are too afraid to go to the imf. the imf puts some real draconian austerity measures on countries that get their financing. countries did not want to go through that in the middle of the crisis. they would point to us and said you spent $17 trillion. we can't borrow from you to starve ourselves. they tightened their belts and went to the capital markets where they can with this more expensive financing. they have taken on a lot more debt. they estimate about $600 billion in distressed debt just this year. it will be tough to pay it back. the g20 is set to repeal the debt service suspension. just as we are about to appeal this, if because of all of the inflation fears and the tightening we may have had in the industrialized countries, we are not only going to see more cost of finance and less finance going to developing countries, we are going to see what we saw at the beginning of 2020. a reversal of capital flows and balloon up that debt. then we have a real crisis on our hands and we are going to need a reform to t

we have a little bit more on the imf, guys.haad: janet yellen coming out and saying there is not a basis for any leadership changes. yvonne: it goes to show that she is keeping her job, the treasury secretary speaking on behalf of that, the u.s. not seeking to oust her. evergrande may miss some payments, but its electrical vehicle unit not boost from a local government in china. this is bloomberg. ♪ yvonne: you can see what markets are pricing in right now, and we did get that moody's downgrade when they ask for that extension for one of their bond payments these are escalating as we speak, guys. rishaad: this background of major cash flow troubles, which the company admits. you've got the ev unit saying it will deliver its first electric vehicle next year. let's get to rebecca. when they started this off, people were going, hang on, a second. it seems we are getting a little bit of news in a sea of bad news that is fantastic news. it rebecca: it could've may be increase the value of that unit as it looks to sell its assets. it

the imf.o one has raised questions about the imf's data integrity. this is an issue that relates to doing business report at the world bank, and the imf data integrity is as high as it can be. tom: within this crisis, are we at the point where marginally, we finally give way voting and governance power from the european nations of bretton woods over to selected emerging markets, particularly in asia? mohamed: we have had this governance issue repeatedly. you and i have been talking about it for decades. the governance and representation of the imf still represents the world of yesterday, not the world of today and tomorrow. what we are seeing is little pipes being built around the imf and the world bank because other institutions are deemed to be more representative. so that is an urgent issue, and europe has to take the lead on this issue. jonathan: we talked about this great divergence this week because of the imf. let's talk about that from a "central perspective. we have had interest rate

he certainly lived that at the imf.mphasize now that you have to watch the ilio syncretic like turkey -- the idiosyncratic like turkey but with respect to the other dynamics. jonathan: tom keene, lisa abramowicz, jonathan ferro. we will talk a little about football, inflation, and why the economy is slowing and could slow more quickly. an interesting one coming up. equity futures up .4%. this is bloomberg. ♪ >> an exclusive bnp paribas open update for bloomberg. the first finals are set and indian wells. clinching his second come back win in as many days to reach the final four. the victory was the bulgarian's 100th at a masters event and his first in two years. he will face cameron norrie. on the women's side, she continued her excellent run with a straight-set win. the win puts the 23-year-old within reach of her made in 1000 crown. don't forget tennis channel's exclusive daily coverage aired daily at 1:00 p.m. eastern. it's moving day. and while her friends are doing the heavy lifting, jess is busy moving her xfinity

gita gopinath, imf chief economist, joins us now. talk me through the number one thesis behind that, and what is the downside risk to your outlook? gita: always a pleasure to join you. when you look at the projections and look at the advanced economy group, next year we predict advanced economies to be back to pre-pandemic. but if you look at any emerging and developing economies, we are looking at very significant scarring. even 10% relative to where they would have been. this is the divergence we are extremely worried about, and it has two factors. one is highly inequitable access to vaccinations, especially with low income countries, and the fact that policy support has been much larger in advanced economies as compared to many emerging and developing economies. guy: in terms of what is happening in the developed markets, the fear at the moment is that we are going into either a inflationary ward -- inflationary world or a stagflationary world. what gives you confidence that inflation is going to fade as we work our way through ne

what are you expecting the imf to say today?— the imf to say today?sally, i think it is sounding _ the imf to say today? sally, i think it is sounding more - think it is sounding more bearish, go back to thejuly forecast when it was 6% and revised it up. this time around inflation forecasts are going to go up and the provisions will be mostly on the fourth quarter of 2022 and 2022 forecasters want to look out, they are looking at the downward revisions for 2021 four us, the euro area, mexico, brazil. china and india, any revisions are going to be modest. they would be looking for bigger revisions and 2020 to, again with the euro area and japan. to, again with the euro area and japan-— to, again with the euro area and japan. to, again with the euro area andjaan. , , .,~ ., and japan. give us your take on this line that _ and japan. give us your take on this line that the _ and japan. give us your take on this line that the imf _ and japan. give us your take on this line that the imf has - and japan. give us your take on this line that the imf has gone

so the imf downgrade to around 3.4% is within that.our revised forecast, but i don't see where there's a lot of ways you can forecast nowadays because things are subject to a lot of uncertainty. but we are very confident with our revised forecast because we have accelerated our vaccination program. if i remember right, we have vaccinated around 80% of the adult population and were going to start vaccinating the young ones from age 12-17. we have 107 million doses. so we are doing well. so that forecast from the imf is based on past numbers. kathleen: the second quarter was negative on a quarterly basis. what do you think of the third quarter? are you going to get positive growth, or a lot of people are worried it might be negative again. >> the gross domestic product grew by 11.8%. we are confident the third quarter will be positive. kathleen: do you have a number on that? >> it's too early to say, but we are confident we will hit our reside -- revised forecast of 4%-5%, and 7%-9% for next year. kathleen: the peso is down to a 17 month

it has nothing to do with imf data. in our case, incredibly seriously which is why we have processes in place to make sure data and focus are in line, reviewed carefully by multiple departments and economies. with any institution, we are constantly working to ensure higher standards for our data and for our research and work. >> thank you. for the next question, david from reuters. >> thank you. just to follow-up on that question in terms of steps, what the treasury asked to do and what the board said it would need to consider, what specifically do you think is required here to ensure this integrity? also related to inflation questions, central bank needs to be prepared to act quickly if inflation expectations look like they are becoming unhinged, what will you be looking at to measure that? if you determine whether or not inflation is really much more durable than what we think it is now. thanks. >> on your first question, the board made clear that the constants in their impartiality and analytical work of the imf. tha

that it had full confidence in my leadership at the imf. so i can rally the fabulous half of the imf, work with our processes over this panel to address the half strategies we face. we talk about the pandemic, we had the quality and of course i take it to heart that we have to strive always to demonstrate that what we do affects positively people and i think part of what we have done at the imf is to mobilize incredibly strongly to help our members and i am confident. i'm confident that you will see the imf do that with the integrity of our data as always. you're right, we have to always work for the public trust and that's what i have been doing for 40 years. >> you've been asking for accountability and transparency on this very panel. the credibility of the international organizations have been eroded due to various controversies not least that of the imf or the world bank and the issue that we've just been discussing. does the trust need to be rebuilt?>> i'm looking forward to strong collaboration continuing with imf and with crystal eno

that is the thing the imf is looking for.it comes to inflation, the imf is looking for to 20% in 2021, up from 2.4% when they previously forecasted. they see it coming down to 2.3%, bit optimistic. here is the chief economist at the imf. >> we would like to see broad-based inflation again at the kind of levels we are used to seeing. the question is, if that spirals out of control, about the comfort range. there, we are not seeing that. kathleen: the report had a lot of concerns, a couple of them stemming from the idea that inflation is rising, and this could create a were some for financial markets were suddenly, if the markets get in trouble because of covid, there won't be room for central banks to help them, at the same time, rising rates may be hitting stock prices, may be hitting home prices which have written so much. there's also a risk that the financial stability side. rishaad: iron ore extending declines, futures dropping by more than 5%. [indiscernible] taking a slightly different tack on price rises, wasn't she? k

the president hosted an official from the imf the presidential palace.uthorities in lebanon are seeking aid to lift the state from one of the most punishing economic crises on record. talks broke down with the imf last year when the previous government could not agree on key fingers. the newrime minister said his government has finished the data needed for cooperation. he hopes to sign off on in a program by the end of the year. staying on the topic, the imf says the middle east and north africa can expect significant economic growth. gdp is slated to expand by 4.1% this year. inflation and and equality have dented the recovery. the imf stressed e importance of theecovery in lebanon. >> what lebanon needs today is to have a comprehensive package that will allow the economy to recover, address the debt issues stability issues, help lebanon curb the ilation a stabilize the currency, and deal with the scars that if inflicted the economy after the blast of august 2020. reporter: a lot of the issues facing the region are amplified in lebanon, rising prices, a

i the imf, are they right, in your you view?— the imf, are they right, in your you view?pointing - your you view? i think they are not wrong in pointing out - your you view? i think they are not wrong in pointing out that l not wrong in pointing out that the cryptocurrency system is unstable and needs more stability and we can't throw the eggs in one basket at this point in time. there is still a ways to go to call the ultimate financial tools. 50 ways to go to call the ultimate financial tools.— financial tools. so what do cryptocurrency _ financial tools. so what do cryptocurrency have - financial tools. so what do cryptocurrency have to - financial tools. so what do cryptocurrency have to do| financial tools. so what do l cryptocurrency have to do to become legitimate in the eyes of banks and central governments?- of banks and central governments? of banks and central covernments? , ., . governments? first of all, there is — governments? first of all, there is no _ governments? first of all, there is no standard - governments? first of all, - there is no standard regul

at 9:00 a.m., the imf director talks ahead of the meeting. central bankers, tom keene, everybody they're trying to talk about the road ahead, especially if the u.s. and europe lose economic clout. how do you get more economic clout for the behemoths like china, especially with the credibility gap increasingly growing among policymakers. later, we get the fomc meeting minutes. when did they start tapering the monthly bond purchases? it also has to do with the rate hike idea. 2-year yields at the highest level to have been since the height of the pandemic. despite the fact that transitory is a dirty word, despite the fact that treasury secretary janet yellen says it is in effect, and this is transitory. jonathan: the atlanta fed making headlines yesterday, lisa, thank you. tom, what is in store in washington? tom: damage control at the imf. they have been doing this for decades. it is not going to jump the shark. it is a different meeting. yesterday, all eyes were on the managing director and how she is going to come out of the uproar that she

the imf following closely the inflation picture. the imf now expects output to expand 5.9% worldwide this year. 0.1 percentage points from one of the anticipated in july. the imf chief economist spoke to alix steel and guy johnson following that report. >> next year we expect advanced economies to be back to what they work in the absence of the pandemic. many emergency -- emerging economies, 5% of their out loss and 10% relative to where they would've been. especially with low income countries. >> in terms of what's happening in the developing markets, the fear of the moment is that we are going into either an inflationary world or stagflationary world. what gives you confidence that inflation is going to fade? >> when you look at the facts in terms of how countries have rebounded to pre-pandemic levels this is a strong recovery that we have seen. we still have the global economy . in terms of inflation, our view is that most countries by the middle of next year coming back to typical pre-pandemic levels of inflation. some of the co

for the imf world bank meetings.was me in new york -- here with me in new york, lisa abramowicz. in the bond market, treasury yields lower by a basis point on tens to about 1.566 4%. euro-dollar, $1.1559. in the commodity market, -0.6 percent. mike mckee is ready to break down cpi data in just a moment. after that, neil dutta of renaissance macro, the head of u.s. iconic research. all of that is next -- u.s. economic research. all of that is next. this is bloomberg. ♪ jonathan: cbi in america is seconds away. from new york city, alongside tom keene and lisa abramowicz, i'm jonathan ferro. your equity market update points. we advance .2%. with your data, here is mike mckee. michael: these are not the inflation numbers jerome powell was looking for. cpi up .3% -- up more than .3%. at this point it is a .4% gain. .3% in august. over the last 12 months the all items index is up 5.4% before seasonal adjustment. food and shelter rose, contributing more than half of the all items index, the decks for food at home up 1.2% on

this is a tradition of our imf and world bank meetings.pozen joins us, the president of the peterson is just stupid -- institute. in a classic moment, a number of years ago, with among others, a guy named bernanke on inflation, targeting. we will get to that in a moment, but john, i understand how sensitive and woke adam pozen's. -- pozen is. jonathan: his last 24 hours, help us out with this one. i would love your reaction. we have a generation of central bankers who would define themselves by their woke nests. they can -- they defendant -- they defined himself by how socially concern they are. >> i do not think that is fair. if you want to worry about woke, yes, there are universities you can worry about, there are various individuals. the central bank is not stomping on alternative voices, it is not saying you can worry about inflation because we are too worried about unemployment. there is open debate. i just hosted the federal reserve bank of atlanta president at the peterson institute earlier this week. he gave a speech that sounded

will not seek to remove imf's managing director. the lenders borders preparing to decide on her future after allegations with improper actions during her time working at the world bank. the u.s. position likely backing from european nations, including france and the u.k.. potentially clears the way for them to stay in their job. jamie dimon is forecasting tighter regulation for cryptocurrencies. this ceo told the institution of finance that i'm glad to be around stable coins in the asset class more generally is growing in washington. it differentiated between personal stance and how jp morgan will deal with it. >> i think bitcoin is worthless. i don't care, it makes no difference to me. our clients are adults and they disagree. if they want to have access to buy or sell bitcoin, we can give them legitimate, as clean as possible access. merck has applied for emergency use -- vonnie: merck has applied for emergency use authorization. risk of developing illness that may require hospital care. if approved, it could be the first oral ant

not with the research at the imf. we were very explicit in recognizing the integrity of imf staff and research. >> two ports in california will begin operating 24 hours a day, seven days a week to ease a backlog. the ports of long beach and los angeles are seeing similar traffic jams. -- will be the ones. >> the port handles a third of the united kingdom's freight. but the bottleneck of cargo has led to a backlog that could take months to shift. >> i think there will be some disruptionhis christmas as a result of the shortage. retailers are adept at making sure that they prioritize things people want, making sure that ople's christmas favorites are available to buy. >> the world's largest container shipment firm is available for transfer to avoid the queues. such problems are global. the u.k. exit from the european union on top of the pandemic has exacerbated the problem badly. at shops. used to empty shelves 40% of the container tradeove and the u.s..se ports to eope as demand outstrips supply, workers are struggling

the imf is meant to clarify details on the report.he economist, who risks losing her seat, has denied the allegaons. she detailed in the statement efforts she has made not to favor any country, including china, writing, "the idea that after nearly 20 years of the world bank, i would suddenly start pressuring big staff inappropriately to change information in a report is outrageous and untrue." the process the alleged data rigging came as the world bank tried to expand its lending capacity and it needed several countries's support, including china. several economists have supported her, saying the probe was an attempted coup aiming to block more progressive policies pushed by the bulgarian economist. yuka: meanwhile, the world bank says the covid-19 crisis has pushed the debt burden of four countries to a record level. --oor countries to a record level. it says the collective debt burden of low income countries rose 12% to $860 billion. the world bank is calling for a company plan to bring poorer countries debt to sustainable debt -- s

you're starting out with a new report from the imf about europe's economic recovery.ate: the imf a few weeks ago trained its global forecast but it is more optimistic about europe. latest projections see the economy extending 5.5 percent in 2021, 5% for the eurozone. gdp in france and york -- u.k. drawing 6% while germany, contracting less last year, set for modest recovery. high inflation remains a concern especially in advanced european economies. earlier i spoke to the imf's spokesperson about rapid price rises. >> higher inflation is obvious across the european union, but we expect these inflation rates to fade out in 2022, because many of thes are temporary and the rebound in the oil price is one of those. there are gas prices fading out in the second quarter of next year. natural shortages and supply chain, we would exct to oil to stabilize over time so we are expecting an inflation rate below the inflation target set by the ecb. kate: european governments are trying to phase out their emergency aid, brought in during the pandemic. that is a delicate balance and

janet yellen says there was no basis for a change in imf leadership. also won support from european nations including france and the u.k. germany's social democrats met with coalition allies for more than 10 hours of discussions yesterday. the greens urged that relief for pandemic hit e.u. nations while the business friendly free democrats reaffirmed no tax increases. speaking to debt limits. for more hours of talks as olaf scholz continues his bid to succeed angela merkel. thailand unveiled a roadmap to revise its tourism reliant economy by -- vaccinated visitors. visitors from 10 low risk countries including the u.s., china, germany, and the u.k. will not be required to undergo isolation on arrival from november 1. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. dani: thank you sonny -- thank you. juliette saly in singapore. it tries to root out corruption. we will have that story for you, next. this is bloomberg. ♪ ♪ dani: welcome back t

earlier today the imf released its world economic outlook. the forecast discusses the coronavirus pandemics affect on local economies . this is about 40 minutes. >> thank you for joining the imf world economic outlook. i'm jennifer beckman of the invitation department and i'm joined today by the imf economist. the deputy director of the research department the republics and head of the world economic studies division model on the far . we're going to begin with brief remarks and then wewill turn to your questions .>> thank you all for joining this work league on the world economic outlook. the global recovery continues but it's followed by the pandemic. fueled by the highly cranston submersible delta. we call it the global covid-19 death toll has driven close to 9 million and help concerns rebound holding back a full return to normalcy. pandemic outbreaks including global supply chains have resulted in longer than expected supply disruptions feeding and in a quality in many countries. overall these prospects have increased and policy trade-of

why do you think that is >> well, i made it to the imf board. the imf board took it.listened to my side of the story and they provided full confidence for me to do the important work that the fund is charged to do. i thought it would be just fair to make the same offer to the world bank but, look, this is not important. what is really important for the world is what happens at the g20 summit what happens at cop 26 and i'll tell you i was with the staff this morning discussing these big challenges and feeling very energized by this commitment to do the work that matters to our membership. >> our thanks to kristalina georgieva, the head of the imf i followed up and then asked her, we didn't have time to play it, what is the imf's role then on this battle for supremacy, whether it's on trade or geopolitics around taiwan or just yesterday the u.s. banned the chinese telecom company. and she said we're here for all the countries and all of our member countries, which are almost 200 of them always good to hear from the head of the imf who says inflation may now last until t

a beleaguered imf director, i guess she stays on board, and on and on. how odd is this october?annmarie: --annmarie: it is pretty odd, as you say. there are a number love balls in the air. when you look at the debt ceiling today, the house is going to vote on that. we knew look at avoiding a government shutdown, it is all just being punted. we will be dealing with this again in less than two months. on infrastructure talks, we did hear from speaker pelosi in a letter last night saying that what she is hearing is overwhelmingly that there should be a focus on less issues, but done well. potentially we are getting a little more movement and closer to what that social spending package is going to look like. tom: tell me about international. is there any focus in washington on our vaunted european allies, the tensions with china as we go into imf world bank? or is it sort of pandemic odd? annmarie: this morning there is going to be a virtual meeting between president biden and other heads of state. italy is hosting this for the g20. this is focused on afghanistan because all of the

a congressional approval for future allocations and does not allow americas representatives to the imf to vote for in favor of a country that has committed genocide in last ten years, repeatedly supported international term -ism. likewise with china, now the largest creditor in the world, they are not a member of the press club. that's no longer unacceptable reality. with the growth of china's belt and road initiative, there's a concern that countries borrowing from beijing will be overburdened, falling into overpriced debt traps. this may force rescue by the international financial institutions, complicating their ability to underwrite loans for new projects. these nontransparent, predatory lending terms should no longer be acceptable to the imf, the world bank, or the global system. we are considering the well-being of emerging country financial needs, this is in the way. tin this regard, i initiated a legislative directive to the multilateral institutions to insist on transparency for sovereign borrowers from china. my bill in the last congress, the ensuring chinese to transparency

the imf chief or china -- four china, he is assisted in the asia-pacific region.n. there is so much going on in china. china is the big story for the global economy right now. let's start with gdp. you revise the forecast from a .4% to 8%, then we got a big deceleration third-quarter gdp growth, many analysts revised by a good amount. do you see the possibility that the 2021 gdp number for china will coming even weaker than you thought? >> we third there is additional risk. [indiscernible] lagging consumption. the risks are correlating, global supply issues, microchips , the property in developing sector. we are accumulating [indiscernible] kathleen: the imf saying the projections reflect financial tightening on real estate investment. evergrande is a big driver. topic of a risk does this post of the economy? >> for the moment the risk is contained. we have seen some firms being troubled, the risk within the sector and more broadly to banks. i think that has to do with people understanding the outcome as the tools. doesn't mean there is no risk of escalation. ther

the imf seems to be endorsing that. i to be enough. imf seems to be endorsing that-— endorsing that. i don't think there is any doubt _ endorsing that. i don't think there is any doubt at — endorsing that. i don't think there is any doubt at all. _ endorsing that. i don't think there is any doubt at all. they use - endorsing that. i don't think there is any doubt at all. they use the l is any doubt at all. they use the expression _ is any doubt at all. they use the expression large scars to the economy _ expression large scars to the economy. in 2022 particularly. and downgrading their forecast. i sunpose _ downgrading their forecast. i suppose there is happier news which the chancellor has been trumpeting that in_ the chancellor has been trumpeting that in this — the chancellor has been trumpeting that in this year, the current year things— that in this year, the current year things have — that in this year, the current year things have gone particularly well in the _ things have gone particularly well in the uk — things have gone par

he started resuming these negotiations with the imf, and the world bank and the imf and the international community at large have a lot of responsibility in what is happening with lebanon. in my opinion, the eventual bailout that will happen, which is just a bailout of the banks, similar to what happened in the united states in 2008 after the cup -- after the financial crisis there, we are hearing a lot of talk about sending off what remains of the state assets, further devastating the public-sector and limiting any possibility for a social or economic change. i am offended by the international community,@@ which holds a huge responsibility in constantly allowing the politico -- the politics of the past to repeat themselves and preventing the will of the people to be assumed. amy: can you talk about the role right now of covid and how it is affecting the population, and also the victims of the beirut port blast holding a sit in at the palace of justice? lara: the families of the victims and people who were injured, almost 10,000 people were injured, over 1000 permanently disabled or maime

it sets the congress approval in allegations and does not allow american representatives to the imf to vote for sdr allocations to countries that have committed genocide in the last ten years or supported international terrorism. likewise with china, now as the largest creditor in the world, they're not a member of the paris club. that's no longer an acceptable reality. with the growth of china's belt-and-road initiative, there's a concern that countries borrowing from beijing will be overburden, falling into debt traps. this may well force rescue by the international financial institutions, complicating their ability to underwrite loans. these nontransparent, predatory lending terms should no longer be acceptable to the imf, the world bank, or the global system. when you're considering the well-being of emerging country financial needs, this is in the way. in this record, i initiated a legislative directive to the multilateral institutions to insist on transparency for sovereign borrowers from china. my bill in the last congress was included in the fy-2021 national defense authorizati

pretty sol jid the imf is warning of the threats.ges and bottlenecks and highlighting what it called the divergence of countries on the recovery. for the u.s. the imf cut groetd forecast a full percent taj point to 6% but still healthy. 2022 got a boost to 5.2% from 4.9% and there's news on the imf and the drama of the head of it. kristalina georgieva charged that she did -- they came out in support of her including the number one voter most importantly the united states of america. janet yellen had a call with her last night and she did back her and said the allegations raised legitimate issues and concerns and steps must be taken to reinforce data integrity and credibility at the imf the job of the managing director is safe for now. and i think the question is whether the biden administration could get blowback for backing her especially in the attempt to be tough on china. the evidence ultimately according to the board members just wasn't fully there in that report that she really intervened enough in the time. a ceo of world bank

yvonne: the imf credits growth forecast to 6.5%. down from 1.1 percentage point of the april outlook. still the fastest growing region in the world. the expansion in india, southeast asia, where covid continues to spread. china's forecast was trimmed to reflect outbreaks and fiscal tightening. rishaad: let's get some insight with tuuli mccully. thank you for joining us. but case we had the imf being too optimistic, or is there a significant slowdown taking place? >> i think the key issue here is the outlook for asia-pacific is complex. we have issues on the domestic side and the external side. especially the external side, it is concerning. it has been the cornerstone of economic recovery in the region. now the outlook has been challenging. several issues, a weakness in china, supply chain issues, as well as advanced economies reopening and shifting demand dynamics from goods to services. there will be less of export growth in asia in the coming months. rishaad: it is really all the same things. this ramp-up in commodity prices on t

the fate of the imf chief as the board reviews auctions..s. is the fund's biggest shareholder with 16.5% of the vote. secretary of state antony blinken has criticized china's actions toward taiwan, saying their part of a --they are provocative and destabilizing. he spoke with us about the phone call between president biden and xi jinping. >> for spoke on the phone a few weeks ago and had a productive conversation covering a lot of issues. whether they will have the occasion to get together in the weeks or months ahead we will see. they are likely to participate in some g20 meetings for example. but they had a good, productive conversation and will continue the work that they set out. >> we have seen incursions of chinese plans taiwan. is there a redline you think presidency -- president xi jinping will not cross? are tensions high? >> the actions we have seen by china are provocative and potentially destabilizing. so what i hope is that these actions will cease because there's always the possibility of miscalculation, miscommunication and t

imf world economic outlook will come out. g20 trade ministers will meet in italy.te is the eu green bond sale. interested what kind of demand we will see. i cannot imagine how oversubscribed it will end up being. guy: i imagine we'll see substantial numbers tomorrow. what do we have coming up next? you and i will go to radio. alix: this is bloomberg. ♪ >> from the world of politics -- >> this arbitrary debt ceiling process i think we ought to get rid of entirely. >> to the world of business -- >> paper not going back to the service sector because they see it as unreliable. >> this is "balance of power" with david westin. ♪ david: from bloomberg's world headquarters in new york to our tv and radio audiences worldwide, welcome to "balance of power." congress may be taking a short break right now but the white house is hard at work trying to move president biden's economic agenda forward despite the resistance. for the state of play right now we turned were washington correspondent joe mathieu, host of sound on weekdays on bloomberg radio. thanks for coming to us from

in the interim, do you need to go to the imf? is the imf route turned off? >> it is not necessary at the moment because we are comfortable about making the repayments in the january and july payments. we have got certain other inflows also lined up. at the same time, i did not respond to your earlier question. the global commodity prices have been rising. that is one of the reasons we need to ensure the rupee exchange rate is also not rising and we have a reasonable exchange rate so the vices of commodities in sri lanka, particularly oil as well as gas do not go up to a high. the imf would have asked us to keep the commodity prices to be reflect did in the condition -- to be reflected in the conditions of the commodity. we are also looking at new inflows. it is kind of a program we are putting in place that could sometimes -- that is why we believe without inflicting any pain to her creditors, since we are able to manage, we don't want to any further because we are comfortable about making all the repayments. rishaad: we mentioned other funds. tell us what t

our economics editor is outside the imf with more. >> the post lockdown recovery is getting messy.t is the message of this important meeting of finance ministers and central bank governors. compared to this time last year, in the depths of the pandemic, as we have heard, the economy is growing. jobs numbers are better than we thought they were going to be. however, that good news has not spread equally around the world. developing economies with low vaccination rates are a particular source of concern. even in advanced economies, there isoncern about inflation. we already see on international markets that expectations of interest rate rises at the end of next year for emergencyoans are being pulled forward, potentially even to this year in december. a recovery yes, but imperfect with a trade-off as regard to interest rates and inflation. >> our correspondent reporting in washington. you are watching bbc world news america. still to come. making a statement in the comic book world. the son of superman comes out as bisexual. ♪ >> the international criminal court in the hague's hearin

bonnie glaser, just some lines crossing for the imf.he board did not need to discuss the report that has been surrounded around -- and her fate right here as the lender's chief after some discussion. there was also an investigation into a previous job for the world bank on trying to manipulate some of the data to reflect better when it comes to china's ranking. so the imf is saying they have made further significant progress today, but we have heard sources say that the decision, whether she keeps her job or not, could come as early as today. plenty more ahead. this is bloomberg. ♪ rishaad: looking at evergrande again, another week with a hundred $50 million in offshore dollar bonds do today. tell me up out the latest advocacy effort. >> one of the big ad hoc committees having advice on contingency plans if evergrande falls off on the assets of which they are relying on, so, i mean the other interesting fact is that they are potentially looking at the law to try to advocate for their interests. i think there is complexity when it comes

with the imf be concerned? it is most important to support the economy in the near term. in the medium-term, we do expect to see fiscal consolidation in japan. a specific date by with the primary balance -- reaches balance, i should say, is not what we focus on this moment. it is mainly that once we get past the covid pandemic, to have a credible medium-term consolidation. reporter: i would like to ask you, what is the most important change that needs to occur as a response of covid, in other words in the aftermath of everything going on, what would you like to see next? >> i just the first question continues to be, of course, support the economy. as we move, it is to think about how resources in japan need to be reallocated to promote growth over the longer term. certain steps i think i've already begun in japan. we think it's very good this focus on digitalization of japan and the creation of the digital agency. part of the reason is we find that japan, despite it being a technology leader in many areas, it i

members of the eu and the united states, as well as the institutions they dominate, the world bank and imfve cut off the income to the afghan government. it means development assistance, lending programs, all those kinds of things pumping money into the enomy. separately, the u.s. has frozen nearly $10 billion in government assets held by the federal reserve. it has also maintained existing sanctions on the taliban. all of these things, the u.s. and western allies hope will give them leverage over the taliban government to get the kind of action they say they want to see before they end up recognizing the taliban, if indeed, they do. >> barbarathank you. at the virtual meeting of world leaders, tury's president warned his country cannot bear the burden of afghan migrants fleeing the taliban. many afghans make the journey across iran into turkey hoping to go from there to europe. they already have the largest population, around 4 million people, mostly syrians. our correspondent reports from the turkish border province. >> turkey is cracking down. on those who sneak across the border. even

tom: it is the only order of conversation in washington, the imf and world bank meetings. the quality, the character of this inflation. we are data-dependent. we will have to wait to see what more inflation is. you heard it in the president's comments, it has political attention because the public feels -- they don't care about the dallas trim meeting. jonathan: you can't take out food, you can't take out energy. that t-where it is facing a bigger challenge. lisa: the only person sticking with it is janet yellen. everyone else has a swear jar to put dollars and every time they say the word transitory. every metric of red going up dramatically. in some cases at the highest pay since 2001. you can't strip it out and it takes away from discretionary income. jonathan: up 30 on the s&p. yesterday we snapped a three-day losing streak on the s&p 500. we add some weight to yesterday's move. big ranks reporting through the morning. lisa will guide you through the times to put in your diary. yields unchanged, back towards 150. one 53.16. euro-dollar just about reclaiming the 1.16 ha

the world bank and imf are having their annual meetings right now. and there is obviously a lot of questions around the leadership. does president biden have confidence in the leadership of the imf and the world bank, given questions about the integrity of the institution and concern about china's influence of international and financial institutions where the u.s. is still the biggest contributor. jen: i believe the treasury department did express concern about a report recently issued. otherwise, the president does have -- continues to have confidence. >> the president's commission on review of the supreme court is wrapping up its work this week. >> did they present their findings and have a chance to review them for what is public report? jen: this is like a day of processes, how fun. the commission will release the discussion material tomorrow, which is their deadline, and they will meet that timeline. these have not been submitted to the white house for edits or feedback, and the release will be followed by a public meeting of the commission on

the imf now expects the global economy to grow 5.9% this year. that's slightly lower than its july forecast. the 2022 outlook remains unchanged. the imf slarshed its foyrecast, the highest than any g 7 economy in this forecast. in all this news was a choppy day for forecasts. all three main indices rebounced before dropping a third straight session. dow jones down 3/10th of a percent. s&p 2/10 of a percent lower. third day of losses. investors are anxious and worried ahead of the consumer price reports and earnings from major banks. they are worried companies will cut forecasts due to supply chain problems and rising labor costs we've been bringing you on the show. this is how futures looked when trading begins in just a few hours. really mixed day. dow futures pretty flat. we'll keep an eye on those numbers for you. >>> now, the wyoming coroner who did gabby petito's autopsy is gathering details. it has gripped the country for weeks now. cnn's leyla santiago has the story for you. >> death by strangulation and manner is homicide. >> reporter: th

shery: are one of those fronts being the imf?he biden administration is the fading -- debating the fate of the iof chief over a scandal involving china. >> certainly one thing in this report and the audit, though -- it shines a light on the geopolitics behind the bretton woods institutions. the political calculations that went into the 2018 doing business report where wilmer hill audit found that current imf managing director krista lean agre jefe during her part as a top official at the world bank put pressure on staff to improve china's score such that the country would stay steady instead of falling. that was in the 2018 report. last week, our reporting showed that currently -- world bank president explored changes to methodology that would have actually potentially hurt china's score in the 2021 report that would later pause and finally terminate it. seeing the geopolitics between the u.s. and china playing out at these two institutions, just a couple blocks up from the white house, always mindful of the global reach of their

the imf says it'll start looking for a replacement soon.it comes just days before a critical deadline for evergrande to pay some of its offshore bondholders. there's fear of the potential spillover effect on the chinese economy caused by a collapse of the property giant. the uk's financial conduct authority has fined credit suisse over £147 million for serious financial crime due diligence failings related to loans worth over us$1.3 billion, which the bank arranged for the republic of mozambique. these loans and a bond exchange were tainted by corruption. credit suisse has also agreed with the fca to forgive us$200 million of debt owed by the republic of mozambique as a result of these tainted loans. a new initiative to force the global shipping industry has been announced. spearheaded by the aspen institute, it is asking participating companies to switch all of their ocean freight to vessels powered by zero—carbon fuels by 2040. it's already got some big names to sign up, including amazon, unilever and ikea. samira hussain reports from new

and so, what steps is the treasy taken to ensure the world bank and the imf are safeguarded against corruption by the chinese communist party pretty. >> we reviewed it one of the reports, we saw issues that were a serious concern and that is why the secretary demanded that they look into this closely by speaking to the lawyers and speaking with the managing director. the basic evidence we reviewed, we did not find it was appropriate at this point to remove the managing director but we did make it very clear during those meetings and directly to the managing director changes needed to be made to ensure that whistleblowers are protected and that integrity of the institutions are protected which is our overarching goal and that we will be holding her in the other leaders in international financial institutions accountable for making these changes. >> i think that report highlighted concerns about conflict of interest and hope that you will continue to work with us to ensure transparency as you hold the imf and the world bank and agencies like this accountable. to prevent are being infl

advocacy and sets congressional approval in the sbr allocations and does not allow recommends of the imf to vote for allocation to countries that committed genocide in the last 10 years or repeatedly supporting international terrorism. likewise with china, now as the largest creditor in the world they're not a member of the paris club, that's no longer an acceptable reality. with china's belt and road initiative that beijing would be into priced debt traps and this may be rescue by financial institutions complicating their ability to underwrite loans for new projects. these nontransparent predatory lending terms should not be acceptable to the im-- when you're looking at financial needs, this is in the way. i initiate add directive to the multilateral institutions to insist on transparency for sovereign borrowers to china. and my bill, the china transparency act was included in the 2021 national defense authorization act signed into law, this will help develop a global multilateral effort to assure more scrutiny of china has a nation. and the same standards as used by the financial insti