i don't pretend the imf can push all the clouds.t will require collective effort and that's my final point. the first economic club that we see is that risk of low growth for a long time. now, how is that characterized? will if you expect growth to be be -- you are going to refrain from investing in new capital expenditure. you are going to refrain from consuming possibly in this dynamic seriously impede the recovery. so it's not sort of a vicious circle into which the economy could find itself and as i said this is the circumstances where you have a combination of low inflation and high unemployment. that is currently the case within a euro area and in some countries more than others. the second cloud is still economic although more monetary. the second cloud we see on the horizon is that of unsynchronized -- who has studied latin and greek hear? everybody. it means they are not going to be all synchronized together and it might apply to the same monetary policy with different moments of the cycle. the monetary policy normalization

let's start with the imf. s pumped up asset prices so much they may once again threaten the financial system. the imf points to specific vulnerabilities. i

and for the first time, the imf is saying increasing fiscal spending is perfectly acceptable. >> the rld bank and imf are also pressing governments particularly germany to spend more on infrastructure. they say this will boost growth and create jobs. and germany's economy has shown risk of flatlining, but the finance minister dismissed the idea of writing checks for europe. meanwhile, his french counterpart is warning that the imf should be listened to. >> if the imf is saying "be careful, the eurozone risks entering recession" and they also warn about the important risk of deflation, i think we should listen. >> nudging governments to loosen their purse strings is a stark shift from the imf steps of tightening spending. it also signals that the steps of the last six years have been in equity. -- have been inadequate. >> for the days top business news, brought onto our website. that is, france24.com. it's time to take a look at what is grabbing headlines around the world. for that, i'm joined by florence. we will start, of course with yesterday's nobel prize in literature. >> it was a

first some breaking news from the imf. h has details on that. >> international monetary fund lowering its outlook for world economic growth. it now predicts that the world economy will grow 3.3% this year. that is down from 3.4% in july. sharply lower than what had been expected in april. also lowering its growth forecast for 2015. the main reason, according to the international monetary fund, geopolitical risks. they cite risks coming out of the middle east and coming out of the tensions between russia and ukraine. on the up side, the imf revised the u.s. outlook higher. growth for the united states set to be 3.5% for the second half of 2014. 3.8% in 2015, but the u.s. is certainly a bright spot in what is otherwise a down beat picture. europe, japan and the emerging markets all taken lower. of the emerging markets, i thought it was interesting that brazil was actually cut in terms of the growth forecast the most. some quotes to highlight from the international monetary report, mediocre is the word. we heard this from laga

don't listen to the imf and by equities. is not earnings related and by that debt. and thee market ratio consumer pattern to see if there is a trend before deciding. calling of a cell off -- sell off, but we are 320% off. -- 3.2% off. >> there are some real as alances of opinion greenspan said, a good start for it helps everyone. >> isn't it ironic that president obama with a 41% approval rating gets no credit? is it the lack of direction that the red line has gone pink on foreign policy. ? >> it little bit. a lot of people still feel uneasy. the fact that the market is ,wice what it was six years ago they don't feel the love. >> it does not touch main street. >> it is the first night of nhl hockey. >> hay. go blue shirts. flyers-bruins. >> is that the game tonight? >> come on, you are a boston man. >> i like the canadians. >> globalization. , thank you.aass we continue on the bloomberg television. ♪ >> i am it -- i am matt miller come in for betty liu on this wednesday. ebay and hp split we saw breakups over the last week. t

how challenging it -- is it for the imf and do you think the legitimacy is at risk and the imf would have to go beyond the 2010 reforms that is currently in tax? thank you very much. >> the reform is an absolute must. it has to be implemented and everybody knows that it is currently stuck before the u.s. congress. we very much hope that the different branches of the u.s. authorities and members of the legislative members themselves will understand the relevance of having an i that is representative of the global economy and includes the people that should sit at the table. now, this has not happened. it was during 2012. it's overdue in 2014 and i strongly hope that under president obama's leadership and with the right understanding of the parties the role of the eye at math words that. who was first on the job concerning ukraine? the i. who managed to disperse very quickly and put cash in the bank's of guinea, sierra leone and liberia? not to say that others are not doing the job but we are capable of dealing with crazy situation of that nature like no institution. now, i'm not finish

being watched by the imf. managing director christine lagarde warned that the recovery has been subpar. she pointed to low growth and high unemployment as systemic problems. earlier, i sat down with her. >> you mentioned in yours each this morning the trouble spots around the world, ukraine and the middle east. we see another one looming in hong kong where there have been protests. how concerned are you about the knockoff affects on the global economy? >> i am concerned about all areas of uncertainty, which is why he mentioned ukraine, the middle east, and what is happening in hong kong is obviously a cause for concern and could create uncertainties that would have ripple effects. clearly, we think it will be resolved through peaceful dialogue and to a satisfactory conclusion, but we are watching. we have not changed any growth forecasts for hong kong. >> you did mention in the stage that you have revised your opinion on the global economy and that things have gotten worse. were you wrong six months ago, or wh

you will sit down with christine lagarde from the imf? certainly, the discussion surrounds what is happening in washington with the secret service. you mentioned you ran into a couple of secret service guards? to observenteresting one of their first store tease. i did not know if the daughters but it wasr pizza amazing to see our secret service working in real time. they had about 11 black cars in the assistance of the washington police. it took two hours or so to get restaurantto joe's on 15th street. i will sit down with the managing director and know better time than one week before the imf meeting. move,he markets on the there are many ways to go with christine lagarde. down andading the way global economic slowdown and disinflation, markets on the move this morning, is the managing director >> we want to bring in our guest house for the hour, ian shepardson. he is joining us in new york this morning and rich lesser. this ecb meeting that will happen today, it's a big one because mariano draghi had promised to step up his asset buying.

the imf. david was a bit concerned, and i'm sure we have colleagues that were concerned. but it is an indication that we are capable of mobilizing , and others are going to have to put grants on the table and significant numbers, but there are also resources where we are capable of revisiting traditional standards . we have done the same this year debtrning sovereign restructuring. this is a matter we have studied, where we have come up with proposals, revisions of certain clauses of sovereign bonds issuance terms, and we will continue to work on this issues. in the same vein, we are also sb following up in helping with profound changes and modified regulations applicable to the financial sector. there are areas where we would -- where we were not expected, and it is not bad to look at the fiscal side of climate change and what can be done about it, and we have made proposals. subsidies inmoving a socially responsible way. we have made proposals concerning price setting and including externalit

remember, the imf world bank was established after world war ii to rebuild europe. >> uh-huh. >> that phase is long, we're past that now. the countries we helped to develop in the past half century are now included in the new bricks nations. >> russia, russia doesn't give foreign aid. the chinese are all over africa. >> right. >> they're bleeding the countries of their resources. the chinese are the big players. >> china's not doing aid, pat. >> what is south africa doing as a country and an economy, doing in any major collection? >> providing -- . >> other than providing the s at the end of brick. >> providing window dressing for what china is doing. it's china and a lot of countries that cover it and make it look like a benign international effort, when it's really -- . >> china's investing. [ overlapping speakers ] >> they're reaping billions out of africa. like eleanor said, they're not creating that many local jobs. >> yeah. >> and local development development and workers. >> i have to ask mort the key question here. that is does this pose any immediate challenge to use as u.s.

the head of the imf spoke to reporters on the sidelines of the meetings. she said growth in the global economy is slower than expected due to sluggishness in the euro zone and japan. japan's slow growth after the tax hike and stagnation across the euro zone are fueling uncertainties about the global economy. >> we have, also now, alerted the po tin shl risk of recession in the euro zone. >> she urged the euro zone and japan to shore up with monetary easing. >> in the face of what we called the risk of new mediocre where growth is low and uneven. we certainly believe there has to be a new momentum. >> she called an policymakers to implement policies that focus on growth and create jobs through investment and infrastructure. investors on wall street are worried and pulled their money out of stocks. the dow jones shed 300 points, ended the day down nearly 2% at 16,659. for the details, let's go to ramin. good morning. what can you tell us? >> good morning to you. yes, indeed. the sell off we saw in the u.s. is most definitely spreading here to tokyo. let's ha

the imf has called the equities frothy.s go to mark martin who's .een looking at the performance >> thanks. frothy is the word. a monetary policy report, said valuations of social media and biotech stocks appear to be stretched and what's take a look at the index in the u.s. of native and small-cap stocks. signsnalysts say it shows of frothing this and it is very clear where the trend is. nasdaqpward and for the biotech index. look at where i circle on the chart. that is july and that is when the fed made the comment. since then, the fed did not the falling by 11%. it puts in a correction. 10% or lower. the nasdaq, which the fed 6% since, it is up by july and it is only below the all-time record high. ande have the companies indices come from? 2009, it has risen by 250%. the biotech index is up. on valuation grounds. what is it looking like? at 250 times the current earnings and above the five-year average. it is trading at 50 times the estimated earnings and above the five-year average of 47.8. abovealuation metrics are th

i think they want to say, we're not the west and we are the alternative and they are not. >> the imf dominate. >> eleanor is right. china is the big dog. >> they dominate europe and they dominate the united states. >> and japan. >> justifiably and predictably have come to their senses and decided they are going to do this. is that fair or unfair? >> they want to be independent. they want to make their own decisions. they want to focus their infrastructure in their own countries and they want to have their own approval methods. they don't want to go through the rules and regulations of the world bank and they will have control of enough money and they will focus on their own development and they will benefit from it. >> i think they do have something in common, money, and the profit motive here. this is a new stage for the world economy, i think, because remember the imf world bank was established after world war ii to rebuild europe. that phase is long, we're long past that now. these countries that we helped to develop in the last half century are included in the new bricks nations a

the imf has cut its global economic were cast for 2015. recast calls for 3.8% growth down from 4% flat. plus they warn of a market correction because we have seen financial markets reaching for frothyels -- brought th levels. earnings fell intense unless quarter. they are being squeezed by apple by high-end phones and chinese rivals with cheaper devices. walmart is cutting of care benefits or both of its workers in the u.s.. work less than 30 hours will not be offered health insurance, claiming higher cost. >> carlos slim talk with in the loop inker betty liu about his new global campaign to hire workers with disabilities. the mexican billionaire also document giving into mexico's government which wants him to do invest billions of dollars in telecom assets. little bitto talk a of business. you have been the leader in the telecom market in mexico. -- mexican president >> 28 countries. important. we have an operation, and now we involved in europe. aboutwere talking splitting up companies in the u.s., hp and ebay splitting up. and i know in

i don't pretend the imf can push all the clouds. it will require collective effort and that's my final point. the first economic club that we see is that risk of low growth for a long time. now, how is that characterized? will if you expect growth to b be -- you are going to refrain from investing in new capital expenditure. you are going to refrain from consuming possibly in this dynamic seriously impede the recovery. so it's not sort of a vicious circle into which the economy could find itself and as i said this is the circumstances where you have a combination of low inflation and high unemployment. that is currently the case within a euro area and in some countries more than others. the second cloud is still economic although more monetary. the second cloud we see on the horizon is that of unsynchronized -- who has studied latin and greek hear? everybody. it means they are not going to be all synchronized together and it might apply to the same monetary policy with different moments of the cycle. the monetary policy normalizatio

the imf working in the independent committee has done very important work and we're beginning to seehese provisions show up. the clarity of the contract in which the financial markets rely should be beyond question. and we are as committed to an up process. >> recently you made changes to prevent aversions there was talking about the ireland and apple tax ruling. what can you do to make sure companies are paying some tax somewhere and they're fair share not just a nominal amount there is financed by taxes? >> guest: the international community has been facing a russian we have been focusing on the issue in the united states. from a u.s. perspective what we do the most advanced would be tax reform if we lower the statutory rate right now we have a high a statutory rate in the developed economies. the average rate is average because of all the loopholes and deductions and credits that are not reflective of current policy priorities and they monodic good idea in the first place. if we could do business tax reform really take away the pressures that drive companies away. i never said the

i am requesting more about yourself and less about the imf. as an individual you have done so many courageous and often as a lot when you're the first to do them. so when you're young, like many of us here, what gives you confidence that interest rates reach further, take risks, and except new challenges. then smell someone who has a great deal of responsibility and also experience. what continues to give you that conference and in the strength. >> it would be unkind to my parents of i did not say is of good health. you need that. you can work on. i see some of you sometimes turning around and exercising. think it is also the basis on which you can develop that love. >> em -- papyrus and the finished a book by one of your countrymen. >> he finishes? >> yes,. [laughter] >> it only took about two months. >> not a dismissive comment on my part. south could be wrong. great, great information. >> my question is about a central thesis that in the long run, the returns on capital will always be greater than economic growth to what extent would that be

the imf, like you, is calling for full blown qe. that the covered bonds and the abs isn't enough. whether that figure is 400 billion euros or 200 billion euros. do you think this will change the outlook for the ecb or will staunch opposition from germany preclude that ever from happening? >> well, i think there are a few points to address there. first of all, whether it's 200 billion or 400 billion in terms of asset purchases, that's something not going to be enough. remember, we have a lot of ltro payments coming through in january and february over the next year. the risk is over the next six months, the ecb balance sheet shrinks. but one of your reports in the interview before mine suggested, you can do quantitative easing, you can increase the monetary base. but unless you get the money into the real economy to support demand, even quantitative easing isn't going to work. it needs to be part of a broader package of measures. janet, thank you very much for joining us. cnbc will be hosting a round table tomorrow. we will bring you

and the world economy, for the imf reforms to be ratified. the president considers it a matter of almost importance and has made that -- of upmost importance and has made that clear to congressional leaders and we have got into a point in the conversation with congress where there is a broader conversation of why it is important. the situation in the world today where we see the various tensions, where u.s. leadership is more and more called for, having the u.s. play a leadership role in the imf like we have since the end of world war ii is critically important, and these reforms are designed to bolster that role and to carry it forwardt. / . the alternative is that you weaken the u.s. role, and that will be difficult geopolitically. it has always been a hard vote. that is not something that is new to the last two years. i remember it was a hard vote in 2009.90's and earlier in the challenge is going to be to get into a place where we can work together, to find a way to get it through, and i think it is very important that we make every effort

regarding the new imf numbers i don't know when was the last time the imf was right? for that matter, when was the last time the fed was right with their growth forecast? so i wouldn't put a huge amount of stock in that. i think what it does show is that i have an old saying how badly can you get hurt if you are falling out of a basement window? so even though we are probably higher than we were a few years ago in terms of absolute economic levels, if we lose some of that from here it is not going to be a dramatic thing. can the semi conductor sector pause a little bit? we flatten amplitudes of the cycles. i think it makes it, as eric was saying, i think it does put a premium on active stock picking in these kinds of environments. so whether it is the u.s. or europe we are trying to invest in businesses that have made investments in themselves and therefore have the opportunity to be self-help businesses going forward. >> eric, you get the final word. the volatility that is back after so many years of it not being present can work for the investor, right? because for a

beijing andealthy, the imf agree about china's slowing economy. menu and myanmar, this kfc have the right recipe? let's get you back to the streets in hong kong. those protests with scores of police removing barricades and taking back government property. what is happening? right now, right behind me, these professors are rebuilding, reinforcing one of the barricades on the road right outside the government headquarters. police have been removing barricades this morning. they have removed them from three or four sites already. there are several roads the protesters have blocked off. they ran to the third week of protests and a blocked off several main arteries that go in and out of the financial district. will he stated removing them this morning because -- police started moving them this morning because they said they were not being manned by the protesters. worried they will remove them as well. concerned and are they are trying to reinforce what they have. they've been calling for supporters to come back. to bolster the ranks. one of the pro-de

i don't pretend the imf can push all the clouds. will require a collective effort and that is my final point. the first economic cloud the we see is the risk of low growth for a long time. how does that characterize, if you expect growth to be low and lower and on for print or and you are a consumer particularly if in addition to that you envisage relatively low and even lower inflation you are going to refrain from investing in new capital expenditure, you are going to refrain from consuming possibly. and this dynamic could seriously impede the recovery so that sort of vicious circle into which the economy could find itself and as i said, by the circumstances where you have a combination of low inflation and high unemployment that is currently ease the case within the euro area and in some countries more than in others. the second cloud is still economic though more monetary, the second cloud on the rise in is that of synchronous -- who has studied latin and greek here? everybody. so it means they are not all synchronized together

let's start with the imf. using central bank money has pumped up asset prices so much they may once again threaten the financial system. the imf points to specific vulnerabilities. the increased sensitivity and credit markets could make the exit process more volatile, potentially undermining the ability of financial systems to support recovery. janet yellen has raised similar concerns. regulators need to take steps to curb financial excesses. right now. they were trading slightly higher. they're dipping up and down on either side. plummeted.elds the s&p 500 virtually unchanged. so is the doubt. ow.so is the td -- so is the dow. >> if you days of triple digit declines and more of those in the future. this is what the market is like. the true normal market has volatility that makes people scared. people keep valuations reasonable if they're worried and that's where we are right now. and another named to the wrath of companies who want to split themselves up. talks tois an advanced two companies p one selling secu

and if anything the imf was concerned about the low level of volatilities in various financial markets. and if there's any trend of diversion, extreme low volatilities would as some say may go up. so in the last couple of weeks, suddenly volatilities have slightly been heightened. but the number is still low. and as politics genuinely are concerned, basically the dollar has appreciated, not just against the yen, but against the euro, against economic currencies, frequent currencies, as well as russian and european currencies. >> kuroda also cautioned that the trend could be short lived. >> lower oil prices are good for asia because asia is the largest import in the world. not just japan but korea, china, india, pakistan. even indonesia now is an oil importer. so asia has a whole is a huge oil importer. and the grind on prices would be very beneficial to the entire asian economists, also for china, pakistan, and so on. but having said that, oil prices tend to fluctuate. at this stage, destate the heightened geopolitical risks in the middle east, somehow oil prices continue to climb. may

the imf is warning that the able epidemic will have more human cost.e is likely to be the nation that is hardest hit. here in the u.s., the family of the ebola victory who died analysis questioning the care he -- who died in dallas are questioning the care he got. mark zuckerberg is in india this morning. he is meeting with the prime minister during his visit to the continent. the challenges of introducing indians to the net. >> the biggest barrier is actually that a lot of people who have never experienced the internet just don't know why they would want it. >> india is a huge potential market for facebook. there are 240 million internet , 100 million of which are on facebook. there are over one billion people who do not currently have access to the net. earnings out from pepsi this morning. the soda maker boosting its full-year growth forecast. stillo says the company faces challenges related to market volatility and sluggish consumer demand in the developing world. a shakeup at the gap has rattled investors. assures of the retailer down as much as 9

even the imf said it was ready to forget its usual rules. >> it's good to increase the fiscal deficittry to contain the disease. the imf doesn't say that very often. >> reporter: that seems to come as a surprise to the president of guinea. >> translator: the president of the imf, managing director said that we need help and can increase our deficit, which is quite change from the usual narrative. >> reporter: it's a fundamental point. some say holding the meeting here was bitterly ironic, because both the world bank and the imf bare responsibility for ebola's rapid rise. the imf prevents governments from spending on healthcare infrastructure. the world bank because it concentrates on privatized development are not public health facilities. the world bank studied the $1 billion health initiative. >> there are some parts of the bank that have been investing in private hospitals and clinics that are broadly serving the wealthy in africa and not reaching the poor and we want to see less of that type of investment and more investment in strong public health systems that can reach all peopl

the meetings come after the imf released its latest growth forecast for 2014. the report revised upward the report for the u.s. economy, citing continuing improvement in the labor market. the imf was less impressed with japan and the euro zone and downgraded their growth forecasts. the report pointed to clear differences in the speed of economic recovery among different countries and also growing uncertainty about the global economy. the g20 officials are expected to discuss increasing infrastructure investment in emerging economies. japan's finance minister taro as e! and bank of japan governor kuroda are at the g20 meeting. they're expected to sluggishnes japan's economy is temporary and due to a hike in the consumption tax. the japanese officials are likely to say their economy will continue its moderate recovery. >>> well, the head of the imf spoke to reporters on the sidelines of the meetings. they said growth in the global economy is slower than expected. >> in the face of what we have called the risk of a new mediocre where growth is low and uneven, we ce

the market. we saw that today. when imf member came out, who's surprised europe is slowing down as you mentioned. i can't believe people sold on the news. people are looking for any type of reason to be selling, it adds onto it, and why buy on the flipside? we'll wait until we see strong earnings, if they are good, the buyers should come back in. charles: hillary? . >> waiting for the numbers from the fed. charles: are you going to be surprised by the numbers in the meetings? >> looking to see if there is conflict there. combine it with alcoa. the big institutional buyers, we are all waiting and nervous, and therefore, more sellers than buyers. charles: the good news, the institutional buyers are way behind. hedge funds are underperforming in markets. if anyone is chasing, it better be them. >> it's not just europe, it's germany, this is a stalwart economy. a big economy. that is freaking people out. we saw the european contingent, that was greece, italy, portugal. this is a big deal. charles: all right, lou. . >> why do yo

that's the way the imf is describing the global economy. ahead of its gathering of central bankers, finance ministers and other financial heavyweights in washington this week, the fund took down its forecast for global growth. saying it expects the world to only grow 3.3% this year and 3.8% next year. the reason -- political risk from the middle east and russia, a weaker european economy and risks of a storm brewing and what the imf calls complacent financial markets. >> i don't think that we are at the bubble stage or anything like this, but there are some markets which i think are a bit too optimistic. i think we're going to see some exit from the u.s. i think it has been explained as well as it could by the fed but it's still going to come with some bumps. we're going to get moments where the market is a bit worried. and once in a while we're going to get numbers like these ones which are going to make people think that the future is not quite as brought as they thought. >> reporter: but there is a bright spot, the united states. imt say

the imf called the new mediocre, the u.s. economy would grow more than other industrialized economies next year. how do you see a slow down in the world economy affecting us? >> antonio first of all the imf has never been right about anything ever ever ever. so whatever you say you should assume the opposite is going to happen. yes many countries are slowing down. the russians are slowing down and that means the europeans are slowing down. china has been trying to slow down and cool things off for a while so it's not unusual that some parts of the world are slowing down from what they were a year or two or three ago. in the u.s. we still print money so we're doing better. but unfortunately we are not enough to carry the road when other people are having problems. >> the strength of the economy is helping but is it a double edged sword? it could help our exports and put the brakes on our ability to grow and compete. >> well yes yes yes. but most countries in the world like to have a strong currency. it's better for 300 million

this follows some dismal data out of the imf. but the three point star is shining. a new sales record. since the beginning of the year, s class sales have doubled. and in an exclusive interview, carlos slim calls that warren buffett, saying he should put in his own money. >> it is not a matter of giving. >> tonight we're taking the fight to hackers. and former homeland security secretary shows how he is battling cyberattacks with a new kind of insurance for companies. >> there is brand risk, reputation risk, so you need to look at this not as a technology problem, you need to look at it as is this risk -- business risk. >> they are partnering with a london syndicate to provide security to mitigate cyber risk. in big business, global cyber activity is estimated to create annual losses of $300 billion to one trillion u.s. dollars. i asked him what the future holds in cyber security. ♪ step back for just a moment and assess the current threat for big businesses such as financial institutions. we'll cover jpmorgan and the loss of 76 million households. their information

if you remember, we had the imf report, and that's something is that we see in data like oil demand. oil demand has been growing at the slowest in three years. that tells you something. that tells you that global growth is not going great guns. >> i'm interested in that, so the imf can downgrade global growth. oil prices are very low so that should be beneficial for the u.s. economy. so why is the u.s. included in the market selloff? >> that is a very good question. if you were invested in u.s. equities, particularly if you were invested outside of the u.s., in other words, if you were invested in pounds or euros, you've made a fortune, not just on the movement in the s&p itself but also on the currency as well. clearly, when markets sell off, there's a huge tendency particularly for a retailer that says run for the hills. just to say i'll take my profits on out. that's what you see. if you look at mutual fund flows they are re-entering bonds. frankly, that's the wrong move because if you look at where bonds are today, it's a hemp for safety. >>> europe, though, has been a major conce

hosea is the director of monetary affairs at the imf. terview of the day. good morning. global investors seem to have to theking up belatedly slowdown globally. how much do they have to worry about? what is your sense of what is happening in the global growth story? >> good morning. the global growth story is not as good as we went like. one should not be too pessimistic. we are forecasting that this and's growth will be 3.3% next year, 3.8%. growth is going up. going up by less than we were forecasting a few months ago. the second thing is that it is true that there has been a disconnect between economic prospects, which are not great, and markets, which have become very turbulent. that at one point or another there will be thenciliation between excesses that are taking place theinancial markets and lower growth picture. i do not think this is something that is unexpected. when was it going to happen, now we are going to see it. >> does monetary policy ride to the rescue once again? >> my terror policy is the only game -- policy is the o

of guinea. >> reporter: the president of the imf said we need help and we can increase our deficit, ich is quite a change. >> reporter: it's a fundamental point. some say holding the meeting here was bitterly ironic, because both bare responsibility for ebola's rapid rise. the imf because of its economic orthodoxy prevents governments from spending on health care structure. the -- for example. >> unfortunately there are some parts of the world bank, the finance corporation, which is the private sector lending of the bank, has been investing in private hospitals and clinics that are serving the wealthy in africa, and not reaching the poor. and we want to see more investments in strong public health systems that can reach all people. >> reporter: they say forcing countries to limit spending and privatize health care gives them little chance. >> i certainly hope we were not financing those. >> the ifc was. >> it may be. >> that's a corporation of the world bank, isn't it? this >> yes, but at the world bank we try to reduce poverty. >> reporter: they have called for a $20 billion world h

i just watched what happened in washington in terms of global forecasts from the imf. they talk about a slowdown and recovery that is mediocre. they look at europe and china. the u.s. was reasonably healthy. >> right. the u.s. has been looking really good, -- pretty good, not a roaring boom by any means. there are troubles. europe is scary. china is scary, though that is harder to track. we are not an island. not expect they u.s. to be completely immune to these developments. stille are, six years, very fragile. >> talk about europe first. what is the problem in europe? >> it was originally that there is trouble in the debtor countries and a very strong germany. now the problem is, after years of being worried about the wrong thing, too worried about debt and inflation, now they look around and discover they have turned into japan without the social cohesion. inflation is practically zero. essentially deflationary already. germany is slowing down sharply because it depends upon exports, and who will it export to? and it is just, it is -- they don't have, this gary thing

chad, the imf says european economy will suffer for a few years even as the u.s. economy gets better. so king dollar is still very much in place here, isn't it? >> without a doubt. don't kid yourself. expect that the euro to dollar below 120 in the coming months. look. you have two types of economies. uss growing. roughly a three handle and then europe going into deflationary trend here as well as their economy is growing at a half a percent. fiscal austerity there is a plying some pressure there. with the u.s. here, the markets here look fairly valued. a 5% correction should not be a surprise and over the coming quarters the overall u.s. economy is moving forward. growth within top line revenue base as well as on earnings side will be very good. so expect higher highs and higher lows in the u.s. markets. >> okay, tom. what about you? we talked about some of the challenges in europe at present and we shouldn't overlook the extent to which china slowing is a big part of the drop in commodity prices, deceleration in global growth. what is an investor to do? >> well,

he made the comments at the imf annual meetings in washington. they expect to raise benchmark interest rate sometime next your. cfx was oppressed by canadian pacific drilling sometime in the past week. they rebuffed the overture, not known the canadian pacific will come back with another proposal. a merger of the two were great a real wrote transcontinental reach. railroad transcontinental reach. for the first time, someone has contracted ebola inside u.s. borders. the victim, a health care worker in dallas, was caring for the liberian man who died. a hazardous material crew has begun decontaminating the apartment where the woman lived. authorities say she was way protective here but at some point there was "breach of protocol" that may have led to the infection. the cdc warns there may be more cases. possibleunately, it is in the coming days that we will see additional cases of ebola. this is because the health care workers who cared for this individual may have had a breach of the same nature of the individual who appears now to have pulmonary p

the imf cut its global forecasts. they saw weakness in europe and japan. ch.

and that's exactly the point that they keep saying at the world bank and the imf and the world tourism organization. they keep telling people at the airlines don't cancel routes. they tell countries, don't close borders. they tell people keep traveling, the chances of you catching this are very small. the biggest fear is that somebody who contracts ebola decides their best hope is to get as far away from west africa as possible. get on a plane, go to europe. come to the united states for treatment. in that scenario you do see airlines being ultracautious. you see a slowdown in economies and long term, christine, when the world bank president says africa's facing a catastrophe, you have to take him seariously. >> yes, indeed. you certainly do. richard quest, thank you so much. thank you so much for your expertise on this, richard. >>> all right, if you check your 401(k) every day, you might be feeling a little queasy. a sleepy summer has given way to a volatile fall in the stock market. what is going on and what you should do about it next. and get a new iphone free at verizon. did you