francine: up next, the imf wrapup.eene joins us in new york, and we wrap up the best interviews. this is "bloomberg surveillance." keene waking up in his apartment block and flying into the studio. ♪ francine: i am francine lacqua here in london. this is "bloomberg surveillance." shortly, we will be joined by tom keene as we kick off this new hour. first, markets lower this morning. let's head to mark barton at your terminal for an asset check. ,ark: this is the stoxx 600 0.4% lower, the longest losing run since september 14. banks are down, led by deutsche bank. negotiations with the department of justice to resolve handling of mortgage-backed securities are continuing, according to people familiar with the matter. in light of the second debate last month, the red line is donald trump's average poll according to real clear politics. a white line is the peso against the dollar. the peso is seen as a proxy for trader views on trump's prospects. as the polling rate comes down, the red line, the peso has been rising again

as the imf already said on wednesday, she suggested deutsche bank needs to review its business model make sure it is a valuable. also she suggested that the german bank should get into a final agreement with u.s. authorities sooner rather than later. some concern on her part. the one who did not want to comment on deutsche bank was germany's minister of finance, who participated in a debate about the global economy in washington. helena: thanks jose. now, is it some sort of epidemic or an unofficial strike, because so many cabin crew members have called in sick. the carriers had to cancel most of their flights. two flights completely scrubbing their flights, infecting some 9000 passengers. they canceled half of their scheduled flights on thursday. air berlin scrapped 90 flights. it is widely thought that this sick-out is a protest. that is the latest from the business desk. chris: a quick reminder of our top story. more than 100 people are dead, there's also widespread devastation in haiti in the wake of hurricane matthew. rescue efforts have been hampered due to flooding. ♪ [caption

the imf is a cheerleader for globalization. one of the most successful organizations pushing for it since it was formed, and suddenly you start to see politics developed in different parts of the world that seemed to be the antithesis of globalization. whether it is brexit or support for trump or the right-wing parties in europe. all these things are unsettling for international institutions that in the past, have enjoyed the support of western government. so these are the big questions for the imf to be worrying about. cover central-bank stay in and day out, what do you make of the market reaction? we had a bloomberg story yesterday saying there would be tapering, they haven't said they will go beyond march, is this why the markets are uncertain about what comes next? stephenwould agree with that if you look at the data, you have to believe the ecb will continue with the stimulus for a long time to come. the data that came out today was weak and inflation data is weak. and the nervousness of the market suggests that if you red

the delay at this point is in terms of the imf agreement. they want to see a further boost in fx reserves. we know they have received a lot of bilateral financing from the world bank and also the gcc. they want to boost reserves before making a move. think the bank is going to come through with the devaluation? i was looking yesterday at what is going on in nigeria. resident with a similar situation. a decline inen -- foreign reserves and the bank was forced to free float the currency. it has not helped the case of the currency. liquidity is not widely available. it is a weakening from day to day. might that have been a precursor for the egyptian central bank governor to say, maybe this is not such a good idea? >> i think it is inevitable they are going to devalue. the imf agreement, they are going to need to loosen their controls. you bring up a good point with nigeria in that a devaluation, it is not going to be a silver bullet. you cannot devalue your way to prosperity. part of the problem with the , that is my fear right now. the black m

so what does it mean for the imf? it means if we want to address the inequality issues we need to have a strong international safety net so that countries that feel at risk because of policies determined elsewhere have the tools and financing instruments to respond. in this context, i am pleased to note our board is in the approved the extension of zero-interest rates on all concessional facilities until 2018, and thereafter if interest rates remain low around the world. and that is important for low-income countries to be able to absorb the shock without going to the international market relying on bilateral lending that can be far more expensive. thatpleased to announce the membership has responded very positively to my call to maintain the overall lending capacity of close to $1 trillion by expanding access to bilateral borrowing agreements. the new agreements that are being signed this week will run at least through the end of 2019 and will continue to serve as a third line of defense. as you know, the first line

meetings andf imf meetings into saturday.y focusing on florida and a nasty hurricane with our first word news. is likely to be the strongest storm to hit the u.s. in more than a decade. hurricane matthew battered the east coast overnight with high wind and heavy rain. it is supposed to track along the atlantic coast. it has been downloaded -- downgraded to a category three, but 2 million people were told to evacuate. damage could total as much as $50 billion. the nobel peace prize has been awarded to the colombian president who helped decade -- who helped broker a peace plan. he is now in negotiations trying to salvage the deal. russia is warning the u.s., do not attack president besides forces in syria. any airstrikes controlled by the syrian government would be seen as a direct threat against russian troops deployed in the area. the u.s. ended one-on-one talks with russia over the civil war in syria. a report that a group of high-level defectors will establish a north korean government in exile, living in the u.s.. they wou

the imf typically does not get involved politically. even now, for instance, christine le guard weighing in on trade. they're careful not to make it a global issue. >> we've dealt with the sort of big recession, the financial crisis in 2008. but the geopolitical recession is really just picking up steam. tha that's about a lack of global leadership, it's unilateralism of everyone else, the anti-establishment tendencies we're seeing makes it difficult for them to do their jobs. if they're not able to address the politics in their mandate, then they won't be fit to create the kind of stabilization we desperately need from these organizations. if they won't do it, the chinese is more than happy to pump a bunch of money into countries, but they won't have the stamina that the imf was created to support. >> you said the cooperation that has existed since world war ii is starting to dissolve right now. we're seeing that. how does the imf deal with that. they are, in essence, a political body. how do they deal with the politi politics? >> righ

of 152e: the imf figure trillion.re delighted to welcome next guest dealing with exactly those issues. mr. gaspard, thank you. we are delighted to have you here. i'm not sure what worried you the most. i know you say you are busy and you do not worry, but markets and politicians should worry a little bit more, should they not? >> no, they should be aware of the risks, and they should realize they have the tools to manage the risks, so there is a and strong call for action, mainly to get rid of this idea that we are in a week and very fragile recovery. we need to make our way too strong, sustainable, inclusive growth. we need policy actions. do you do with policy action if you get a global list -- lift in interest rates? last week how everybody has been wrong except the imf on .igher interest rates what does that do to the calculation you have on 150 trillion debt? >> if you look at market market-basedor expectations, which is something i know you do every a, several times a day, you actually see that the revision of m

tom: i'm going to speak with feldt with the imf.th african rand has been on a tear of propitiation -- tear of depreciation. the circle is 1994 in south africa. how important of a tool is currency depreciation? pravin: not an active tool but it does provide benefits to the nasdaq shrink sector. the flipside is if we relied too much on imports, that introduces cost pressure into the situation. import fuel and oil. that also is a push back in our economy as well. on the tourism side, has been a huge benefit with a 14% increase in tourists. that will continue if the rand is around 13 rands or so. tom: pravin gordhan with us, the finance minister of south africa. sterling is really front and center today. i have not looked at sterling-rand. weaker pound7, overing and dollar well 196. this is bloomberg. ♪ "surveillance," we are focused on sterling under a 1.28 handle. to our business flash. deal betweentative southwest airlines and its pilots may be in jeopardy because delta airlines is a pending a deal to pay its pilots more. southwest p

there's been a delay to the imf agreement for two reasons.ne, egypt needed to secure around $6 billion in bilateral aid before the imf would sign off on that. trying to find $6 billion isn't always easy. from what we know, they are coming quite close right now. number two, some important reforms haven't been passed. the first would be energy subsidies. those need to be removed or rolled back. the devaluation of the egyptian pound. i don't see the imf effectively signing off on this agreement before the central bank moves and devalues the currency. angie: interesting, china's trying to get in on that. thank you so much for that. later on in the show, the outlook for qantas turns gloomy just two months after it announced its first dividend in seven years. details from sydney, next. this is bloomberg. ♪ manus: welcome back. you're watching bloomberg. i'm manus cranny in dubai. angie: and i'm angie lau in hong kong. four central bank's are deciding on rates this week. let's look at how their decisions may impact currency markets or vice versa. ,o

angie: the imf as to the gloom surrounding turkey's growth forecast.ousef: stocks and bonds fall talks, plus new speculation of a hike this year. week: and less than a after the controversial 9/11 bill, saudi arabia go searching for american cash. yousef: it is a clock a.m. a.m., i'vet is 8:00 yousef gamal el-din in dubai. angie: welcome to "bloomberg markets: middle east." it is a bit of a mixed market in the asian session. one thing we are watching is that -- yousef: it has been a remarkable few hours. i set up my bloomberg alert so at certain ranges it really rings an alarm. when we saw gold fall between $1300, let's take a look at the situation. and 10 year u.s. treasury's. you can see how they are moving in different directions. the instinct thing -- this is the first time that old goes -- gold300 june 24 area goes under $1300 and's june 24. the thinking here being that it would force an increase, or a bigger increase, later on. talk as wellb factor again and playing a major role. gold. still about 20% on hase is a perfect from that pummeled gold.

it has been upgraded slightly by the imf for this year and next year.he last couple of quarters, higher than the u.s. growth. i think we need to step up our efforts in terms of reforming our markets and making sure there are more investment opportunities in europe and then potential growth can even be higher. of course, there's the discussion of brexit which is not helping. say thecertain, to least, could be damaging for future trade relations. so there is a big concern there. a lot of people were unhappy by the atmosphere of the conservative congress, conservative already in the u.k., and that is being followed closely in our countries. francine: we spoke about four weeks ago. at the time we talked about the uncertainty of brexit. are we a lot clearer now what kind of brexit we're looking at, calling it either a hard brexit, when everyone to collect, it seems they're not ready to protect financial services. >> i'm really surprised by this because i think it would be in the interest of the u.k. and u.k. government to put the economy if not first, then v

that's the latest warning from the imf. tom keene is with me now.view theto chief economist at the imf. what can he possibly say? tom: he can't. what's interesting is the ambiguity of the report. frankly it's a fairly positive report even though you read paragraph to paragraph and there's a lot of gloom. i'm going to ask him about the first sentence of his summary. strong sustainable balanced inclusive growth eludes us. the median forecast is being downgraded. longer-term we don't know what kind of tit-for-tat tariff detection is an is going to be in place. tom: they do mention it early on. it dovetails a little bit into the election. clearly madame lagarde has said trade matters. that is one of the messages year as well. we do not have him yet. good to see you. this is also about the existential threat to the world economic order. it is an existential threat in terms of market dynamics. sterling breaking through is a smaller story for the imf that mixes in. let's remember it is a shift in outlook with reduced u.s. growth lesser developed economy gr

imf meeting which sarah eisen will have later on today.less claims you got to go back to 1973 to get a number this low. 249,000. and then, jim, oil at 50 for the ugh t time since june altho some argue it has to stay here for a while to suggest we're in a new chapter. >> well, i do think that the hurricane is going to cause the shorts to do a little panicking, the longs keep pressing it. i know a lot of oil comes back on the market at 50 in the united states because that is a level. expect to see a lot of futures selling. i think it's interesting the 2021 futures market shows a $20 increase during this whole run from 42 to 50 which says they are skeptical -- people who actually buy and sell oil on a buy and sell basis are very skeptical of this move. i do think the shorts will cover if this goes above 50 because of the hurricane. >> that's interesting to watch. you know, you mentioned the kla-tencor stuff. talked about twitter. are we drawing a line between these would-be deals? are we in an era where m&a starts to take a step back? >> i th

busy tuesday morning as the imf has a new forecast out. got a vice presidential debate tonight. plenty of fed speak as we work our way through all the macro leading up to the jobs number on friday. jim, crude oil within a dollar now of a five handle. brent is the highest since june 10th. what are your thoughts regarding oil right now? >> i think that when we see inventories, i think that we're going to have to say to ourselves where are they going to put all this oil near term. remember, still supply and demand. i think that supply and demand until november is going to show there's too much supply. and then even -- who knows what's going to happen in november, but boy, they really got the shorts. the shorts didn't see it coming. they moved it up. it is not real demand. there's no place to put the stuff, there just isn't. [ bell ringing ] >> that's going to be something to watch today. there's the opening bell and a look at the s&p at the bottom of your screen. at the big board today, it's versum materials celebrating its spin-off from air

the imf upgrades the outlook for the u.k.ar but downgrades it for 2017 and says estimates depend on a smooth negotiation with the eu. ♪ manus: welcome to "countdown." i am manus cranny. anna: i am anna edwards. we're getting pretty numbers for the giant of the u.k. 596 million giving guidance on capex. the focus has been on recovering the sales numbers in the u.k. comparable sales growth coming in at 0.6%. margins andound the to deliver three point desperate percent to 4% profit margin by 2019. that operating profit number, 596 million pounds. one thing i am not seeing that will be coming through the release will be any reference to the pension deficit. morgan stanley was estimating this may have increased by 3 billion pounds. not alone in being a big u.k. corporate. we will talk about that more. this is something the market was fixed on. a lot of questions as to whether the recovery we have seen in sales will mark a stage one as -- stage one of dave lewis's recovery. business that has delivered some stability by dave lewis c

the imf with some doom and gloom for europe's banks. >> i am afraid so. it does not look great. the international monetary fund says european banks need to take urgent action to address nonperforming funds. they currently stand at around 900 billion euros. the imf says weak profitability in a low interest rate, low growth environment could erode european bank buffers and undermined their ability -- undermine their ability to support an economic recovery. the imf says they should write-off bad loans and the weakest banks should shut down or merge into stronger entities. on wall street, hosea standing by for us. the imf has come out with comments that say one in three european banks are weak and will not be able to return to sustainable profit. how concerned should we be? >> well, it is something for sure that is keeping banks up. several banks need urgent action to address nonperforming loans and a new business model. that means these banks could pose a risk to financial stability. if all of these banks would do their homework, they could project 60 billion euros of profitability

tom keene with the imf chief economist.gton at the imf releasing their world economic outlook. much thenk you very nejra cehic. -- thank you very much, never change. -- thank you very much, nejra cehic. ♪ david: this is "bloomberg ." tim kainepence and debate each other in virginia tonight, they will be facing very different challenges. megan murphy will be with us to tell us what to expect. how does governor pence shift the focus from his running mate's taxes on to something that is better ground for him? megan: we will have a format that is quite controlled, they plan to spend 10 minutes on each topic. the format will help him. they are trying to push policy. bit.will help him a governor pence is a disciplined performer. he's been very disciplined on the stump for trump. he will talk about domestic policy. he's been quite disciplined on the conservative message, the social policies they would advocate. the format will help him. it will be up to him to stay on message tonight. david: we have a candidate in tim kaine wh

the imf said it is one of the biggest risks to the financial system. that was the task of central banks instead. now he is in washington dc for us of leaders. hosea, good to see you. he is been very vocal already. the main message is that countries should not ignore the prospect of another financial crisis. >> yes the german minister of finance did not comment on deutsche bank that he was very clear to point out those risks coming from the ultra-loose monetary policy nowadays taken by the ecb for the bank of japan. he said that the danger of a new crisis has not vanished. also the excessive debt that we see and the public and private balances. it makes a economy is more vulnerable so the imf on wednesday said that public and private debt are not included and it has approached to gdp. i hope that the g 20 members will take this current situation much seriously and accordingly. he will definitely make this a cause next year when germany holds the g 20 summit. >> brexit seems to be a big enough concern in washington. it seems that the imf is mainly concer

is it ever included the recommendation that the imf offers? and secondly, the second one is, in a letter to the 2018 meeting that will be held in indonesia, what do you expect from that? and how can we bring indonesia to that? thank you? dir. lagarde: thank you very much. at northwestern university, the first policy message was do no harm. and what i meant by that is, when you have growth that has long,oo low for too benefiting too few, you cannot afford to put in jeopardy one of the engines for growth, which trade has been. now, we know that a lot of the trade freefall is largely attributable to lack of demand. but clearly what we are seeing in terms of political dynamics and rhetoric against trade would, in our view, do harm to the economy, economic malpractice. that is what i meant. 2018, we are very much looking meeting,o that annual which indonesia will host. and i hope you all come. i think it will be really important for the region, which is one of the regions and the world where growth is still going quite strongly, where there is some

has reached its highest level from 2009 last month, and head of an expected valuation to secure an imf loan. yousef: and saudi bank stocks have never been so cheap. the price-to-book ratio for lenders at its lowest level bloomberg started tracking in 2006. it is in :00 a.m. across the emirates, semi-clock a.m. in istanbul. i'm yousef gamal el-din. angie: and i'm angie lau in hong kong, where it is just past noon . welcome to bloomberg markets middle east. what we're watching here in asia as charles 11 make some comments for us in sydney in australia. we are also watching that u.s. dollar strength really impacting the asian markets. we did start off strong when it came to oil, but we are paring those gains now. how about your neck of the woods? we were off to a slow start at the world energy congress, and then things kicked up when the heads of state walked in, including russian president vladimir putin, including rizzo erdogan, his turkish counterpart. whether non-opec will join the conversation. this is what happened when the russian president started speaking about what he thinks rus

the imf had the uk growing faster than the u.s.his year. >> which had all the brexiteers saying look at us. >> 2017, not so much. things were better all along, the imf has been marking down forecasts for eight years in a row. but the uk is the one place that sometimes marks them up. >> you have made a lot of headlines with comments on china, which you think people are not paying enough attention to and not worried enough about. why? >> certainly going on there politically is making it difficult to do reform. they have debt problems. they have slowing growth. probably more than the official numbers. if you're looking at a spot in the world that can cause problems over the next couple years, i would point to china more than europe. >> it seems as long as the currency is stable and they have it under control, investors don't worry about it. >> they don't know anything about it. the chinese don't even have good data on it. it's one of these things that can move really fast when it moves. you go, oh, i didn't realize they had debt, 220%

the imf says quick, raise rates before it's too late. there is this, the imf is downgrading forecasts for u.s. and global growth. to lori rothman on the floor of the new york stock exchange. i'm sure that is casting a shadow on stocks but so are a couple other things? >> reporter: earlier this morning, you mentioned the deutsche bank and expectation of lowered fine by u.s. government officials, so that sort of counted for the back and forth, if you will, and so the catalyst a lot of analysts are saying shifted from the direction of oil prices and now to whatever happens with deutsche bank, which leads to the imf, it talks about the uk, obviously, post-brexit and did downgrade the u.s. forecast on growth to 1.6% from july amid a 2.2% for what it's worth, the first half gdp came in over 1%. the market crashed coming down 100 points an hour or so ago, and a lot ofheolks are looking to the ecb, and media reports suggesting the sneb latest minutes talked about the possibility of beginning to taper quantitative easing program. so right now the

matt: as global leaders gather at the imf meeting, even christine lagarde couldn't help but chime in on the developing deutsche bank story. she told bloomberg a bad settlement is always better than a good trial. the jobs all eyes on report, we take a closer look at unemployment insurance and whether or not the benefits help or hurt the labor market. scarlet: this has been the trend before a big jobs report. treasuries declining. the latest data. inwill probably move december. all signs are reporting the economy can withstand a rate increase. >> they are not political and every meeting is live. the other interesting thing is that you mentioned earlier that defensive stocks have been retreating and we saw utilities rip away for a second. they are back down again. losers, health care, telecoms, and utilities are down as well. the sectors are all down again today. take a look at some of the individual winners and losers on the day today. there were bigger stories under the hood. all foods up on a lot of options act to video and speculation on twitter, i should point out, of possible take

the imf warned of growing medium term risk to financial stability as the imf holds its annual meeting with the world bank. those institutions have been facing criticism from emerging economies. they want more access to funds from the imf and world bank. >> they are fundamentally institutions that reflect the point of view, the interests and ideologies of the north atlantic powers. you have the eu on one hand and the americans on the other. they are having difficulty in facing the challenges of the current situation and they are losing trust. been signed with iran's biggest carmaker to open a plant producing 200,000 vehicles a year. they will showcase five models in a joint venture first announced in january. last week renault announced a similar deal. ingeot was a mayor player the car market before sanctions were announced. company was also a victim of the sanctions. we also were prevented from doing what we wanted to do with our partners and to a certain extent we had to respect those rules. had we not respected those rules, it would have very serious consequences for our own company

imf analysts say the two major candidates in next month's u.s. presidential election, health care -- hillary clinton and donald trump advocate protectionist trade policies and it could be a factor behind weak business investment. the imf revised up its growth forecast for japan to 0.5%, this was partly due to the government's latest supplementary budget. the projection for the global economy, that's unchanged at 3.1%. now let's get a check on markets. speculation about central bank action moved markets. immediate report that said the european central bank may scale back bond purchases. and also some major senior officials at the u.s. federal reserve mentioned the possibility of an early rate ke. we'll see how the markets are doing. ramin mellegard is at the tokyo stock exchange. >> sentiment remains a little bit subdued, but of course the u.s. jobs numbers coming out on friday. as you mentioned also central bank policy moves, also dominating market sentiment. and also for here, the stronger dollar may help a lot of the exporters. but let's have a

this is bloomberg. ♪ washington with the imf fund meeting.ur interview with christine lagarde coming up later this morning. all sorts of economists and strategists wealth join us. we are thrilled with the turnout. in washington and joining me off the plane -- she survived dulles international airport -- francine. we greet foreigners into the country with dulles international airport. right now, we go to ian shepherdson. jim glass and will join us tomorrow. and there's backstory now because there are three reports before we get to the december meeting. how important is this report? every report is important because everyone has the capacity to spring surprises on us. this one is shaping up to be an ok job support. in not expecting a big move jobs numbers. bearing in mind, wage growth is ultimately the same as what the fed worries that most when they iink about future policy, think the interest rate risk is still very real. tom: within that is the state of the american economy. we have a different glide path with other central banks. but what i

necessary conditionality for the imf to participate in the program? and how do you respond to european officials asking the requirementand its for debt relief? article 4, which is the bilateral efforts between greece, our member, and the imf greek team. the results are very accessible, and indicate that some reform has been conducted. a lot more work needs to be done going forward, as we all know. and we will be actually sending a team and a couple of weeks time, in order to help with the assessment of the various commitments that have been made under the esm program. because, as you know, the imf is not part of debating any greek program. but conditions have not changed. we believe there has to be very significant structural reforms in place, and we also believe there has to be a debt that is sustainable going forward. and we have demonstrated flexibility in the past, in order to assess the debt sustainability, but we clearly believe that as is, the debt is not sustainable. mr. rice: thank you very much. i am turning to our friends from the british p

the imf is revising of the forecast for energy markets as a group at 4.2. this is one of the first of six in forecast. that is where the action is going. yousef: a doesn't really matter that much anymore whether opec come to an agreement or not? >> it is important for sure because it reinforces the originality of the key players. will be the factor dominating factor in the future. theef: just a show bloomberg median estimate for 2017, how far is this from your forecast? affects thehow this investment opportunities in the middle east and africa specifically, gcc, you are seeing a lot of options on the table. you would like the investment case for this part of the world, don't you? >> it is part of the emerging market, moving away from the political risk in the developed markets. there is also currency stability and growth in asia. the result of talk about the protectionism at the global level, but they are close, the middle east is close to the area, where there is a regional trade around asia, china, where there has been no optimize when it comes to the ope

fresh back from the imf world bank meetings.i sat down with governor.f japan we were talking about the boj, the fact that they will continue easing in coming months and years. here he is. exit at not intend to this stage. we will continue, or even strengthened the monetary easing in coming months. for the time being, as they said, they will continue. francine: that was governor kuroda speaking to me over the weekend. back with bob cinch. mark, nice to have you come on. we want to talk about globalization. first of all, i have to ask you take on japan. what i was trying to discuss at was the fact that he wants to cap the 10 year yields. curveappens if the yield goes below 10%? if he starts to sell, that would be seen as tapering. >> exactly. i think they are up against the wall. everything they have tried is not working. a lot of other central banks are against the wall as well. we are in a situation where it , but thefor markets same time, the risk is tremendous. francine: it is tremendous, and they can actually spend a lot of m

on the one hand, the imf says there is too much debt. and central bankers say come on governments, we need you to . that might result in more borrowing. how do we work that out? jeremy: it is very difficult to square that circle. what we are talking about from central banks is a recognition that monetary policy experiments are running into fruition. we have seen that you mention about mario draghi repeatedly in his press convention got talking about those that have fiscal room spending more. and of course, that subtext for germany. i think we are seeing a recognition of policymakers have said we have done our best. we have really put our shoulder to the wheel the last seven or eight years. we have taken monetary policy into very unexpected places, unconventional policies. we now need to see more of a cause and effort, and that involves fiscal policy. that is rather counterintuitive, when you see the imf warns about that. manus: i mean, has monetary policy work is always going to be debated. who knows about that? but this is the most rece

how would the imf deal with the donald trump presidency?think those paradigms are too country-specific and complicated, subtle to be , put in the same basket and dealt with like that. it would require another long debate. ♪ matt: this week bloomberg launched bloomberg technology, a new website about the developments in global technology from bloomberg's 12 international bureaus. code of -- go to bloomberg.com/technology, or check out our handle on twitter @technology. one of the biggest tech stories with one of the tech world's biggest names. emily chang caught up with mark cuban at the dream force conference in san francisco. he had a few things to say about technology and politics. >> how do you think clinton versus trump would impact deals, pe, growth in general? >> where it impacts us, when you have a president, let's say you do not know what he is going to say next that the ultimate uncertainty. , he has not been it will to control himself and is this close to the presidency. he is not going to change. one offensive comment and north k

i want us to be governed by distant institutions like the imf and world bank.i'm sure they're good for employment but as far as i'm concerned, that's not good. i'm sick of 1000 economists at the federal reserve board who been done more harm than good. i'm sick of devils and that crowd who's done more harm than good and i love exit, i was so much in favor of pulling out of the european union. i call it magna carta 2.0. get rid of people who have a wonderful legacy, i love britain. i love what they just did. the magna carta, parliaments, representative democracy, freedom equals growth. that's the way i see it and the eu, i put them right in there with the imf and the world bank. you can have it. i'm for free trade but i want free trade be governed properly in accordance with american interests in democracy. >> what do you think of the uk leaving the european union and the effects. >> i'm in favor of it. >> yes sir. >> i came to work in wall street under the ages of chesney martin which as you recall replaced truman's poodle marriner eccles. and i think that's a f

and imf reserve currency will focus in on the world's largest economy.ith five weeks until america goes to the poll, what does the row over donald trump's taxes really mean? this is bloomberg. ♪ francine: welcome back to "the pulse." let's get straight to the bloomberg business flash with nejra cehic. nejra: janus capital is recommending a merger with henderson global as it seeks to boost assets. it would be called janice henderson global assets in the firm will be have more than $320 billion in assets. henderson group plans to relocate shares in london. pimco is warning about asian debt. issuance surged 66% from a year earlier to $152 billion. falls near theld lowest since 2007. pimco says asia's credit is rising faster than economic growth and it doesn't expected to leverage. -- it doesn't expect it to leverage. -- aipac ceo says consolidation is good for the industry. juliette saly spoke to him in hong kong. >> in general, we have said that if there's an interest, we are open to acquisition. i cannot speculate on specifics. nejra: that is the bloomber

how does the imf deal with a donald trump presidency?k those paradigms are just too country specific,, located, and settled to be put into the same basket and dealt with like that, so it would require another long debate. ♪ matt: this week bloomberg launched bloomberg technology our newly redesigned website covering the latest developments in global technology from our 12 international bureaus. go to bloomberg.com/technology, or check us out on twitter at @technology. tech is indeed global. let's check out our review of the week's biggest tech stories with one of the tech world's biggest names. in the chang caught up with -- emily chang caught up with mark cuban at the salesforce dream conference in san francisco. he had a few things to say about technology and politics. >> how do you think clinton versus trump would impact growth in general? >> i think where it impacts us, when you have a president, let's just say trump wins, and you don't know what he's going to say next, that is the ultimate uncertainty. he hasn't been able to control

the imf is not a political institution, yet the imf said political risk is one of the major risks facing the global economy. david: i wouldn't want to be a passenger on that plane. brian: we have a long history in this country of peaceful transitions of power, even believe -- between different, lyrical parties so i don't -- even between different political parties, so i don't think it should weigh on investors. i get asked the question, given the fact the election is so close, how should i invest. i think it should not be one of the top three or four factors influencing the market over the remainder of this year. if we see an unexpected tightening in the polls, you could see some volatility. you have to go back pretty far to see when a presidential in -- election in the u.s. had a dramatic influence. vonnie: we are getting another round of earnings next week. a lot of people said even though we've been in earnings, it's not going to get any better. is something we have to watch very carefully. we've been in a holding pattern with the s&p 500 for a couple months. the post-brexit rally we

for the annual meetings of the imf. bank governors gives us his take on the global economy. this is bloomberg. ♪ scarlet: global finance leaders and central bankers are convening in washington for the annual meetings of the imf and world bank. and joel was involved spoke to voiced in olson, the norwegian central bank governor for his take on the economy. to madamelisten lagarde and the president of the and i definitely share their general view on the prospects for the world economy. which is not a very bad, but as they stated, growth is still weak and fragile. that is the term they used. that, in the present situation, if we get measures around the world in the direction of protectionism, which will we can trade, that is not what we need in the present situation. right now, the upcoming u.s. election is seen as an event risk for markets and economies around the world. do you have your eye focused on that, is that something important to you, the outcome of that? , with thely speaking close relations between the norwegian

that is something the imf says is an urgent issue.will also get industrial output numbers today, expected at 6.4% for september. retail also bring in sales numbers as well, expected at 10.7%, up from 10.6% in august. we are expecting fixed asset investment as well, crucial when we look at that and looking at how much is been spent on the private sector and how much has been spent by the state sector as well, because no last few months, the state has been spending extra. in august, the private sector did step up. a lot we are looking at this morning. china also publishing its latest money supply data. what do those figures tell us about attempts to rein in excess credit? that's right. these numbers came out yesterday. lending,boom in new and what that means is of course that the short-term and medium-term, that is positive for growth, but shows there is some in of a disconnect between what we are hearing from policymakers about tackling debt and what is happening in terms of credit. we saw a pickup in loans to households, which is good

they also want the imf to rejoin the greek bailout.mf is monitoring the program but has not made any financial contribution to it and the german finance minister will be here today. he is still reluctant to give greece some kind of debt relief. alsoreek finance minister told bloomberg over the weekend that he compared greece to a gazelle that is being trampled by two fighting element -- elephants. caroline: other elephants in the room, we used to talk about and now we- grexit are talking about greg's it. -- brexit. >> we expect a lot of brexit discussions on the sidelines. the u.k. chancellor will be here meetingbourg for the and bully the grounds for the first eu summit attended by prime minister theresa may next week on october 20. the main sticking point for eu leaders and eu finance ministers cannot restrict legal immigration and keep the same access to the single market. forward to hearing what comes out of that conversation. we should have arrivals for you as we work our way through the day. maybe we will get more commentary on w

mike: the imf's most recent outlook was relatively sanguine. in some cases, a revised higher for 2017 and 2018. do you think we have come out of the new normal where we couldn't grow very quickly? >> the overall growth projection for the next year or so is still below the medium average, which is not good enough. considering it fell into a hole we never filled that back in is not great. a shortfall in business investment over time will damage potential growth, so this is a problem that still needs fixing, even though, as you point out, the outlook isn't terrible. it's not wonderful. but it could and should be better. can central banks address this shortfall? janet yellen was speaking , but sheally today said you can let the economy run hot. john: again, there seems to be a consensus that there is a need for fiscal adjustment or some fiscal expansion where it's onsible, a bigger focus structural reforms that would encourage improvement in productivity gains in the medium-term, and appropriate monetary policy. let's call it three-pronged. it's a

for next year, the most conservative forecasts like the imf is showing .5% growth.g some dust projected recession next year. ,rom a very conservative side like the imf, they are talking about .5%. the most optimistic, 2%. , greece is like a broken country. on the other hand, a lot of what was wrong has been fixed. we are running a primary surplus, which means we are spending less than we are earning and taxes. -- in taxes. a lot of the structural reforms or underway.essary not enough. start aa good basis to .ore viable growth what is necessary now is some political stability that will bring investors back. what greece needs is over 100 billion euro in fresh investment. that can only come from abroad. my worries is the current government is sending extremely mixed signals to investors. we need to be in. -- we need the international investor community to come in. >> can you survive if debts are not reduced? >> we need relief. it will not happen in terms of a hurt that haircut -- that debt haircut. has beengh debt relief put out there as a holy grail, it is not enough.

was so much cash no one was begging the imf for money and sure enough the crisis came with another 50 year lease on life. one of the other benefits of big time economic growth was to clear out the nonreal entities, the fed, the imf and all these things in the midst of prosperity. >> alan is a friend of mine, a superb federal reserve chairman, served four terms, don't think anybody else has done that which when he made a statement it was a statement about the ability of free markets to function properly at all times. a lot of people blamed the financial meltdown of 2008. what is called ultra easy ultralow interest rates that alan was responsible for, partly responsible for. he made mistakes but i think he's losing his nerve, said the markets didn't work the way he thought they would. i think he is gaining his legs more and realizes government regulation paid a huge role, overregulation played a huge role and i don't want to go deeper on that because it is not our subject, greenspan years of economic policy, was a free-market guy and also a sound money guy. maybe people in high office s

. >>> the yuan becomes eligible for imf loans. this is an affirmation of the success of china's economic developments. let's talk about this and investing in china with our partner at east capital. now china says this is a big success. others would argue it doesn't really change anything because the currency is still not widely tradeable. it can't be settled everywhere, it doesn't change anything. what do you say? >> well, i think it's very important. it's a milestone for china. the international process has been ongoing for years for investment currency. and in terms of impact, it is being chased by central banks around the world. but again, it is an important step for china. and myself heading to washington, d.c. after london, going to meet with a lot of people from the imf. and it will be interesting to hear, of course, if it has any implications so far. >> does the inclusion and the reserve have any say about where the currency is going to be headed, whether it depreciates further, some say it will because they will intervene

imf says nobody will touch with that debt forgiveness. can greece survive with debt reduced? do need debt release. it probably will not happen as fresh given now that it is all held in the majority by the official sector, so you will have public capping interest rates extending maturities along the grace period. even though that has been put up as the holy grail, it is not enough. necessary but not efficient. the heart flow, what will bring confidence back is holding institutions and the kind of stability in the tax system, the environment for businesses that any investor looks at and that would take a longer time than the decision. caroline: one of the world's best-known hedge fund managers took us inside the serious legal battle. the sec has charged leon cooperman with insider trading and he told erik schatzker why he feels he has done nothing wrong and what accusations that cost his business. erik: do you as a mother practice in an effort to produce returns for your investors sale close to the wind? leon: not even close. we are a deep dive fundamental firm and information

still, he is scheduled to take part in an imf committee meeting which follows the g20. >>> let's take a look at markets now. wall street ended largely flat. that's ahid of the key u.s. jobs data out later today. the dow jones industrial average ending a little less than .10%, the tech-heavy nasdaq ended down a little less than .2%. we'll see how markets in tokyo are kicking off this friday morning. for that, we'll go to ramin mellegard at the tokyo stock exchange. tell us how markets are opening, ramin. >> really, as you said there, indexes in the u.s. largely unchanged. investors refraining from making any major bets ahead of key u.s. nonfarm payrolls and unemployment data later today. let's have a look at how the nikkei and topix are kicking off this friday, october 7th. and both in the negative. not that much of a move. we'll see how that progresses. but nevertheless, we're lower. now, the nikkei actually rose for a fourth day in a row on thursday, on the back of a weaker yen, closing up thursday over half a percent. increased activity in foreign exchange markets, as some of japan'