on tuesday the finance minister will meet with the imf's finance minister will meet with the imf‘s christined and his goal is to finalise a deal that will quicken macri payments to argentina ofa quicken macri payments to argentina of a $50 billion loan package, in exchange for that, argentina will announce further spending cuts in its budget. edward glossop is a latin american economist at capital economics, and joins me now. good morning, welcome to the briefing. give us your take on this week, very important for argentina, isn't it? absolutely. the first thing, as your correspondent suggested, is we will have signs from the imf about how much more they are willing to give to argentina. second, we should have clarity on the fiscal plan, to try to restore the lost investor confidence. what i was describing before, we heard that from daniel, the immediate measures the government is trying to do to prevent the collapse of the peso, to try to prop up things, these are very short—term measures with immediate knee—jerk reactions often in the wrong direction. yes, in many ways we've seen the emerg

investor concern grew about the government's ability to finance itself. o discuss is this is our correspondent. what actions have been the most market reactors? >> the key thing here is took two presentations and a more concerted effort at what will be their efforts to decrease the deficit. to maked they will seek the deficit to zero in 2019, when your earlier from what was previously agreed to. that is supposed to bring confidence to markets. we are still concerned a week in a peso will raise convocations for the country's financing needs in the next year. taxes may prove to be unpopular with the sector, it may boost revenue further. caroline: the peso continues to fall, down .8%. i was told the imf might be able the nexttability in few days. is there stability for those in the street and for those in the market? >> we are seeing trade with low liquidity. definitely, the market will be looking to see what tomorrow's reflection on the currency is. see thather hand, we the peso may have overshot with weakening a bit last week. that may find stella stabiliza

economy ministry the finance minister the governments can do about that other than try and address other factors that are helping to put downward pressure on the on the repeats so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. amik plan is india going to be forced to follow suit. well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that its response to what is a much more significant. currency crisis facing turkey as has has been a adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that is arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out its tuckey's policy response india's not quite in the same situation as turkey turkey has a much large

the financing of these projects.ies such as pakistan, for instance, many of these deals, the financing arrangements around the deals are not clear, so there are some concerns there that the chinese, the local governments are overpaying for chinese contracts. david: the initial set of chinese loans over the last few years, a lot of it has gone to countries with very poor governance. venezuela is a big borrower, sudan, angola, pakistan, these are countries that may very well run into debt problems. but here is an important but, indonesia is a big borrower, south africa, eastern africa countries. so i think china has some good clients, bad clients, and what you would expect is that the project would work out in the better managed countries. >> at the same time i would say that there is a tendency for people to focus on the deals that were done five years ago but have only just come to market, whether it is a port or rail project. when you are deeply involved, as we are, in these projects, you see some of the deals being

caroline: this is something the market has started to get used to. financeister is less political than the more populist deputy primee minister role at the moment. who is set to be believed when it comes to the budget? blowout the e.u. deficit rules? -- could they blowout the e.u. deficit rules? >> if they do that, italy would have a lot of cash available for reforms. let's not forget they promised hefty tax cuts, some sort of income for the poor, reducing the pension age. all of that is expensive. they need to get the money somewhere. the issue is whether they will try to do everything at the same time because they cannot pick and choose because this is a coalition government so each group has its own program, or if they will do the logical thing and phase it in slowly. that would be doable without going over 3%. everyone thinks the finance minister is a reasonable man. risen against the german. hopefully, reason will prevail but we just don't know. caroline: we have seen yields on italian debt spike up on concern he could be forced out. how have the ongoin

economy ministry the finance minister the governments can do about that other than try and address other factors that are helping to put downward pressure on the on the rupee so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. my plan is india going to be forced to follow suit . well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that its response to what is a much more significant. currency crisis facing turkey is has been a nice adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that has arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out it's tuckey's policy response in india is not quite in the same situation as turkey turkey has a much l

economy ministry the finance minister the governments can do about that other than try and address other factors that are helping to put downward pressure on the on the repeats so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. robert plant is india going to be forced to follow suit. well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that it's response to what is a much more significant. currency crisis facing turkey as has has been a adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that has arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out its tuckey's policy response india's not quite in the same situation as turkey turkey has a much

economy ministry the finance ministry the governments can do about that other than try and address other factors that are helping to put downward pressure on the on the repeats so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. that plan is india going to be forced to follow suit. well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that its response to what is a much more significant. currency crisis facing turkey as has has been a adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that has arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out its tuckey's probably see response as india's not quite in the same situation as turkey turkey has a

the pier 70. it's about financing the new neighborhood at pier 70. i'll try and keep the presentation brief, so that i can answer any questions. just by way of a bit of an update, there was a ground-breaking at pier 70 on may tenth. some of you attended that ground-breaking. we've been working diligently with representatives of forest city, the developer for the site. our sister city agencies, to process the infrastructure, including the new streets and parks that will be needed to support the new neighborhood. demolition activities are already under way and four cities started designing the first two buildings for the site. this is a very fast project for a master planned project. we need to move to these financing approvals so we can pay for the public infrastructure and public benefits in the project. so, as a reminder, the pier 70 special use district is a 35-acre special use district next to the dog patch neighborhood. it includes an approval for 1600 to 3,000 housing units, 30% of which will be affordable 1 million to 1.75 million square feet o

the us has done a very important things by halting the financing for the refugee agency known as an ra it's finally beginning to resolve the problem the funds must be taken and used to genuinely help rehabilitate the refugees the true number of which is much smaller than the number reported. this is a welcome change. here's what's coming up for you on this news hour a rare show of discontent as thousands rally against the russian president vladimir putin's plan to change the pension age also. and i'm sorry for sit in one of the last places you might expect to find high level showjumping right here in the gaza strip. and in sport action from the u.s. open a moment of genius from roger federer. the

over the past few weeks, many americans have felt anxiety about the finances in the future. i understand their worry and the frustration. we have seen triple digit swings in the stock market. major financial institutions have teetered on the edge of collapse and some have failed. as uncertainty has grown, many banks have restricted lending. credit markets have frozen and families and businesses have found it harder to borrow money. we are in the midst of a serious financial crisis. the federal government is responding with decisive action. we boosted confidence and money market mutual funds and acted to prevent major investors from intentionally driving down stocks for their own personal gain. most important, my administration is working with congress to address the root cause behind much of the instability in our markets. financial assets were related to home mortgages and have lost value during the housing decline. the banks holding these assets have restricted credit. as a result, our entire economy is in danger. so i propose that the federal government reduce the risk po

>> it is a question that a lot of people asking the finance world when i was nominated. we had always known in all of my years working in development that the world bank was the most important institution for people who wanted to help poor countries develop. i came to the interview with president obama and he was asking me exactly the same question. he said to me why should i nominate you and not a macro economist? this is when i made the pitch, the most important one i've made in my life. i said have you read your mother's phd dissertation? he said yes i have. i said i'm in anthropologist like her. i said i have not been in the finance world but i have been on the ground doing development work for most of my adult life. i will be able to tell you how it is working on the ground. he looked at me and said i get that. david: was he surprised that you read his mother's phd thesis? dr. kim: he was. we were together in a more informal setting. he said that was one of the best ploys to get a job i have ever seen. david: did you feel intimidated when you didn't have this kind of

the french finance minister this hour says the state is not planning to sell its stake in air france told the ft president macron was planning to sell the shares. anna: thank you. coming up, more of our interview with the french president. we will discuss the prospects for global trade. this is bloomberg. ♪ anna: welcome back to the european open. bloomberg. we have the start of the equity trading day in europe. minister hasprime agreed to open trade talks between the u.s. and japan. solid growth is forecasted for world trade in spite of the u.s.-china tariffs. a positive outlook is indicated. ceo of -- with us is our guest. tell us more about this barometer. tim: we have been working on this trade barometer. we've launched it at the beginning of this year. we check sources internally or with market data. we have a big data base we use with intelligence to predict how freight and ocean freight volumes will develop based on several countries. powerfule this is a instrument we can use to develop internally and give to our customers. world trade is expected to continue growing. reading

. >> the finance minister sparks a bond rally as the defense minister tells cnbc the coalition will not break >> what is more important is the -- is that the support from the people 60%, there is no reason to destroy a government >> reporter: and it's a political deadlock here in sweden as support for the nationalist swedish democrats raises the potential of a hung parliament. >> boris slams theresa may about brexit it leads to potential black mail from europe. >>> the finance minister says bond yields will fall as the government gradually starts its policies they must stop public debt they have made public promises take a look at the italian bonds this morning you can see a bit of price movement on the backs of that but nothing too important. they have said the country will meet and he acknowledged there are key foreign metrics. >> translator: our budget would be based on growth every morning before calling my kids i check the spread so we want to meet e.u. rules on deficit. i was talking to some correspondents earlier about the political statements and spread and i know there were oth

you worked for the finance minister during the crisis at health -- you were the finance minister duringhe crisis itself. where are we? >> we were under threat of the collapse of latvia and iceland last time. this time it is more our own banking system. our own house crisis. that makes us vulnerable. we all know the debt crisis takes a long time to deal with. the swedish economy is more vulnerable this time than it was in 2008. >> what about the rest of europe? >> the eurocrisis, italy will go into the -- of greece. i do not think we can write that off. europe is still honorable. there are uncertainties in the global economy. we have to be cautious. >> you say we cannot write up a crisis in italy. what are you going to be watching going forward when it comes to italy? >> the political side of things. they havety clear made a lot of gains in terms of popularity given the stance that have taken. if they back down if they are not taking -- i think there will be disappointment. we might see instability in italy. >> keep an eye on italy according to anders borg, the former swedish finance min

china arranged the financing and built a railroad network deep into the heart of the continent. it cuts the journey to kenya's capital to five hours down from eight for cargo transported by truck. >> the initiative is i believe a good initiative for the region. -- railway link mombasa to nairobi, it's creating immense opportunities. the railway link, i have reservations about the price that was paid. however, the fact that we have a rail link now is creating immense opportunities. resulting in reductions in supply times and so on. >> there is no one else who can compete with the chinese. >> when we look at it with an african or kenyan perspective, investors are welcome. whether it's american, chinese or european, because they need to make us more competitive. >> the market is there. to get connectivity, our products out there is a problem. we hope markets can be opened up. not only to china but other countries. that's what we are hoping for. rishaad: better transport links are vital. if regional expansion is not to hit the buffers. the imf forecasts growth of 6.2% in 2019. momba

we have to make sure the finance sector is delivering the resources that we need within our economy.nomy is producing wealth but a lot of that is still going into lending into property speculation and not into the investment in manufacturing, research and development and new technology that we need if we are to face up to the fourth industrial revolution. 0ne face up to the fourth industrial revolution. one of the issues we are putting forward as we are campaigning for the financial transaction tax, really closing down the loopholes on stamp duty that will deliver money into the real economy but also setting up a strategic investment board which comes together the bank of england, the treasury, business leaders and trade union leaders to plan the way in which the finance sector can then provide the stable investment we needin provide the stable investment we need in our economy, so we can grow our economy and so that prosperity can be shared by everybody. you are talking about potentially higher taxes. there are many in the city who fear that brexit might make it much tougherfor them

the u.s. and europe. refinancing financing of the u.s.ough banks with only 25% of the financing and through markets with 75%. it was exactly the reverse in europe. markets, 75% for the financing for the banks. that is the first explanation. the recapitalization of banks in europe was much more costly in than of percentage of gdp was the case in the united states of america. there are many reasons for those differences. one important reason is the existence of freddie mac and fannie mae. onch we mentioned previously your screen. that explains why a really large part of the financing of the u.s. economy comes out of semi-public institutions and not through the banks. structuraleing said, reforms of importance have been decided, including the single supervision authority with the ultimate a decision taken by the central bank. ways thisopean advantage with the structural difference with the u.s. i am very much on the side of the optimism that was express by the previous speaker. onnie: the concern at the time, when lehman collapse, market par

the problem is about fiscal imbalance and the government finances. ls a serious effort to increase seven or -- increase revenue and , the problemnses will not go away. the wednesday, we saw passing of the book to imf saying they should fund quicker. the markets looked at it and says it is a sign of desperation. nejra: what can he say today? srinivasan: he has to set out a number of plans to reduce government expenses. this point, they have to raise taxes. for have to set a roadmap fiscal prudence. then, that will give credibility to central-bank action. all the benefits of these high rates will kick in. nejra: the indonesian rupiah continues to decline today. i know there's a current account deficit that is that because of a fiscal house? why is that not responding to actions that have been taken? srinivasan: it is different. the rising rates and the current account deficit and so on. as he said, there are several layers in markets. the bottom being turkey and argentina. russia, south africa, and the commodity exporting countries. they are less vulner

him, i have not been in the financed world but been doing on the ground doing development world most of my adult life. i will be able to tell you how it is working on the ground. he said ok, i get that. he later, and we were together in a more informal setting and he said, jim that was one of the best employees -- ploys to get a job i have ever seen. david: did you feel intimidated? about it.humbled people in the audience, many of whom taught me a lot. i felt like, learning finance and macroeconomics is going to but huge challenge for me for the previous presidents coming in, learning development must of been an even bigger challenge them. i felt i knew what working in developing countries was like and i worked hard to learn the other things i needed to learn when i got here. ,hen you show up at a meeting do your eyes -- do their eyes open wider? >> in washington, they will say do we -- do you have a branch in alexandria? do you have an atm? >> other places you are well known. other places not at all. people give you more than they used to as president of the world bank or does that

the finance minister will meet christine lagarde this week. ict fiscal discipline ideas for argentina from the imf and if so how will that go down given the history between argentina and the imf?|j think between argentina and the imf?” think so. in the end argentina is facing a credibility problem. they are not convincing the markets about their ability to meet their financing needs or on their debt. the way to go is just implement sharper fiscal adjustments. you make it sound so easy but it's not easy at all. for the president mauricio macri as well, he has an election next year and this is not a vote winner when you're trying to implement tough austerity measures and that kind of thing when you want another term in office. he's definitely facing a very complex environment, his approval ratings are already falling and this is a challenge for his presidency and his own political aspirations. but he has to decide whether he wants a healthy economy or a healthier presidency. briefly, how bad will it get before it gets better? we expect a recessio

at the moment of the burst of the crisis, the financing of the u.s. of major banks with only 25% the financing. the market is 75%. it was exactly the reverse in europe. 25 for the markets and 75 for the banks. that is the first explanation because the recapitalization of banks in europe was much more costly in terms of percentage of gdp. that it the case in the united states of america. is theortant reason existence of fannie mae and freddie mac. that explains why a very large part of the financing of the out of publicomes institution and not through the banks. that being said, of course the europeans have a lot of hard work to do. structural reforms are of first importance. they have been decided including the single supervision operating with the ultimate decision taken by the banks. disadvantage i would say in terms of structural difference with the u.s., they took a number of decisions and i am on the side of the optimism that was expressed by the previous speaker. >> they did not realize the interconnectedness of the banking system. what do we kn

we did go back and talk to the office of public finance about prior approvals by this board in terms of using private placement rather than a public offering for bonds, and miss widener said some of the examples we put in our report. because of that, we do recommend approval of the legislation. >> supervisor cohen: thank you. all right. she's made a recommendation to move this forward. is there any discussion? on your part? public comment. item 8. any member of the public? no public comment. i'll make a motion to approve and send to full board with a positive recommendation. take that without objection. thank you. moving on. item 9 and 10 together, please. >> 9, resolution approving as amended the issues and sales of residential mortgage bonds by the city, not to exceed 76 million for the purpose of providing financing for the construction of a 143 unit multi-family rental housing project located at 1990 folsom street. 10, intent of the city to reimburse certain expenditures and authorizing the mayor's office of housing and committee development to submit application and related docum

infrastructure is risky in the early stages, which is what it is important to have the right kind of financeplace, at the right time. that is what multilateral development banks try to do, to get involved in the early stages when it is risky and manage the risk. >> the policy is clear, the bank is inclusive. we do not intentionally try to grasp of the people into the bank, because it is ultimately the decision-making of the sovereign governments, and the door is open. we are inclusive. if they are interested in joining and working with other members, they are most welcome, but each and every seven government has its own ideas. >> very many government to government deals will be a concern, but again, the initiative is evolving. in its early stages, there are many government to government him many government to government deals and increasingly, these deals are profit driven. not just local, firms or state firms, but private firms we are seeing chinese firms beginning to move into the market. >> what role should and will commercial banks play, because they are risk-averse as well, but there ar

fully into the finance minister there talking to our very own manuel acosta claridge ryan is c.e.o. michael o'leary says his company will roll over in response to strikes by pilots and cabin crew it made the comments in response to a walkout by german pilots and cabin crew stuff which resulted in the cancellation of one hundred fifty flights in and out of germany today it's the latest in a string of strikes staged by ryanair workers who've been called by to pay and working conditions. and finally there's a shortage of potatoes in germany and prices set to rise this year's harvest came in below expectations. record temperatures and no rainfall most badly several crops failed at thousands of bombs the german farmers association aust one billion euros in aid from the government recently. pledged less than half of that amount said it will give three hundred forty million euros that means farmers may have to pass on some of their losses to. them. and you may think they're potatoes so what i'll tell you the germans. had great i was doing business with him. home away from home for soon i'm

the work of the terrorism and illicit finance subcommittee on financial services has uncovered the activities of terrorists and criminal organizations acquired through financing and illicit operations cannot continue if the revenue streams that fund those operations are shut off. the measure before the house today would provide greater clarity into how the global financial system can cut off financial schemes that enable access to nuclear, chemical and biological weapons. the improving strategies to counter weapons proliferation act would study how our financial institutions and collecting agencies and law enforcement share information regarding known weapons financing activities to better identify weapons financing schemes. to effectively prevent the threat of dangerous weapons into the hands of bad actors, we must close the gaps that allow those bad actors to take advantage. the ever increasing number of threats poised by foreign adversaries make it all the important to close those gaps now. by helping financial institutions and law enforcement better identify the signs of illicit financing

italy's populist coalition release their first budget amid growing fears about the country's finances. also coming up: the imf ramps up the size of argentina's bailout programme to stave off a worsening economic crisis. a warm welcome to the programme, briefing you on all you need to know in global news, business and sport. also in the programme: desperate measures on the high street, the flagging department store debenhams opens what it's calling a concept store in watford. it's hoping in—store experiences will lure shoppers back to the high street. so what's the best experience you've had in a shop? do you shop mostly online? tell us what you're up to, just use #bbcthebriefing. president trump has defended thejudge he's nominated to join the highest court in the united states after a third claim of sexual misconduct against brett kavanaugh. but speaking at a news conference, mr trump also said he could withdraw mr kavanaugh‘s nomination to the supreme court, if some of the accusations prove to be true. mr kavanaugh denies wrongdoing. our washington correspondent, chris buckler, sent

how prepared is the finance ministry for the worst-case scenario? put this question to the deputy finance minister, on a scale of zero to 10 with 10 being very prepared how would you rate your preparedness? he gave me a very clear 10. what we are looking ahead is the worst case sanctions, sanctions on new sovereign debt and sanctions that affect state banks. in terms of the new sovereign debt, the fears have already pushed ruble bond yields hires and sent the ruble itself weaker. we have seen foreign holdings decrease as well. extremek if in scenario, you could see the central bank intervening and he said this would be a possibility. >> if you do get that worst-case scenario of sanctions on new sovereign debt, that affect the state bank, what will you do to protect the economy? and the a lot of things key things is what we have done on the policy side. we have a surplus on the fiscal side and on the current account side and all those factors allow us to have a stable economy in case of external policy. whether it is sanctions or an em areis, the cha

on tuesday, the finance minister had his first meeting with the imf and these negotiations may provepic the imf‘s managing is showing willingness to help argentina out, but it all depends on a vote id board. on tuesday, the president received a phone call from donald trump, the american president, saying that he is doing and excellent job handling president, saying that he is doing and excellentjob handling this crisis. but the markets do not seem to agree as the peso lost more value on tuesday. rising trade tensions could weaken the operating environment for banks in this region. report says that about a quarter of institutions believe that trade wars were the biggest medium—term threat for the outlook 01’ medium—term threat for the outlook or asian banks because it will reduce demand for trade finance of the 33% were most concerned about bubbles bursting, while 31% cited monetary policy tightening, higher borrowing costs as a threat to profitability. earlier, ispoke borrowing costs as a threat to profitability. earlier, i spoke with jonathan corniche, managing director, about his v

rishaad: haslinda with the indonesian finance minister. let's have a look at what is going on within the markets. we had a mixed kind of open. let's see how they are behaving themselves. streak, the losing loop -- longest losing streak -- david: in 16 years. june 2002. before we check markets in indonesia --before we check marn >> the shanghai composite is now below the closing price -- it's 2016 low. ofis back to the levels 2014. broner markets look like of 2014. broner markets look like this -- have a look at the asia-pacific great we have the of 2014. broner markets look like this -- have a look at the asia-pacific great we have the dollar, 10 year yield and low prices. the stronger dollar in the philippines, country like india will be under pressure. approaching 3% on a 10 year yield. index --berg dollar rishaad: let's have a look at what is coming up later in the program. $11ging economies could add economy to the global by 2030. next, an exclusive interview with cmib chairman on the prospects of malaysia, politically and economically.

like there is a disconnect between the finance minister and the populist leaders?ter hasnance had a very steady line, he wants to live within e.u. rules. the leaders of the populist parties have gone around with a lot of luster -- bluster. whether the sides will come together within the next three weeks remains to be seen. anna: we have been fascinated by this line from salvini, talking about his economic reforms will answer the laws of the spread. using that language, talking about spreads in bull markets is not something you he or politicians do often. -- you hear politicians do often. kevin: this has been dominating the news media here, what will happen with the italian debt and the markets. vini uses a lot of campaign bluster, but he will find the markets can be pretty cruel and unforgiving places. much, arek you very western europe economy editor -- our western europe economy editor joining us. we have that chart with the spread of italy versus germany, the 10-year spread yield. the finance minister is saying the spread is too wide. poised to see this contract

a good thing that the longa international finance the international monetary fund is helping argentina wolf well it's not really helping argentina it's helping the bondholders you know the century bond said that you mention it first there's a lot of the fact that the i.m.f. is stepping in to help support that foreign currency debt that's you know that i'm if it's the lender of last resort for countries that bar in dollars or in euro's and and can't and can't print away the debts so yeah the i.m.f. is the guarantor of sovereign bonds to bondholders you know that argentina is going to have to make some sacrifices argentina and people you know they're going to pay for this obviously you know in the end the. purpose is to make bondholders whole so yeah that i met responded on you know the government of argentina was asking that i'm f. to for this bailout and so the i.m.f. is bonded but it's really a bondholder bailout it's not really about a lot of argentina itself but of those bondholders and many of them are in other countries some of the margin times themselves that buy these dollar den

biggest seismic shocks in economic history the lehman brothers bankruptcy it completely up ended the finance sector and caused political reverberations around the globe now one decade on could such a disaster strike again from greed to grief a main topic here on made and been nice to have you along the original lehman brothers moved from germany to the united states in the eight hundred forty s. setting up a dry goods store but by the following decade they devolved into a commodities trading house at the point it collapsed it was the fourth largest investment bank in the us financial institutions a complex web of operations and a lot of people don't really understand the products they sell in fact they often lie on that products like the week real estate loans they packaged into securities and sold around the world as housing prices began to fall and mortgages of overindebted homeowners became worthless a chain reaction was set in motion. the u.s. federal reserve system the fed in new york high ranking representatives from the banking industry are tasked with keeping lehman brothers afloat t

they want to see the central bank and finance ministry sticking to the plans.ncement where the central bank chief was changed. they changed their inflation targets only for inflation to soar. the world's largest borrowing cost at 60% through a surprise decision last week. ofre is a lot of changing course and people want to see a more steady hand. francine: thank you so much. he is the bureau chief. ec and back with gilles mo william jackson. look at when you argentina, how much does a weaker peso help? this is undervalued. william: by our measures, it looks bare value. value.o -- it looks fair prior to the escalation, it looked overvalued. this is a country of high inflation rates. the nominal exchange rate is constantly becoming more overvalued and it weakens. francine: what does it mean for the current account balance and for the financing needs? improvingn terms of the current account balance, , coming by narrow weaker demand and weaker imports. exports are agricultural and that is priced in dollars. it is going to come by a painful crunch. francine: when wi

i said i haven't been in the finance world, i have been doing development work for most of my adult lifewill be able to tell you how it is working on the ground. he said, i get that. david: was he surprised you read his mother's phd thesis? dr. kim: he was. we were together in an informal setting, he said that was one of the best ploys to get a job i have seen. [laughter] david: did you feel intimidated without those backgrounds, or not? dr. kim: i felt humbled. people here in the audience taught me a lot about how the world bank works. i felt like, learning finance and learning macroeconomics is going to be a huge challenge for me, but for the previous presidents, learning development must have been a bigger challenge for them. i felt i knew what working in developing countries was like. i worked hard to learn the other things i needed to learn when i got here. david: when you show up and a meeting and tell people you are the president of the world bank, their eyes open wider or their jaws drop? it is a pretty good title. dr. kim: it depends on where you are. in washington, they will sa

they will stick together and likely keep the finance minister to avoid alarming the markets too much. break down?oes it this is a not situation, where minister onprime one side of this table and you have the five star and the league on the other side of the table. those are the two parties that ultimately won the election. this is a very strange situation. >> right. well, you have this political part of the coalition. you have the two leaders of the parties that want to keep promises, they want italians to understand that they will do what they said, at least in part. it is difficult for them to keep all of their promises. they have promised tax breaks, citizens income, and expensive pension reform with lower pension aid. it is unlikely they can do well at this. but they want to have something they can point to. the finance minister says we need to be reasonable and to letand that we need the markets do what they do, because of the market gets upset, italy will be spending more money anyway and there will not be money for reform. you have the reasonable part and then the political par