in favor of the amendment to raise your card. everyone who is against the amendment, race your card. have won.nst we will take a very short break. hang on. there is a reason. to cochair and i have asked have a meeting with both campaign staffs. it should not take long. a break to meet with those campaign staffs, i would like to do a quick survey. how many people in the room would like to complete the double -- their deliberations tonight or the early morning hours? we will go have a meeting and we will be back very shortly. don't wonde

imf is not the only organization down on the global economy. global forecast, saying that despite improvements too many economies remain fragile. they are not making enough progress to stand on their own. catherine mann tells bloomberg there is little reason to be optimistic that the next year. .> we are doing revisions the imf came out with their revised outlook. that was down. when you look at the picture for 16 and 17, it looks like it will be a downgrade. very unfortunate. we would like to come with better news, but there does not seem to be enough on the horizon. mark: a busy earnings calendar. among the winners is the first half profits that beat estimates with the biggest tire maker cutting costs to become more competitive. michelin benefits in an increase in car sales in china that offset a slump in brazil and russia. major oilfirst company to report second-quarter results that were disappointing. -- fell 45%.45% the brent 25% increase during the quarter provided some prospect for relief. anheuser-busch and inbev sweeten .he offer for s

the halls in the imf are filled with economists much better than i aspire to be. most would say a lot of factors go into trade balances and current trade balances for relative growth rates. so it is hard to pinpoint and particular the impact of a trade agreement on a particular balance. what i would say is, since our average applied tariff is 1.4% and i will give you two examples. we face 70% tariffs on automobiles and tpp countries. 70 5% machinery. on pork. up to 100% on certain agricultural products. all of which could be eliminated or greatly reduced and we would expect to see more exports. we would lower our barriers very little. other countries would lower there is in a much more significant way and at the same time, raise standards. host: in the back there. murray. questions.quick one is in the light of the bretton woods conversation, the plural lateral agreement seems to be in contradiction to the whole philosophy of the wto organization whereas by avoiding or not using the wto forum. the second question is concern about the state dispute resolution mechan

so, you have nato, you have g.a.p., you had the marshall wto, the imf.obody knows what any of these entities do. why are we paying for them? it's all foreign policy. it's all foreign policy related, and our foreign policy doesn't work. so, i think what he's doing, in a smart way, is saying, "look, i'm throwing a little bit of fire, and i know, into the frying pan, and people are going to be concerned, but them being concerned is a good thing." charlie: you are saying, well you think he understands the issues, he also understands the value of inflammatory rhetoric. tom: absolutely. charlie: because that will create a discussion. that is what he wants in the end. it's a negotiating tactic. you start not with what you think you'll get. tom: sure, because you are negotiating with bureaucracy. when you go to negotiate with nato or g.a.p. or world bank or the imf or the wto, they are now huge bureaucracies themselves. they are not going to erode themselves. at a time when we are sitting here saying there is no way out of entitlement, how do you reverse the bud

also the imf just released a report on the u.s. economy. let's get a recap of all of it with steve liesman steve. >>> growth is going to be somewhat above trend over the next couple years but it's stressing downside risks and worrisome challenges ahead. you can see here the potential about 1.9%, we'll remain above that in '16, '17, and '18. the fund worries short-term about the fallout from brexit, and brexit volatility. younger term, the u.s. economy could suffer from aging population, aging infrastructure, and the aging middle class. if left unchecked, these forces will continue to drag down potential and actual growth. diminished gains and living standards and worsen poverty. urging the u.s. leaders to take on these challenges and addressing high public debt levels and aging infrastructure, also they supported the go-slow approach for monetary policy. several fed officials spoke in the recent days as sara indicated, including st. louis president jim bullard. he says, do you know what, i'm sticking to the 0.63% fed rounds rate idea, good

. >>> the imf outlook as dampened investor sentiment, set another record high, the key index has gone up for eight days in a row now, that marks the longest winning streak in three years. let's see what's happening here in tokyo this wednesday morning. we're going to go to rumi who's at the tokyo stock exchange. tell us what you're seeing. >> reporter: it does seem like the markets are edging higher and some of the volatility has eased somewhat, in fact analysts pointing to a very key volatility index, known as the vic, which is now at its lowest level in a year. so let's have a look at how the nikkei and the topix are going along, we're seeing a touch of profit taking, former dollar, however, still may underpin some support for japanese export related shares and reports from some of the major banks has also eased some of the uncertainty in the financial reports. here however, soft banks buyout of chip design holdings has really focused the market players. it has given it a bit of a negative result so far, pushing shares down over 10% yesterday. interestingly that deal had the biggest

the imf this morning saying they are concerned about urgent action in terms of bailing. just a blind run 80 percent. just stabilizing around 18 percent. there is a huge weight of bad debt. larry: if we think about brexit and sanctions against digital in spain and think about the italian banks, by the way not just a tyra banks, others as well, i far and away the biggest challenge is the banking sector. indeed, if they do not fix the next six months that will be the biggest challenge thereafter. thorny really a big issue in the sense it will not go away. too many bad debts and too little capital to support the sector and yet the resolution mechanism, they banking union couldadopted by the eu, potentially be destabilizing for italy politically but potentially destabilizing for the banking sector in being economies and the rest of europe including france and germany and being able to resolve this banks without creating those sorts of destabilizing issues is, it seems to me, paramount for the eu to address and i am shocked they are not addressing it. anna: you were shaking yo

in an exclusive interview with bloomberg the imf chief christine lagarde says quick action by turkishnk in the financial authorities have taken very immediate and very concerted measures to avoid an economic and financial disruption. we could have had that. all of us were on alert monitoring the situation. making sure that they took the right measures. i think the turkish authorities have all reacted very strongly and in a concerted way to make sure there would be liquidity available and the banks could it is down by about 3%. the currency of turkey. there was an orderly functioning of the markets. angie: he is the managing director and research at arkham capital. given the regional instability it is very common but it is being absorbed back into the markets. how did that play out regionally for banks? think when we look at the middle eastern banks we can see the qatar national bank was just buying one of the largest banks. it has a significant exposure to turkey. these were the banks to watch. yousef: what is going to give us more clarity about the health of companies in this sector?

so you know, i think certainly the imf figures there is really nothing hugely catastrophic.t significant one of the major economies. manus: let a circle back. there are headwinds in emerging markets. when you sat down on the set does before 6:00 a.m., we checked where the dollar-lira was. this is the interesting point. just a little bit away from the record low. this is the chart that yousef was using your we went to rip the currency. currency,xt for the one of the worst performing over the last five days, that and the argentinian peso. is it purely political? derek: yes, an awful lot of what is negative about the moment, and even before the attempted coup, was the political risk. that really came to the fore after the resignation back in the beginning of may of the front minister. and that change the investor focus, much more significant on policy. focus, much more significant on policy. the consensus of the market was that, i think, obviously given what happened during the obviously given what happened during the weekend, we will have to change that considerably. i go back

you have the imf. nobody knows what any of these entities do. and why are we paying for them. it's all foreign policy, right? it's all foreign policy related. and our foreign policy doesn't work. so i think what he's doing in a smart way is saying look, i'm throwing a little bit of fire, and i know, into the frying pan. and people are going to be concerned. but them beings concerned is a good thing. >> rose: you are actually saying that while you think he understands the issues, he also understands the value of inflammatory rhetoric. >> yes, absolutely. >> rose: he gets it. >> totally. >> rose: because that will create a discussion. >> yes. >> rose: and that's what he wants in the end. >> exactly. >> rose: it's what he came out of nshting tactics. >> yes. >> you start not with what you think will you get. >> sure, because you're when you go to negotiate with. nato or with gat or with the world bank or the imf or the wto, they're now huge bureaucracies themselves. they're not going to erode themselves. so i think at a time where we're all sitting here saying there is no way out

you have the marshal plan, you have the wto, you have the imf. >> rose: right. >> nobody knows what anythese entities do, and why are we paying for them. it is all foreign policy, it is all foreign policy related and our foreign policy doesn't work. so i think what he is doing, in a smart way, is saying, look, i am throwing a little bit of fire and i know into the frying pan, and people are going to be concerned. but them being concerned is a good thing. >> rose: so you are actually saying that while you think he understands the issues he also understands the value of inflammatory rhetoric? >> yes. absolutely. >> rose: so when he has all of these names and calling hillary clinton crooked, calling ted cruz lying ted cruz, and all of the things that he said, and even when, what he said about john mccain, does that have a purpose? >> look, he is a friend so i can disagree with him. i don't personally like any of it, and the reason i don't like any of it is he is better than that. he doesn't need to go there. >> rose: joining me now is roger stone, he is a republican strategist and a long t