implications for the imf treaty and army modernization. this is a joint event between the defense industrial initiatives group or d.i.g. directed by andrew hunter and the missile defense project which i run. before we get started, we ask folks to kind of familiarize themself with the surroundings just in case you got to exit, or take the stairs out here or take some exits to the back. and should there be any reason to do that, can you look to me or andrew for that sort of thing to kick things off i'm going to hand things over to andrew hunter to introduce our first speaker. >> good morning, everyone. thank you for joining us. and i'm andrew hunter, director of the defense industrial initiatives group here at csis, this morning's event is a collaboration between our two programs. for those of you wondering about what the definition of collaboration is, we're trying to give you a demonstration this morning. it's my pleasure to introduce senator tom cotton who will join us to give us great remarks. senator cotton is a senator from arkansas. h

the imf says the weak first quarter. the imf says the uk will grow the weak first quarter.eak first quarter. the imf says the uk will grow 1.7%, compared with the uk will grow 1.7%, compared with the previous 2% it was forecasting, but to be honest it doesn't clarify why. i've looked through the report and it doesn't say much more than that. the funds said meanwhile that the us would grow byjust1.2% in comparison to the 2.3% it previously forecast down to of course the fact that fiscal stimulus in the us isn't going the way everyone expected because the trump administration seems preoccupied, to be frank, at the moment. let's take a look at china. it got a slight bump up. growth rates in 2017 expected to come in at 6.7%. next year at 6.4%. both figures are slightly higher than what the imf previously forecast. as we have been talking about over and over again, all the comes at a hefty price tag. the imf says beijing, in order to achieve the growth rates will be focussing on government spending. that might meana on government spending. that might mean a delay of much—needed

the big problem, especially from the position of the imf, it is all

back by the imf.eld back by the imf. that won't happen until greece's debtors gave them debt relief. and the ecb said debt relief is a requirement for them to buy bonds from greece. if they can secure that, that could be a game changer. yes. it has been one of the issues that has been ongoing in the last couple of months. this debate on how to make sure that greece is able to service some of the debt that it has. it seems that there is some movement on the imf's side and the eu side to come to an agreement which, as you pointed out, greece is not benefiting from the bond buying programme that the ecb has started, and which in other countries has positively impacted the size and health of the overall economy. who would have been buying these bonds? they are still quite risky. they had a helping hand, didn't they, a0 million euros. yes, so was some enticement to buy the bonds. it appears that there were enough investors wanting to buy these bonds, at which, well, is not a real surprise. there is always

turning to the global outlook, the phrase the imf uses global outlook, the phrase the imf usesis globalf uses is "a firming recovery" with growth projected this year at 3.5%. that would be an improvement over the last few years, but is still below the average for the years before the financial crisis. it is a non—changed view compared with the april forecast. there non—changed view compared with the aprilforecast. there have been downward revisions. the uk and the united states have been offset by favourable changes for a number of countries, including several in the euros own. andrew, many thanks. you may have noticed some foods, particularly chocolate bars, have got a bit smaller lately. manufacturers say it's because ingredients like cocoa and sugar are costing more, and they've had to put up prices, or make their products smaller. economists call it "shrinkflation," and the office for national statistics says more than 2500 products have shrunk in sizein the last five years, and yet are being sold for the same price. scientists say they've found human material, in soil samples taken

the deputy secretary-general of the oecd, the deputy managing director of the imf, the economics professor at george mason university, and the head of chinese equities at blackrock. >> i think the respondents hit a really, really good topic, which is the geopolitical or geoeconomic tension. i absolutely agree that things like productivity and debt burdens are a threat, but these are not things that were built up overnight. they were built up over a number of years, and to some extent we may even see -- let's say artificial intelligence, technology offset over the medium-term. i do believe that is the biggest issue to consider, the geoeconomic issues. that really brings us back to the unpredictable nature of some of these driving forces. for example, what's happening in north korea, what's happening in the middle east. a lot of unexpected things have arisen, and even with that aside, we still have all of trump's agenda in terms of protectionism and trade wars globally, which fortunately, so far, haven't really panned out to the extent he has talked about during the election. stephen: your v

>> let's talk about the imf.ned at the time of full-year u.s. forecasts. the last time the imf released its world economic outlook, there was a distinct change in tone. for the first time in quite a while, they not only sounded upbeat about the global economy, but the global forecast was raised a touch, rather than revising it down. we had gdp data from europe, japan, china, better than expected. impressive, not a breakout number. later this week, the u.s. comes out with 2.5% growth forecast, hardly even at potential. what is going on there? , but it is awesome basically in the range where we have seen since the u.s. economy begin growing again in 2009. not terrible. should we be doing better? sure, but where will that come from? there were expectations late last year, early this year that growth could be higher. that was dependent on a number of things happening, particularly in congress. guess what? nothing has passed. david: not yet. andould look at this number hope to get the bonus towards the end of the year

manus: you mentioned the imf. as aw your strategy geography, the imf has upgraded the forecast.entiment. >> excellent news. our business model, -- manus: do you feel the change? >> the mood has gotten back here if you talk to investors. it has gotten better. europe is always slower. reactit is less fast to to market sentiment or changes to it is also going to be a longer cycle. >> is finally on the currency. the levels keep going for you. news?t good do you see that continuing? is there a risk that they could fall behind the curve? >> i think it is good news. we have more strengths and on weakening ofe, any i think theanc national bank is looking at the department possibility. what it takes besides all the intervention. outlook perspective and policies following. we should see the level to be the new floor. manus: great to see you. good luck with a strategy. back next year with the target again. vicki so much for joining us. a very bullish boris. equities, equities, equities and more equities, and you let's hope these continue to rise. anna: the conversation on the drive through

the world economy is the strongest upswing in a decade, according to the imf.d outlook for the uk the us. yes, and what the story is really telling us is something we have known for a very long time, which is established western economies are finding growth really difficult to do now. and emerging economies, india, a lot of the south—eastern asian states, are doing incredibly well. that is what is propping the global economy up, before you even talk about the brexit word, sorry i mentioned it, in terms of what is happening in the uk. soa in terms of what is happening in the uk. so a very mixed picture. of course, a lot of people will say, imf, how often do you get your numbers right? so there is a lot of scepticism around the imf numbers but the general trend is clear. interestingly, the chinese numbers have continued to slow down as well, so have continued to slow down as well, so everybody from global economy point of view needs to keep their eye on that. there was a very interesting comment from justine lagarde, the managing director, and there is a bylaw th

away from china, greece, the imf has decided tojoin the away from china, greece, the imf has decidedthe party, lending money. has there been dancing in the streets in greece this week?|j money. has there been dancing in the streets in greece this week? i think not. imf is only provisionally joining the party. they have agreed a programme of1.6 joining the party. they have agreed a programme of 1.6 billion euros in the context of a bailout from the eurozone that is up to 86. it is a small contribution, moving towards the imf result of some of the doubts that it has about the programme. they are also saying they are not actually going to handle money over until they have more assurances about debt relief for the future. nonetheless, christine lagarde, going to her board and saying i think we should make this commitment in principle and board has said yes. that represents the imf‘s member countries. let us know when they hand it over. now it is time for the next in our series of million—dollar ideas. now we look at the family favourite, the frisbee. summer is here! get to the beach! que

you will remember the imf was pretty critical about brexit in the lead up to the referendum and vocal the uk would see adverse effect but that does not really show up in this report. meanwhile, the fund also said the us would grow by two x 1% in comparison to 2.3%. that downward revision is due to the fact that the imf does not expect to see the same fiscal stimulus in the us that had been expected under president trump mahmoud abbas administration of things like tax cuts and infrastructure construction. given the problems with the administration, they say it does not look likely. china saw an upgrade. next year 6.a%. all these figures are going to be in line with what the chinese government wants for its economy and both are slightly higher than what the imf previously forecast. renee elliott founded organic supermarket chain planet 0rganic in 1995. she said she went through a difficult time in her early thirties, which led her to focus more on her own wellbeing. she's shared her wellbeing tips for other bosses with ceo secrets. i think it was when i was in my early 30s, i went throu

greece has been approved for a new conditional bailout from the imf. principle a new loan worth as much as $1.8 billion. it adds to speculation on whether the imf would join in another rescue. greek officials say to people have been killed in more than 100 injured after a powerful earthquake. many have been said to be hurt after an old building collapsed in a popular tourist destination. -- earthquake north korea's economy is now growing faster than its southern neighbor, helped by military spending, including the testing of nuclear weapons. ,ccording to the bank of korea and expanded from a year earlier. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. -- as been more than a year don't forget your nichols. recession, the mid-caps pulled back harder than most. , global headarri of small and mid-cap equity strategy at j.p. morgan. fund somewhereon has an allocation. we are going to take some risk off the table in terms of the headline risk. this is a

cotton: the imf is breached by russia. we cannot tolerate when the united states is the only country that refrains from full have potentseveral general testified in congress. if the current state of affairs it remains the same, i agree. that is why it is designed to put pressure on russia to come back into compliance. or giving the -- shifting nature of a global compliance, we should withdraw from it here to we haven't reached that point yet, but i six up -- i suspect we will sooner than later. the europeans are always up to -- are always a divided 20 degree. there are some european countries that strongly opposed president carter and president 2 -- countries. there are other european countries that strongly supported it. it is up to the u.s. to remain -- to maintain unity among nato allies. >> i saw the gentleman in the middle over here. how do you propose to pay for all of this increased spending? either you increase taxes, or you cut other commitments, other spending elsewhere. to beat is it -- you seem suggesting much

the united kingdom was downgraded by the imf.e will come back to that in just a second. >> a bit of technical gremlins in the system. a meeting between energy ministers from oil-producing countries getting together in russia. what can we expect? countriesd non-opec are meeting in st. petersburg today about how to move forward with a deal signed last year on production cuts. it was signed to combat shrinking prices. oil prices jumped from $50 a of $57 ina high january. since then they have sunk consistently. prices haven't touched the $50 market since may. analysts say one of the big issues throwing off the market is an increase in production from opec members nigeria and libya. they were exempt from the original deal due to supply disruptions. crank compliance is that about 90%. countries like iraq and the uae aren't cutting production as much as they had pledged. ecuador became the first country to say it cannot afford the cuts. nigeria has voluntarily agreed to limit oil output at 1.8 million barrels a day. have picked up at th

after the disappointing growth outlook the uk received from the imf last week, today we get some realbers for the british economy. and, after "emmissionsgate" is a new scandal brewing or vw? if so this time it's not alone, all the main german car—makers are accused of having operated a cartel. but did they? welcome to world business report. i'm rachel horne. also in the programme: will nintendo continue its comeback? sharanjit will tell us what to expect from the gamemaker‘s upcoming results. but first, later this morning the uk will unveil its latest growth numbers for the three months to the end ofjune. earlier this week, the international monetary fund warned that weaker economic activity means both the us and uk will expand more slowly than expected this year. however, in the numbers due out this morning, economists are expecting the uk's growth rate will have risen slightly in the last three months to 0.3%. following the brexit vote, the pound fell. this put pressure on prices — last month inflation stayed above the bank of england's 2% target rate. and higher prices, partly from

but the imf is watching closely for the impact of brexit negotiations. the organizations that its projections are based on an optimistic assessment of how low turnouts. putting pressure on the kids governments as it works how to deal to leave the eu. a ticket on the day's trading action now mixed close for european markets with the dax weighed down by germany's carmakers. it's a one hundred down one percent just the cat galloped manages to end the session in the green. wallstreet struggling for gains all that we've seen the nasdaq hit yet another record high. investors are waiting for earnings from a number of major companies including google. and come in just under an hour's tim. meanwhile us wti crude and international branch both closed up over one percent. has major oil producers meet in st petersburg. not that summit opec and partners like russia are pressuring smaller produces to do their part in scaling back out put. in order to boost prices. opec members libya and nigeria have been exempt from the cartels so stealth self imposed limits. nigeria t

the imf says that the uk economy would grow byjust 1.7% this year compared to a previous estimate of% down to 2.1%. the imf said that this was based on "the assumption that fiscal "policy will be less expansionary than previously assumed". let's get more on this with samira. what does that mean exactly? well, really, and it comes down down to something with talked about a lot, with the aspirations of the trump administration on what can be accomplished. president from when he was campaigning to be president said we're going to see a growth rate of 496 in we're going to see a growth rate of 4% in the united states. that was downgraded to 3% when he took office. when we're looking at the growth rates, they are in the low 2%. the big problem, especially from the position of the imf, it is all of these legislative aspirations, things like getting the tax code reformed, and getting the big infrastructure plan pushed through, those are not looking realistic. it is looking difficult for the crab—maco administration to get those things past and as a result that will have an impact on how muc

well the imf doesn't think so — they have now downgraded growth forecasts to 2.1%.te andrews, news editor at the institute of economic affairs. i will start by saying happy independence day! how can he get to the 3% target? it is independence day! how can he get to the 396 target? it is looking more and more like an uphill battle. what isa and more like an uphill battle. what is a crucial points of getting that growth rate is getting through tax reforms. despite the fact that republicans have a majority, there is so much fighting going on with them and so much disarray that it doesn't seem like those things are going forward at the moment. my guess is that the imf and others are looking at that and thinking, those targets a re looking at that and thinking, those targets are not going to be hit. if donald trump does not get these major policies through soon, we will not see this occur in time to give him credit for the 3% growth rate. he needs to stop tweeting and deal with the issues on that table. talking about the trade agreements, he discussed but a lot in his pr

the imf was well known ahead of the referendum.uropean union. you might ask is this driven by these concerns? well, the ins said they are not making that link. they say it reflects the fact the british economy got off to a weak start on the growing just not .2% in the first three months. —— the imf said they are not making that link. but they are not making that link. but they maintain their view that over time leaving the eu would be negative for the british economy. looking further ahead, we have a figure of 1.5% for next year from the imf. that word forecasts. i know. how accurate have they been in the past? economic forecast inevitably mean predictions about the way people will behave. we know how unpredictable people can be. they are not measured any worse than any others. the general pattern of economic forecasts is that they are reasonably good if they are forecasting a short period. but they are not good at anticipating the impact of major shocks and they don't do well on forecasting major turning points. it is common sense

or do you rely on the imf forecasts as well? >> we do not rely on the imf forecasts, they are typically six to eight months behind the market. this is old news. focus for thee near-term, and a little bit beyond. the unusual thing about the federal reserve, with the indications they have been giving is the passive quantitative policy tightening, the scaling back of the bond holdings is a program which is a commitment for multiple years. they are pre-committing to policy several years in advance. that is very unusual, but i think will be significant for markets in shipping expectations about where we are headed. francine: on the fed, you say it is their job to communicate longer-term incentives without giving investors too much of a panic on a day-to-day basis. >> absolutely. the fed is trying to influence where the economy is going in 2019, not today. they are trying to consider were inflation will be in 2019. you have inflation which is not far off of its long-term averages. we're hovering around the 20 year average, including o

with the republican from arkansas on russiaic of of the challenge and europe and imprecations for the imf treaty and army modernization. [captions copyright national cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] look to me or to andrew. i will handgs off, things over to andrew hunter to introduce our first speaker. good morning, everyone and thank you for joining us. i'm andrew hunter, director of the defense industrial in desk -- initiative group. this event is an collaboration between our two programs. for those who of wondered about the definition of collaboration, we are giving you a demonstration this morning. it's my pleasure to introduce senator tom cotton to give us some great remarks and a preview. senator cotton is the senator from arkansas. he serves on a number of important committees in the senate including near and dear to my heart, the armed services committee. he also serves on the intelligence and banking committees and chairs the economic policy subcommi

so, that discussion will be on stage with christine lagarde later today at the imf conference, and i'll be sitting down with madam lagarde as well to talk about whether institutions are failing globally so be sure to tune in as we bring that conversation to you live on cnbc tomorrow. gemma, back to you in the studio >> karen, thank you very much for that best of luck for the conversation this afternoon. should be fascinating. we look forward to hearing it tomorrow. >>> now, switching tack. u.s. earnings season could see record returns, according to s&p capital iq the company expects growth to be led by energy, financials, and information technology energy earnings alone are expected to jump by 387% jpmorgan and wells fargo are expected to announce their earnings later this week well, i'm joined by peter rosenstrike, head of market strategy at swiss bank thank you for joining us >> thanks for having me. >> let's talk about what we expect out of the q-2 earnings season first of all, do you have such positive expectations? and second of all, is this yet factored into where stock prices are

it ends years of speculation on whether the imf would join in another rescue.he uk's foreign minister has promised to make considerations to minimize the effect of brexit on japanese companies. that is according to the japanese foreign minister speaking in tokyo during boris johnson's visit. china central bank has boosted supplies of cash and financial systems. the pboc added millions of dollars. monthshe most in six after demand driven by tax and dividend payments pushed the rate to a four-week high. hasi arabia's king overhauled the company's security agency. agency has been created that will be linked to the office of the prime minister , a title became also holds. king also holds. north korea's economy is growing faster than its southern neighbor, helped by military spending, including the testing of nuclear weapons. korea,ng to the bank of it expended by 3.9% from a year earlier. from three point 9% -- global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top

yvonne: plenty to watch this week, including the imf latest economic update, fed decision, and u.s.est now jakarta. great to have you come about what is the theme it you will be watching as you wait for key releases this week? imfhen we talk about the and gdp, let's get those out-of-the-way. percent to 3% to that we have not been able to break out of since the global financial crisis. the lasta key wants, time the imf updated its economic forecast, the mood music was much more positive about all regions of the global economy finally starting to show signs of growing in the same direction. we don't know what the report will say, but let's look for some continuity in that language that waspril and now the most upbeat the imf forecast had been for some time. 3% we have, 2% to not been able to break out of, not great, not terrible. this expansion is getting long in the tooth in the u.s., still 2% to 3% after eight years is pretty good. yvonne: pretty good. we've been hearing of this global synchronized recovery, but japan and china better than expected, so maybe some upgrades from the i

the imf coming out and adjusting its overall outlook for the kingdom.ginning perhaps of further pain as it tries to adjust to the structure of this economy that is still so dependent on crude oil? fabio: yes. this change in the growth forecast is not surprising. we have to remember one thing. world,ople ignore how real and nominal growth calculator. producesa country that one million barrels of oil for 20 years and nothing else. this country would have zero real growth. what would really matter for this economy is nominal growth as the oil price fluctuates. it is this movement that will drive the economy. for saudi arabia, where the oil price is one of the main factors, clearly when oil prices are week from a historical point of view, the consequences or the economy are unavoidable. thewe need to remember that same way as the oil price can go down, it can go back up quite fast. therefore, we have seen that for the time begin -- time being, $50 per barrel has been a sort of threshold that has preserved the oil revenues for all the major exporters in the

growth forecast citing fiscal policy uncertainty imf expect growth in the u.s. context to come in at 2.1% this year and next year, that represents a revision from april. i asked the economic counselor at the fund whether the trump administration target of 3% is attainable >> it's a challenging goal the u.s. has not grown at that rate for awhile. at least not on a sustained basis. while we could see the quarter or two of 3% growth getting there on a sustained basis would be hard given some head winds we have seen in terms of productivity, growth, and demographics. >> the fund is looking fairly constructive on the outlook for china's growth prospects are looking strong with growth pinned over 6.5% this year and the next although talking about debt levels and nonperforming lows as a source of concern. commodities exporters look as though they'll continue to have a rough time with down grades suffered by saudi arabia for 2017 and 2018. but the bright spot looks as though it will be the eurozone with growth expectations bumped up by the international monetary fund, a

it is also on the imf website. deal would only be effective if it meets -- makes the debt sustainable and faces more structural reforms. it urges greece to open up its products and services market. it comes back to rehabilitating the economy and financial sector of the economy. $1.8 billion. yvonne: given how this is just a point,onal deal at this this issue could arise again when we have german elections in the fall. there is the question whether the greece will receive -- whether greece will receive funds from the imf. in a roundup of stories daybreak. subscribers go to dayb . it is also available on your phone or at. find the assets you care about. this is bloomberg. ♪ yvonne: this is "daybreak asia," i am yvonne man. david: and i am david ingles. we are both here in hong kong. earnings out of india, reliant industries, jumping 8.6% from a year back, powered by chemicals and refining. net income rising $1.3 billion. sales soar at 20%. another has invested billion in southwest, sneering almost 10% in the coun

. >>> and greece is the word at the imf.he big money baouthilt at wall street will be buzzing about today. ♪ (music plays throughout) ♪ ♪ ♪ ♪ ♪ >> welcome back to "worldwide exchange." let's get you up to speed on the market action. a slightly positive open yesterday we were basically flat the nasdaq was the only one that was positive another record all-time close. the other two were below flat. expecting a relatively flat open today. let's look at currencies that was a big mover yesterday the broader dollar index hit a fresh low not seen for 11 1/2 months the euro was a mover higher after mario draghi's comments were interpreted as hawkish. the euro hit a high yesterday not seen for almost two years. it is extending those gains today. 116.56, extraordinary to see it up at that level elsewhere we have a bit of dollar weakness. >> the imf agreeing in principle to approve a new greek bailout the group says it is prepared to back a new loan worth 1$1.8 billion if eu creditors can provide more details on greek debt relief measur

merkel, the imf called for a system with consistent rules forgaavoring international trading. annette ta is liis live in hambg >> thank you very much we arrived in the media center of the g20 venue in hamburg. next to me is the secretary-general of the oacd. let's talk about what you expect from the g20 in terms of economic policy message to the world economy. >> first of all, our diagnosis about the world economy is that it's better but not good enough. you know, we need to work on a number of areas. remember in the g20 we committed to have an additional 2% growth from 2014 to 2018. of course we are lagging behind. we are not yet there this is 2017 so we only have one more year to get there. so -- there were about 1,000 different policy commitments that were made by the governments. so we have to revise and review that commitment. but also there are a number of areas where the only solution is collective how do you deal with trade how do you deal with the issue of climate how do you deal with the issue of migration how do you deal with the issue of a successful digital policy

well, the imf doesn't think so. they have now downgraded growth forecasts to 2.1%. is avinash persaud, emeritus professor of gresham college and chairman of intelligence capital. let's start with that 3% that donald trump is aiming for. can he do it? it doesn't look likely. business confidence remains resilient, but they are still praying for lower taxes and lower regulation. but the us isa taxes and lower regulation. but the us is a consumer driven economy and consumer confidence remains in the doldrums. politics is part of the problem. president trump was sworn in on the 20th ofjanuary, so it problem. president trump was sworn in on the 20th of january, so it has been five and a half months. his campaign was very forthright and emotional. he has a majority in the house. you would think that by now, he should have achieved a lot. what is your perception of the situation? the striking thing about the trump presidency from a policy perspective is the absence of policy. he rode this populist wave that he could solve america's problems with a few big solutions, simple

the imf treaty applies only to the united states and russia. countries on the european perimeter. and particularly of china for the freedom to deploy intermediate range missiles. moreover the lack of these missiles in russia's arsenal deprived rush of a potent tool to gain leverage as it always seeks to do. vladimir putin has resulted ambivalence in a simple way, cheating on the inf treaty. by state department accounts russia has been testing a new cruise missile that can strike western europe at least 2008, at least nine years. the obama administration warned the kremlin to cease-and-desist. the state department formally declared russia in violation of the treaty in 2014 and every year thereafter. no surprise that according to media reports russia has deployed two battalions of intermediate range cruise missiles. vladimir putin is eating his cake and getting in the habit too. russia remain secure in the european theater by the absence of us cruise missiles while vladimir putin developed a new missile that counteracts china and small countries on periphery and divide nato politica

and i set up the process and let out the options which led to euro missiles and thus the imf. later on, in 1998, got to visit base.er ss20 were none deployed in east europe, they were deployed across the soviet union. i got to kick the tires of the replacement, the ss-25. thank it was aimed only at the u.s. and not europe. i also studied lots of the russian ballistic missile programs. the cruise missile would be mounted on a transporter. i never found any evidence that the transporter was nuclear. do you know that this cruise missile is nuclear? in fact, i found opposite views on the in utility of nuclear weapons. sen. cotton: i don't want to comment on the intelligence about intelligence weapons systems that have been reported in the western media. i will say that the destabilizing nature of missiles in europe is not limited to nuclear missiles. it's also the case that any other kind of high expose of warhead can be inherently destabilizing europe as well. that's white russia in its soviet form wanted to eliminate the entire class of weapons, not just limit the number of thos

we will talk to the finance minister about the imf. up right here on bloomberg. ♪ guy: 8:43 a.m. in london. good morning. this is the first word news update. is confirmingu.s. that a rocket launched by north korea was an intercontinental ballistic missile. it was a new escalation to the threat of america and its allies. united nations security council is the holding closed session today after u.s. ambassador nikki haley requested it be held. south korea and the u.s. also conducted a joint ballistic missile drill early today. the u.s. federal reserve could today give clues on whether it will begin reducing its $4.5 trillion balance sheet before another rate hike. that as it really to its minutes for its last meetings at 7 p.m. u.k. time. rates in june signaled one more hike this year and how able gradually unwinding the portfolio. janet yellen says the process could begin relatively soon. she left the precise timing a mystery. russia is set to be poking back at any proposal for oil production cuts and oppose the idea and an opec meeting

the imf is expected to discuss the new credit line for greece tomorrow. venezuela has rejected president halt atrump's call to rerouting of the constitution that would consolidate the power of its socialist government. speaking during a lastly tell of meeting,ally televised the president said he was reviewing countries relations with america in response to the threat of sanctions. brexit negotiators have acknowledge frustration on both sides over the uk's divorce from the e.u. but there are signs of progress. second day of month the sootiations in brussels officials delve into the details of the main issues they want to make headway on. as well as the rise of european national u.k.. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg top . the rally continues in equity markets and the bond market here in asia. you have the regional benchmark index higher .8 consecutive session, holding at levels we have not seen since december 2007. solid buying coming t

avoids ahe imf now major restructuring of eurozone government planes on greece.s to be a major cloud on the horizon and needs to be addressed definitively. the constant delays are unacceptable, especially given that greece has outperformed on the primary surplus over the last year or so. vonnie: given what you are saying about greece and the debt burden is shouldering, is the 5.03% return on 10-year debt and accurate reflection of the risk you are taking? charles: one never quite knows whether the market prices on any given day aren't accurate reflection of the underlying risk. you have a really good question there. i think the fundamentals in greece are still very challenged. i think the decline of investment, the remaining high levels of unemployment, and many of the jobs that have been created over the last year or so are part-time jobs. that the reality is such that in order to really create the momentum for investment, this remaining debt burden needs to be addressed, needs to be addressed definitively. if that happens, you will actually see meaningful gains

the imf says 2.1% this year and next year.ype of fiscal stimulus, tax reform -- ashley: from your vantage point, do we get anything done in d.c.? >> i don't think so. maybe, you know, maybe doing nothing is good for the economy. let's face it, we are looking at reduced regulation of business. that appears to be helping the economy. ashley: yeah. >> that's helping to boost be equities. we would have been worse off otherwise if we didn't have that. ashley: but taxes are still high, obamacare's still in place -- >> yeah x the one thing to worry about is consumer spending, existing home sales. what are the pillar -- one of the pillars hosing up household expenditures is housing, and that may be softening. we will be in trouble if we begin to look at year-over-year declines for unit home sales. ashley: so much is dependent on the consumer. what's the psyche of the consumer right now, do you think? >> i think the consumer is perhaps cautious, getting tired. it's an old economic recovery. a lot of pent-up demand has been spent. howev

what we're hearing, bids from central banks, from imf. client-bankingor activities.n that clients are getting ready for volatility? >> absolutely. volatility has been historically low. people were worried about the fact that volatility was not there. this is one of the many indicators. the main one is the market sentiment. gettingre, clients are on average more than what we have seen in the past. ralph: -- manus: is that just on the likes of equities? are they looking across asset classes. where is the most prevalent interest? >> equities, equities and equities. traditional and fixed incomes are huge.people are sensitive to that . they're are looking for performance on the fringe of the market. yous: i get together with and you said that the holy grail for me is china. i read the news and i see a billionaire out of the trap. mau. he wants to create a $3 billion wealth management business from zero. is it getting harder to do the business offshore in china? give me a sense of china in terms of momentum. >> we are getting to a perfect constellation for wealth managemen

but the imf has downgraded the outlook for the united states and britain for 2018.orders at all costs, leads the south china morning post, the strongest warning yet from beijing to india over a month—long territory dispute in the himalayas. the row erupted after indian troops tried to stop chinese soldiers from building a road in an area claimed by both china and bhutan, india's long—time ally. the philippine star covers president rodrigo duterte's second state of the nation address. he warned his controversial war on drugs will be unrelenting, and defended imposing martial law to tackle an islamist insurgency on the island of mindanao. dominating most of the papers in the uk this morning, including the independent, is the heartbreaking decision by the parents of the terminally ill baby charlie gard to end their legal battle to keep him alive. and the daily telegraph warns consumers who buy internet—enabled devices such as televisions and refrigerators are potentially leaving themselves open to hackers.

and also reviewed by the imf and also reviewed and also we have evaluation, we have assistant to review and see our system -- we think we are better. and we are open to see. >> pretty remarkable offer from the qatar ee central bank governor saying the country would open its accounts for outsiders to review and audit to look for evidence of terrorism financing, they claim there's none of it there this means the response we are waiting for is from the bahrain east and saudis as to how they will proceed we heard from state department in washington they expect this to dragon for weeks, months, perhaps even to intensify. >> dylan, thank you very much for bringing us the absolute latest on the ground we unfortunately have to take a quick break. while we're out, check out world markets live our blog runs throughout the european trading day >>> welcome back to "street signs," i am gemma acton on the move, european stocks head higher, following solid gains in asia, strong u.s. jobs numbers. >>> but i didn't mean it president donald trump proposes and plays down creation of u.s., russian cyber se

attention will be on what imf says about the chinese economy and any possible effect on the uk economyit talks. the us website webmd is reportedly being sold to a private equity company. the company is estimated to be worth more than $2 billion. according to reuters, negotiations are being made for an all—cash deal. the company purchasing will add it to their portfolio. a driver death linked to ta ka ta portfolio. a driver death linked to takata is portfolio. a driver death linked to ta kata is being portfolio. a driver death linked to takata is being investigated. it is the 18th that had he recorded worldwide related to auto parts made by the automaker. more than 2 million cars have been targeted in a recall in australia since 2009. the japanese company filed for ba n kru ptcy japanese company filed for bankruptcy protection last month. it should be a smooth commute for japanese workers this morning. the 24th ofjuly japanese workers this morning. the 24th of july has japanese workers this morning. the 24th ofjuly has been designated the start of the olympic and paralympic day of telly

the managing director, christine lagarde, said the move is a possibility because the imf wants to increaseerging markets that become more influential and get larger. it has been based in the us since it was established in 1945. being the first employee at skype can be an oppressive thing to have on a regimen. he has since gone on to become an adviser to the prime minister of estonia. he has also build up transfer, an on line remittance service which has built up remittance service which has built up more than $1.5 billion. what led him to his latest venture? it was during skype that i realised how banks are undeserving and overcharging customers for many services, including transferring. i realised it was a problem that needed to be fixed and i found a better way of doing it. i realised hundreds of millions of people around the world would benefit. big established names in this business include western union and moneygram. how do you compete? we are based on doing something great for customers. it is the reason people use it, because we are fast, low cost, and we are very easy to use on yo

imf. the rest of the world picking up economic slack as the u.s.ooks weaker, a story that will get wall street attention. happening now, opec and nonopec ministers gathered in st. petersburg, russia, they're holding a meeting to discuss global oil output. speculation is swirling that the group could ask libya and nigeria to join in on production cuts right now, both those opec nations are exempt from a deal among major oil producers to cap output more on this later in the show, certainly crude prices hovering. see if that has any impact 45.94 marginally, third percent higher. >> steady friday, dropped in advance of the meeting curious to hear what happens there. >>> in washington, president trump meets with a group of people the white house is calling victims of obamacare he will then make a statement on health care. in a warning, he tweeted if koips don't repeal and replace disastrous obamacare, repercussions will be far greater than any of them understand >> tweeting quite a bit this weekend. >>> in other washington news, the president's son-in-l

are back than they had the imf protests.t on in toronto when obama was president, nothing new has been going on for years and years. what if rudy decided to go over there and just starts speaking at some event critical. he would just be trashed by the liberals saying how could you go over there? >> you can't trick h me. i think republicans like giuliani would never be protesting against the big business, the industrialist, tha anticapitalist. >> laura: all those people voted for hillary, all those big business people. >> i think goldman sachs pretty well represented the trump administration. i do think what's interesting to me is a lot of trump peoplen i think would identify with the anti-globalists, anti-free trade message coming from these protesters. >> i think juan has a good point. there's a lot of hypocrisy. there is any or any president of the united states who's actually anti-globalists, it's donald trump. that's the position he's taken on trade. actually i think this shows you >> laura: they don't even understand. y

[laughter] alaa: i asked the imf about this in april.m, textbook either target with interest rates or delay subsidies, subsidy cuts. they said, we prefer interest rates. as we saw, the cuts went ahead. it was a surprise and the upside for many people, because the increases were much larger than was expected. on inflation, before the subsidy move, you talk to people in the tell you, month on month inflation is stable. month on month we have seen the trend stabilizing go down. the 30% annual rate is to an extent due to base effects that would moderate toward the end of the year, and the forecast is that by the end of the year, it will still be in the high 20's, but will go down in 2018. again, that is the reason why the market is so surprised. a lot of people don't really get , again, how do you -- if the transition mechanism is perfect, why are we raising interest rates 400 basis points? tracy: as you suggested, let's bring in our economist. what is your read on the interest rate hike? is it about inflation or something else? are we neari

instead of asking for more reforms and austerity measures, the imf wants a debt relief for greece from european creditors. this year the economy is expected to grow 2.2%, that thanks to the growing tourism sector. greece is going to welcome a record 30 million visitors of this year. that is all from the business desk. a strong offshore earthquake has hit a number of holiday resorts inin greece and turkey. two tourists have been killed and another 200 are injured. the 6.5 quake struck overnight in the aegean's the. --a gen -- the aegean sea. correspoent: this greek island was hit the hardest. there is damage on every street. restaurantnts, shops and h homee devastateded the centerer of the island, usually buzzing with people at night is covered in rubble. holidaymakers were enjoying themselves here when the earthquake struck without warning at 1:28 a.m. the quake also caused a minor tsunami, flooding the harbor. those whwho witness it werere sn by t the expxperience. >> pretty surreal, like a movie. ran downstairsnd joinedd everyone else. >> the floor wasas still shaking violently, we h

with the republican from arkansas on russiaic of of the challenge and europe and imprecations for the imf treaty and army modernization. [captions copyright national cable satellite corp. 2017] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] >>

let us discuss their prospects formervid lavender, a coordinator and economist at the imf. to see you. is it more than just a moniker now? what do you make of these? it seems they have more differences than any unified common thread these days. david: i think the concept of for investors is very important in highlighting how quickly economic and political power is shifting from the developed world to emerging markets. i think bric, just like the fragile five, it was always a better acronym than any kind of new world order. these are very different economies. you have commodity importers and g7,rters and unlike the they are not military allies. you have thousands of troops facing off against each other in india and the chinese border. they are not all democracies. very different political systems and geopolitical interests. goes to show the growth trajectories of the four far and it brics so shows what you are saying here, g #btv 8568. you do see on the one side, the top, where china and india were seeing growth rates of 6%. you take a look at the bottom side with russia and