ms. lagarde: yes. mr. kempe: let me get to the issues and let me put together the issues of the asian infrastructure investment bank and the 2010 quota and governance reform. you described the establishment of china's infrastructure investment bank as a massive opportunity. that said, larry summers this week in an op-ed called the u.s. approach to the a.i.i.b. a failure of strategy and tactics and said, this past month may be remembered as the moment the united states lost its role as the underwriter of the global economic system. number one ms. lagarde: if he is right i think the best re if he was right the best response is to ratify the reform of the i.m.f. mr. kempe: you finished my sentence. usually i just steal your ideas. this time you finished my sentence. so that is really what i was getting at. number one, does the formation of the aiib in some way signal a new reality? and in that context, do talk a little bit even more in-depth of this reform. is the jumplet undermining its role as the leading c

ms. lagarde: today we are seeing recovery coming along. forecast of 3.5% this year and 3.8% next year. it is not strong enough. it is very uneven. you mentioned brazil and china you could have mentioned russia. we had a very diverse section at the moment. mark: ms. lagarde said she would not support a delay in greece's debt payment, saying the imf has not granted a payment delay in 30 years. that is a look at the stories we are following. the u.s. housing recovery may be slowing. new home construction rose 2% in march far less than the 16% forecast by economists. an improvement over february. michael is chief u.s. economist at j.p. morgan in new york. welcome back to "bottom line." good to see you. michael: good to be here. mark: the jobless rate is 5.5%. why hasn't that been enough to support the real estate market? michael: one of the biggest issues has been restrained household formations and not a lot of people moving out of their homes. we have seen glimmers that that is changing but i think we will need further improvement in the labor market. mark: by region, housing starts numb

ms. lagarde: we never had an advanced economy asking for delay payments. i hope this is not the case with greece. i would certainly not supported. emily: greek officials told creditors they might run out of money and miss a repayment to the imf. people said greece's latest payment did go through and the warning was just part of an ongoing discussion. microsoft and yahoo! have made some changes to their long-term search partnership. the update gives yahoo! more flexibility over how it makes money from advertising. no longer requiring it to use microsoft to serve ads es. microsoft will handle the relationships with advertisers for bing. a 10 year deal between the two companies that they struck in 2009. etsy shares surged today, the stock opening at 93% 30 one dollars after pricing at $16 a piece. the website raised $267 million in a public offering. the challenge will be for etsy to keep sellers happy while building scale for investors. investors have 62 million reasons to be excited about netflix that is the number of global subscribers the service boasts i

ms. lagarde is part of that to make sure it is a viable and mutually beneficial sustainable agreement.u talk about the repayment your country is making earlier in the conversation. if the imf repayment happens can you give up -- euclid tsakalotos: it will happen. it will happen. yep. guy: that will happen. what is the funding story after that to roll over t-bills, how much money is available to your government to make additional payments that come close to the imf repayment? euclid tsakalotos: i think we have an outside limit as you know, a eurogroup meeting and we are working very hard and advice they a good scenario. and by then greece needs to have had some movement on its funding, the money by the imf and the other institutions and the ecb takes the signals, an independent institution. but our hope is it will accept that we are now committed to this reform program and the process of how these reforms will be implemented. when it reverses all of his decisions, squeeze liquidity and there will be relaxation on both the ecb, the waiver, and the t-bills and funding from the imf. greece

ms. am laying out what we feel is important for standards. >> before you go there do you have thoughts on this? we have christine lagarde, the imf chief here, she was actually pretty embracing and thought that this could be brought together with what they and others are doing and could be of additional value. >> you know, when you are dealing with a situation like this, from time to time you do have to make way to see what we have to offer in terms of any thoughts that they may have and the way in which global financial institutions and the like should be conducted. but i think that the main point here is to ensure that as it is developed that it does not include governments associated with arrangements in the region and i think that the american position outside of the negotiation and the europeans and others, is to try to get into the structure. there are sorts of standards that will give you a level of confidence for what could be a instrument of financial importance and it ought to be put out in this way. this is very much a work in progress and from what we can see from inside and outside they are causing them to a