there's no rationale for imf tax dollars and associated with that american dollars with part of the imf fundsing, for those to go to bail out chinese bond holders or china itself >> north korea is part of theenda pacific region numerous times during all of the events in helsinki -- excuse me, singapore. both you and the president and other world leaders referred to the opening of the u.n. economy. has kim jong-un ever expressed more desire to have more market forces is he interested in changing that economy in a way that is fundamental? >> yes we've spoken to him about a brighter future for north korea. we've spoken to him about the importance of allowing private dollars to come in not just dollars from the united states, although i'm confident there will be americans who will want to invest in a an open and rules based north korea. but japanese and south koreans too will want to be part of the economic opportunity there is in north korea. we told chairman kim if we can denuclearize your country there is a brighter future for the north korean people. we're convinced he too shares that u

that is adding two expectations of an imf deal to come. any agreement would limit the new leaders pledged increased public spending. although pakistan economy is projected by the imf to grow by 5% this year, it is running a budget deficit. 10 days ago, the central bank said it only had $9 billion left in for its -- foreign-currency reverse, prompting a move for sinking finance elsewhere. >> in spain, taxi unions meeting with officials today and talking about ride sharing apps. stephen: they met in barcelona and madrid. drivers want government to restrict the number of licenses given for companies like uber. this is the latest excavation over -- escalation about industry that is growing. booklet a blockade in -- barcelona, the government is stepping in. they are meeting w with the thre main taxi unions to consider the demand that authorities restrict the number of license issued to drivers working for ride hailing apps such as uber. traditional taxi drivers say ride hailing taxis is no longer being enforced. >> they have been promising thin

imf is warning about the

the imf are saying we are being too sanguine. if we look at emerging-market --rencies, we will see that they have not been as volatile since 2011. can see that in this implied volatility chart. from the currency perspective, it does seem that there are jitters. perhaps they are not being sanguine. do you agree? yes.: sanguinehat people are that the trade effect will not be as severe as the worst case. i agree with that. i don't think we are being too sanguine. i think this is an ongoing intle that will be resolved a way that will end up being good for markets. resolutionwill get and as someone mentioned, the timing is key to the u.s. position. rishaad: do we carry on with tit-for-tat until then and perhaps everything carries on? if we go to november we will get to a situation where it has already happened, there is a war going on and it is hard to put a fire out. >> there is no question, no one with the trade war. some will do less poorly than others. this is a drag and it shows up in many places around markets. u.s.se stocks, mu

the imf warned and so did larry fink. are we complacent? >> i would like to think i am not that larry fink is a must certainly right that the markets brought attention to the pro -- geopolitical risk. they seem interested in the trade war and protectionism but not much more on that side either. the, weu talk about talked to people about the models, how much damage a trade war does. and you suggest that a number of those estimates show a reduction in world gdp over a few years but they overlook the impact it could have an certain sectors. >> there are consequences that will roll out through the potential trade war which are being ignored by markets for the time being. inevitably they will wake up to them at some point and are expected to see a hefty reaction. the numbers are significant when you talk about two or 3% over three years, that is a serious hit to global growth. anna: the imf is hoping its estimates, talking about a more fragile global outlook. u.s.do not tweak down the numbers nor the global growth number. this,oes to the heart o

meanwhile, the chief economist for the imf warned not so much about trade.s big concerns for the u.s. is something jay powell will be asked about. what is that going to do to the economy? let's listen to what he said. jay: we think u.s. growth will fall as the effects of the current fiscal stimulus begin to wane. less government spending and the reversal of tax incentives, and furthermore, the u.s. is growing way above potential, and that cannot continue. when you put it all together, this is another thing. jay powell mentioned he thinks tax cuts are boosting the economy for some time, but that is one more reason there is a need to be raising rates. when he gets before congress tomorrow, democrats will want him to attack trump's trade raise questions about tax cuts. so a bit of a minefield politically. yvonne: we will see if he actually, you know, talks -- overlooks it or whatnot. the one thing we cannot overlook is a flat getting yield curve -- flattening yield curve. his potential is that it is not signaling recession, but we have heard from other fed offi

120 billion. as zimbabwe owes the imf i20 billion.sorry, i do not wa nt billion. can ijust, sorry, i do not want to. pacemaker can ijust billion. can ijust, sorry, i do not want to. pacemaker can i just ask a question. you said as we anticipate, what you mean that? you mean if emmerson mnangagwa is elected or dimming of the opposition leader gets in? —— can ijust ask your question? zimbabwe is actually, whether emmerson mnangagwa winds, they still have two engage with the international creditors. this is the first opportunity in a very long time for zimbabwe to fix the economy and there is a clear commitment on both sides of the political divide to deal with the economic challenges that face the country, and that includes having a clear macro fiscal way to deal with the currency issues. 0k. thank you very much indeed forjoining us. we really appreciate your time. so that some on some of the critical issues facing zimbabwe. as we have mentioned, the polls there open in around about 25 minutes's time. people have been queueing since abo

and you got the imf treaty. now the russians are violating it, but maybe that's a story we can talk about in a bit. stabilizing features, really startin the start i and ii treaty signed under george h.w. bush, but the groundwork was set in negotiations under reagan. you have heavy bomber accounting toes to give an advantage slow flying, stabilizing systems. you had a reduction by one half in heavy icbms, a ban on future onms, a limit of 10 warheads future icbms. so, reductions in the most dangerous, destabilizing systems. ii,go farther with start where the sides agreed to abolish all icbms. i can imagine's the russians would have accepted that if we icbm,t have that type of me c which we had with peacekeeper. afterfter, arms control start ii, those features, those major features part of the reagan legacy get very much weekend. the moscow treaty 2002 is just about numbers. new start has verification, but weaker than the start treaty. there is no limit on the warheads per missile, so the soviets can do their super

even before the meeting, the head of the imf warned that trade tariffs could wipe out $430 billion, orlobal economy. since then, us president donald trump has gone further. his country imported over $500 billion worth of goods from china last year but he told cnbc that he was happy to impose tariffs on pretty much all of them, and the imf warns that the world's biggest economy could shrink 0.8% of gdp because of its tariffs, and china, the eu and others have already begun imposing does. steven mnuchin may be defending us policy, but others are certainly been quite vocalin but others are certainly been quite vocal in opposing it. the finance ministers warned in a joint statement that trade tensions risk undermining the global economy, and there is a lot of tension in the meeting itself. europeans complained about tariffs being imposed on aluminium and steel. for example, an eu commissioner warned the us action is inappropriate and that europeans are allies and not foes. the french finance minister said in a statement that we refuse to negotiate with the gun to the head. it must be the u

well, you know, in the 1970's and 1980's, they used to call them imf riots.hey were caused by austerity policies will stop this is part of it. this is what triggered it. you're the six-month period where haiti was supposed to make these reforms in order to get a loan from the imf. this is s something people also don't know because it is not emphasized enough, but he imf had power in poor countries where it they don't give a loan, then they don't get money. for example, haiti was going to get money last week, approved from the europopean union and te intra-developmental american, and you don't get money from anywhere else if you don't get it from imf. the imap was and yet to cut the subsidies to gas and kerosene, energy. , obviously, you know, there's a certain rationale to this. it is that like the subsidies are progressive in terms of income distribution. yet the majority of the country living under $2.40 a day, 58% economy has, in the been stagnating for years. so people are on the edge. you can't just cut these subsidies. the government thought without pro

the imf warned the eu can expect to see a all in gdp of 1.5%. uk's closest neighbor, ireland, will suffer even more because of its shared border and close trade ties. if you hit the gdp parallel with britain's at nearly 4%. plantrst waste to energy is opening. it ain't the tackle a growing waste burden in the capital and whose power supply in the country. not everyone is pleased. the 50-year-old dumpsite is a lifeline for local residents these if this cap which are recyclable waste. reporter: this mountain of rubbish. with some 300,000 tons of waste and enough -- ending up here every year. the newly built plant is set to turn garbage in a gold by generating energy from the methane arises from it. >> you are talking about 185 gigawatt hours of electricity generated input to the main grid. lights will bed from this facility. the 120 million dollars project is a collaboration between the ethiopian government and a british company. officials say the plan will hire 1500 people. not everyone is excited about the prospect. finding value in the rubbish

the imf director of research told bloomberg protectionism is a misguided impulse.ou risk a slippery slope where everybody loses. i think if we can reach a more effective global multilateral system, that will help diffuse some of the trade tensions that can be associated with excess global imbalances. ramy: for more on trade and the greg,y, let's bring in joining me here in new york. thanks for joining us here. looking at the markets right now, it's interesting because there has in earnings versus trade tensions story, clearly today it's an earnings story. when should we be a lark for tensions to come back? greg: that's the big question. what we are seeing is positive earnings news on the back of fairly positive tax cuts and encouraging momentum in terms of economic growth. the have to be wary that these tariffs have only gradually started to be implemented. as more and more are implemented, then we will see more and more uncertainty on the business front and more and more increases in inflationary bessures, and all that will generally negative for the economy. i wo

imf warning about a major hit to the irish economy from no deallj imf warning about a major hit to theereof, our own finance minister said said last week that a no deal scenario could lose out because of the collectivity between our economy and the uk economy. even two weeks ago, angela merkel, the german chancellor, made the point is that ireland could face liquidity issues in the circumstance ofa liquidity issues in the circumstance of a hard brexit. we must be aware of a hard brexit. we must be aware of the real threats therefore our own economy in a no deal scenario. i know full well that is not the position of the uk government, they wa nt position of the uk government, they wantan position of the uk government, they want an agreement. the eu wants agreement. we have got to really make it work between now and october to see if we can get this deal and give certainty to people in the uk, ireland and across the eu. today of all days, as we have these talks, and theresa may, as we mentioned, looking at the border issue there. when we looked at these problems over the last two years,

there's the work done on the -- using the imf's global model, they said what if the u.s.ariffs on all imports, and everybody retaliates 10% against the u.s. but not anything else between europe and china, you have the world economy slowing by almost 1%, but the big story is the u.s. that drops by 2.5% >> you mentioned europe and china not working together yesterday we had european leaders meeting with chinese leaders to try to deepen and strengthen the trading relationship that's the same day that the u.s. launched these complaints against the tariffs. is trade the fact their brings down the house donald trump was elected to improve the u.s. economy do you think these measures, these tariffs could blow that away >> i think the -- as far as i can see, the tariffs he imposed. the story about protectionism plays well in some swing states in america i saw an interview with one of the workers at harley davidson after the europeans said that's what we will target, he was on trump's side there's a -- politics is a funny thing. with the help of the media, twitter, truth doesn't c

will be very difficult for him to get a imf bailout, which at the moment the country is looking likemic concerns as well. absolutely. speaking about the election, and we have lots more analysis on our website. hundreds of people are still believed to be missing after the collapse of a dam in a remote part of laos. at least 27 people died. 0ur correspondent, nick beake, is the first western correspondent to gain access to the area in attapeu province and has sent this report. bruised, bewildered and with no idea if their parents are still alive. the stories from the hospital nearest the collapsed dam tell you all you need to know about the ferocity of the flood it unleashed. this couple quietly explain how their one—year—old daughter was swept away. translation: i put my daughter and my wife on a boat. i tried to hold it, but the water was very strong, and the boat flipped over, and my daughter fell into the water. it all happened right before my eyes. it's feared as many as 3000 people are still stranded in this part of southern laos, their rooftops now islands in a murky sea of desp

maintaining its outlook for global growth, but the imf has cut projections for the euro area. germany, france, and the united kingdom. a couple more headlines, trade tensions pose the biggest risk to near -- asset prices face a sudden repricing if growth and profits ebb. with the imf chief and go over some of those who projections and some of those risks to global growth. helsinki, finland, where it has just passed 5:00 p.m. eastern were president donald trump's meeting with russia's vladimir putin. president trump under pressure to confront his counterpart over a meddling and the 2016 elections. just days before the indictments of 12 russian military agents. a news were to hold conference shortly. these are live pictures of the room where the news conference will take place. you can see the podium set up for two. francine lacqua joins us from finland will step in washington, d.c., an expert in russian affairs, will pomeranz. francine, let me go to you first. we don't know what is on the agenda. we have some idea of some of the subjects. i what point will we learn what they di

i would comment support the imf, i also question some of the productions on the u.s. economy as well. >> okay. back in may, on the 23 rerecorded saying that tariffs are on hold. yet, less than seven weeks later, new tariffs on chinese goods went into effect and were immediately met by retaliatory tariffs by china. clearly, other people in the administration were not as interested in keeping things on hold. in the meantime i heard concerns from many different people in utah, industries in utah about the negative impact that they are already seeing from the uncertainty and the new tensions in our trading relationships. just yesterday actually had a small business owner from my office come to my office, the utah metal works and with recycled metals and says about 40 percent of the business over is overseas. they are suffering from uncertainty. and they want to see an agreement be reached, not just the president beating up on trading partners at the end of the day, they want to see some results. it is not going to impact their consumers. do you know what the end goal is?

involvement in the international monetary fund in its recent world economic outlook of the imf expressedconcerns that the prospect of trade restrictions and restrictions threaten to undermine confidence and derail the global growth prematurely. do you share those concerns? >> i also questioned some of their projections on the u.s. economy as well. >> back in may you were quoted as saying that they were on hold yet less than seven weeks later they went into effect and were immediately met by retaliatory tarrifs i've heard concerns from many different people. i had a small-business owner from my office come to my office, utah metal works which recycles metal and it's about 40% of its business overseas. they are suffering from an uncertainty and they want to see an agreement be reached, not just the president beating up on trading partners at the end of the day they want to see some results, but it's not going to impact their consumers. do you know what the end goal is, is there a master plan? we are trying to figure this o out. we know what the end goal is but do you know what the strategy

we'll see a walking tour of the two leaders and the remarks from the ceremony from the imf treaty. this is just you should under 3. [ cheers and applause ] [ band playing ] [ band playing ] [ speaking foreign language ] >> translator: esteemed president ronald reagan, esteemed first lady reagan. on behalf of the people in the government of the soviet union, i extend to you my sincere greetings on the occasion of your visit. welcome. it is now almost six months since our meeting in washington which went down in history as a major milestone in soviet american and in international relations. now on this return trip, you, mr. president, have traversed the great distance that lies between our two capitals to continue our political dialogue. this is a fact we dually appreciate. [ speaking foreign language ] >> would you like to say something, mr. president? >> well, yes, i would. i was just saying to the secretary that i have great admiration for the women of russia. i think you're courageous. i think you contribute to great stability to the whole society. and also to all of you, i think

n fox's j turner >>reporter: the fbi has release the nowam imfs pfizer warrant that gave the intelligence community in october 2016 to monitor former trump campaign carter page. here is the. it reads in part, quote, this fbi believesaghat pe has been collaborating a conspiring there issi pos involve or are abou of theminal statutes of the been release in response toci a judial response and it set off a fir storm her in washington from the white house to the hall s of capital hill. president tmp declari on twitter that theseum docts proved the doj and fbi quote, mislead the courts. page himself is sticking by his original claim that his campaign activities are just busess as usual. i've never been an a of thege foreign power inny a- t ayin s the bugger i may have participated in a a lot of, people from the obamaer administration we sitting on in geneva a paris, et cetera. the heavily redactedded 412 pas admit that the steel doier, the the most conntion elemen was a component of the 2016 pfizer warhint. tre lease should put all conspiracy theories to rest. moi easily be seen by the american

die and good about the impact of this will have lachie weller trade organisation, the rob bagg, the imf—— like the world trade organization, the world bank. if you look at the growth forecast for next year, we will not anywhere near that if we have a full—blown trade war. will not anywhere near that if we have a full-blown trade war. thank you for giving us your perspective. we'll keep you up—to—date with every twist and turn. you can rely on us without. let us talk about virtual reality, now. virtual reality is moving beyond the gaming industry. in asia, more and more companies are using vr as well as augmented reality and it's aimed at getting consumers to interact and engage more closely with the compa ny‘s products. 0ur china correspondent steve mcdonell looks at how the virtual world is catching on in the business world. right now, virtual reality is very limited but i hope there'll be more competition and more people to enlighten this market. these people are fighting zombies, at least in their virtual world. and you can see how physical it is. but if you want to play this game, y

i'm not suggesting the imf tell this to countries that are having economic troubles, we need to do it ourselves. but i think a lot can be resolved with transparency. host: question over here? >> thank you, very much. ukrainian legal group. commend yourto question -- comment on your question on why russia doesn't use soft power. there are a number of reasons. the main reason is corruption. money which can go for soft power to make the country a the pockets of russian bureaucracy, and that is it. that am have the money to make russia effective, because it are keeping the money for themselves. host: thank you. one more question and then that's it. >> i'm from foreign policy magazine. i have a question for mr. collins. in the u.s., in the wake of the russian interference and elections we've seen, this mueller investigation is indictments, and arrests. but in the uk, it's only recently coming into light. i'm just wondering has the uk been caught on the back foot by possible russian interference in the bags it vote, and what is aliment planning on doing to investigate it? damon: good questi

you can do that throughout the countries working with the imf. you can have more and more transparency in the united states, in the so-called advanced countries with regard to the source of cash that's being used, especially in real estate markets. i said this earlier today. in london and the united states, the ability to buy through coercions, through companies that have been set up yesterday, real estate property transferred hundreds of millions of dollars into these countries is a major source of lack of transparency. we need to practice what we preach. i'm not suggesting the imf tell this to countries having economic troubles. we need to do it ourselves. but i think a lot could be resolved with transparency. >> question over here? >> thank you very much. ukrainian liberal group. i would like to comment on your question why russia doesn't use soft power. >> one minute. >> yeah, yeah. there are a number of reasons. the main reason -- the main reason is corruption. money which can go for soft power goes to the pockets of russian bure accuracy. >

cheryl: coming up, things are so bad in venezuela that the imf is forecasting inflation could forecastr. that's incredible. this may come as a surprise, but the housing market appears to be struggling. builders and buyers ahead. we'll take a look at features on your tuesday. strong start to your tuesday market. ask anyone. s&p up five and three quarters are not stuck up 11 and three quarters. you are watching "fbn:am." ♪ gerri: welcome back. let's get you caught up on what's happening now. u.s. features now on the green. about 90 come s&p at 500 up nearly six. nasdaq up 10 and a quarter. good morning. overwhelmingly they the department of veterans affairs but the longtime defense department official has already asked. a private sector defense contract or is. they nearly a $200 billion budget. homeland security officials are warning their russian hackers penetrated u.s. electric utilities last year but they could've caused blackouts. a state-sponsored group and officials say the campaign is likely on going. >> the imf project in venice with this inflation rate 1000000%. that puts venezu

and christine lagard, the head of the imf, said this is going to hurt global gdp, not the tariffs, buta nt to tariffs, but this tension, i don't want to call it a tariff war, i don't want to over dramatise it, but there is a tariff tension at the moment and we need more conversation between these guys to look where they want to go rather than hold their position. the thing is, it seems president trump had a way of dealing with the unfair practices from china if he had gone ahead with the two big partnerships, the trans—pacific the two big partnerships, the tra ns—pacific partnership the two big partnerships, the trans—pacific partnership and the transatlantic trade and investment partnership, it would have created two blocks of free—trade areas that china would have had to adjust trade practices that it wanted to be part of, orface being isolated, yet he stepped back from both of them. he stepped back from both of them. he stepped back from both of them. he stepped back because when he looked at the detail over those deals, from his perspective they were not good deals for the states a

tom cruise, of course, is back as ethan hunt — the imf special agent.e's tracking down some missing weapons—grade plutonium, helped of course by his usual cohorts. so, ving rhames is back, simon pegg is back, rebecca ferguson — who was in the previous film — is back for this one. there is a new boy — henry cavill. we know him as superman in the movies. yes. he's playing a cia agent who's watching over every move that ethan hunt makes. of course, it is action—packed. they say that the traffic in paris is very bad. that's not going to stop tom cruise though, is it? let's have a look. do you copy? we copy, go. change of plans. i'm blown. need a distraction. we're on our way. sirens. honking. sirens. and that sums up the film quite well, doesn't it? pretty much. that, for two hours. that's basically it. i love it, though. very, very slick, isn't it? i thought it was just brilliant. and, you know, tom cruise has been doing this for a long time. it's over 35 years he has been acting now, leading man. and just the energy of the guy and the dynamism of the guy

we will speak with the imf director of research, maury obstfeld. ubs with better than expected results, an interview with the chief executive. what he is saying about trade tensions and global growth. and what is happening to european equities, 30 minutes away from the end of the tuesday's session. stocks rallying today, first gain and investors taking a positive plans on the news out of china today, injecting various measures to boost the economy. better than expected earnings on both sides of the pond. and luxembourg, austria, both up more than 2%. aedish krona is up by .5% and theresa may is going to take control of brexit negotiations. does that mean the u.k. will lean toward a softer brexit outcome? because the brexit department was seen as more harder brexit in its tone. sterling rising on that news. the atlantic krone rising today -- mick cronin rising today. and an appetite for risk today. ubs shares rising as much as 4.2%, the most since april 2017. the wealth management business, which of course counts billionaires among its clients, excl

certainly, if we look at the imf survey that was just reported, where the manufacturing imf earlier this week, there is a lot of mention of trade concerns and supply chain disruptions, and bottlenecks and whatnot, but yet it seems to be something that they are talking about, but not responding to, at least not yet. that could be a different story as things escalate. tonight, at midnight, as you highlighted, we could see how much retaliation really does occur. mark: given that donald trump tweeted ahead of last month's jobs report, whether he tweets or not might be interesting this time. carl: certainly, that will be a focal point of those of us who are really in the nitty-gritty details of trying to discern what the payroll number will be before it is released. my team is that to enter 20,000, so we are a bit above consensus in our forecast, but all eyes will be on twitter in the 7:00-8:00 hour tomorrow morning. i expect he will be reprimanded and will not be doing that again. mark: if he does not tweet, people might think it is a bad jobs number. carl: absolutely. we saw the markets mov

the imf is now praising china's shift to high-quality growth from high-speed growth. mixed messaging here, but overall pushing ahead saying that china is doing fairly well. ahead move ahead, still amazon's better than expected results. will there be more of the same in the coming quarter? achieve investment officer tells us what is driving growth. haidi: and the ecb stays on course for tightening. will get some analysis from constant hunter who is with us. this is bloomberg. ♪ ramy: i'm in new york. haidi: and i'm in sydney. you're watching "bloomberg daybreak: australia." european central bank stuck to its plan and its messaging to in bond purchases as the e.u. steps back from the brink of a trade war. kathleen hays is here with the details. said there's quite a be in the eurozone. kathleen: the three biggest central banks in the world we and the ecb's starting it out next week. they still see rate hikes off in the distance, and a little more andat on euro area growth more upbeat on inflation. his what he said earlier today. >> pressures are strengthening and broaden

the imf says the us is particularly vulnerable to retaliation. world's biggest economy could shrink 0.8% as a result of its own tariffs and those china, the eu and others have already begun imposing. daniel 6allas has been following the 620 meeting in buenos aires for us. there is plenty of tension in the 620 summit of finance ministers over the weekend. the europeans are angry with the us about tariffs being imposed on aluminium and steel. the european commission up financial and economic affairs said that us action is inappropriate and that europeans are allies and not foes. the french finance minister said that the europeans should not negotiate with a gun to their head is about the secretary of treasury from the united states said that an upcoming talk with 67 nations, there will be negotiations about dropping trade barriers altogether. 0f negotiations about dropping trade barriers altogether. of course, the g7 barriers altogether. of course, the 67 does not include china, so that suggest that the us trying to isolate the world's second—bigge

the imf warns a return to a hard border would wipe 4% off its economy. others have warned that this figure could even be much higher. with the deadline looming, the possibility of britain leaving the eu without a deal is becoming more real. and that is getting businesses very concerned. as our business editor simonjack explained. that cushion that we had no longer exists, that gets businesses very, very nervy indeed and why the urgency is reflected in the boardrooms in the uk. it is not a position that anyone in politics or business wanted to be, but a very clear path has now emerged to the edge of the cliff. paul breen is senior lecturer at the university of westminster. ghouta you with us. so with these preparations, contingency plans being made. —— good to have you with us. being made. —— good to have you with us. the suggestion really that is being made is that everyone is preparing for the situation of there being no deal. do you think these estimates, like the 4% here to ireland's economy are fair, are they accurate? i think they are but the point

rishaad: moving into the we haveies theme, blackrock, the imf is looking at trade.bout the commodities output as an environment for trade? the u.s.-china trade war, the locations are twofold. -- implications are twofold. this is having impact on market sentiment in china. how will that translate? this is something the market is paying attention to. that is a downside risk to global growth. the second is the impact this will have on global supply chains and the spread of technology. there'll be more medium and long-term risk and that will also weigh on global demand growth. china accounts for 50% of mining commodity demand, any risks to that story puts prices lower. that is what we saw last week. announcements escalated the u.s.-china trade conflict. the output numbers with regards to china, is that a reflection of what is happening? do you see further industrial output being compressed? in terms of china's industrial economy, we have seen a slowdown for quite a while. the economy is moving away from industry and construction and toward consumption and services. we h

which is why once again we find ourselves in a situation that is requiring the imf, their growth forecasts down towards china, countermeasures, tariffs on steel and aluminum and you can see how lengthy the value chains are, tariffs placed on exports of automotive from the us, german companies have to correct their profit forecasts as well. it is not just about vehicles going from germany exports to the us but 400,000 vehicles built in the us and being exported to the rest of the world, the biggest bmw factory is not in germany but south carolina. this dovetailing has come up in hearings in washington underway about trade issues and that is why we see these tariffs, potential terrorists, and the real risk and danger for global prosperity, and to perhaps stop these things happening. and all of the eu states, he should go -- for europeans through him. to see what comes out of these talks. >> the chancellor talking about a central point of friction between donald trump and europe and in particular germany. >> the eu commission president going to washington to take the european voice to the ame

every what we've heard from president trump so far it's going to be perhaps about the weapons treaties, imf treaty which both sides criticized each other for abrow gating and the start agreement, strategic arms limitation agreement which is due to expire in a few days into it was president bush po pulled out of the imf. they have a legitimate gripe about that. what do his officials say about that? >> syria and arms control will be two things at the top of the agenda. a lot of the overarching what the team theme is going to beings is donald trump trying to have a better relationship with vladimir putin than barack obama did. a lot of things trump has done is trying to one up obama and do things, undo things he did or do things he believed he couldn't do. having a good relationship with putin is one of those things. barack obama and vladimir putin had a very frosty relationship. the president wants to do that. that's why we see him talk so much about normalizing relations with russia saying that has more to do with u.s. decisions what barack obama did and past presidents not that they assault

make no mistake, we'll watch what the imf does. rational for imf tax dollars and american dollars, for those to go bail out chinese bond holders or china itself >> pompeo also discussed all things from the transpacific partnership to relations with north korea. for more head to cnbc.com. >>> president trump headed to florida today. he will talk jobs. all of this as the immigration debate takes center stage once again in nbc let's get more from tracie potts in washington. >> good morning. the president making it clear that he is willing to shut down the federal government if you didn't get it from the tweet, he said it directly to reporters speaking to congress as well. not that this is imminent. there's time here, but the president is making it clear this is part of his negotiation. >> reporter: president trump doubling down on his threat to shut down the federal government over immigration >> i would have no problem doing a shutdown it's time we had proper border security >> reporter: like a border wall? not necessarily, the presi

situation, which is why i believe that once again we find ourselves in a situation that is requiring the imf to correct their growth forecast that, the considerable tariffs we have seen, there are tariffs on steel and aluminum, and the auto industry. you can't see how closely linked the value chains are linked globally, -- you can see how closely linked the value chains are linked globally. germany companies have two correct their profit forecast as well. it is not just about vehicles going from germany, exported to the u.s. there are thousands of vehicles u.s. that are going to the rest of the world. factory is not in germany. it is in south carolina. this dovetailing has come up in aboutarings in washington the trade issues, and this is why we need these tariffs, or potential tariffs, as imposing on wto regulations, also the risk for global prosperity generally. this is one we believe that -- is important. he has proposals as to how we can get into negotiations that could perhaps start these things happening. i would not want to speculate as to any outcomes, but all the e.u. member states

the imf has calculated $430 billion worth of mobile gdp could be wiped out by 202020 if these conflictsre not fixed. france and the u.s. did come to loggerheads. steven mnuchin refused to budge on trade with the e.u., demanding a free trade agreement with no subsidies. people are trying to make this about the united states and protectionism. that is not the case. this is about the united states wanting free and fair trade. >> new tariffs are not justified. they penalize industries, businesses, threaten our jobs, and we refused to negotiate. >> catherine, talk us through what the consequences could be if trump does go ahead with these. >> the tariffs cover just about all of the products china imports every year. if he goes through with that, china said it will retaliate dollar for dollar. some are feeling the pinch of this war as we report. the world'sa boasts fifth-largest economy and china is the number one trading partner. with new tariffs in place on many imported american goods, producers are starting to feel an effect on businesses. last year, american wine exports to china totaled

the united nations, the imf, world bank, nato and the predecessor organizations of the european union and the wto were all created between 1945-1949. and importantly for my story, two of these institutions, the european union and nato, would direct products of the marshall plan. that might sound surprising but this grand project of integrating western europe, economically, politically and militarily was actually the most critical component of the new american strategy at the time in 1947, quarter end quote, containing the soviet union which came from famous american diplomat george kennan. to understand why that was we had to go back a few years further to the war years. during the second world war of course the united states and the soviet unions were allies in the battle against nazi germany. but as soviet dictator josef stalin wryly observed at the tehran allied war leaders conference in 1943, quarter end quote the best friendships are those founded on misunderstandings, and the misunderstandings between stalin and fdr were profound and he contributed enormously to the friendship o

and to get the deploy of the new imf systems and the nuclear systems. it was followed in march of 1983 by the strategic defense initiative. this was a parcel of that, to get us national systems for defense. i have other charts. and if i had an hour, i would run through some of the things that then happened. i'll just mention one other thing, which is in the area of nuclear testing. nuclear testing. the -- when we came into the white house, the state department and others who also mostly favored the freeze, wanted to go for comprehensive test band, they wanted ratification immediately of two treaties that mr. ford had done, limited test band and threshhold test band treaties, no, peaceful nuclear exposure treaty, and there was a test ban treaty that was apparently not being complied with. and all these treaties for disbanding nuclear tests, even down to the subcritical levels, tiny little ones underground, reagan who was not a nuclear abolitionist at all, although one of the most senior people in the reagan administration wrote a book in which he constan