given the imf only recently changed its assessment, the currency may be met with some suspicion by the investors. this may unnerve people. >> i want to get a look at the data. credit not going into the real economy. how worried are people about the >> i think ity will help. a depreciationy of currency takes about six months. it's not going to produce something right away. it's interesting. remember, the u.s. dollar started to rally dramatically from the middle of 2014. china didn't really join in. there wasn't much appreciation, but we saw the dollar rising the most in asia. as far as what this means for other currencies, the three we our korea,int singapore, and taiwan. are likely to move in response. >> the idea was that china was going to move for more andumption led structure effectively by appreciating the currency they were putting money into profits. as a result of which you would make this happen. where does that leave this idea? >> i think that was the idea of the market as well. china's goal of seeing the renminbi because -- become a reserve currency requires stability and co

should that sway the imf is decision-making? mentioned some moves in the treasury market in the dollar as well. this is a picture of the dollar over the last three days. if it's a despite. his comments are coming through. this is where close lately i think september. the bar is low. treasuries falling. the dollar rising. away from the macro picture, list talk about what is coming up on "countdown." we will be talking about all things animated. this may disappoints. they slashed at the forecast. find out what is troubling them after the break. ♪ >> "countdown." -- welcome back to "countdown." societe generale beats estimates. socgen says it will cost costs in 2017 to counter -- cut costs in 2017 to counter investment in technology. baxalta has rejected the advanced by scheier. -- shire. shire close down more than 5% in trading. baxalta closed up. the imf says her work is needed on studying the data in the yuan . the imf says -- major benchmarks. disney in extended trading's missed analyst estimates. it also cut the force gas for c

imf. see the role of imf? madame lagarde, after the depreciation last friday, came up with a strong statement saying, debt sustainability needs to be well-clarified. we all know that greece is going up to 200% of gdp, and that is a very tough figure. imf is not willing to play along with such a figure. we have to find a solution. it is a majority question. but it has to be verified that imf, under certain conditions, is coming on board. francine: how do you see the perfect solution? if the imf stick to its guns, and madame lagarde was very strong, i think they are against debt relief, so how do you square that circle? mr. fuchs: debt relief is not possible because of the eu laws. there is no bailout clause. we cannot just neglect it and forget it. we cannot just do it. it is only possible to talk about maturity and whatever. debt relief, i don't think there is a possibility. even the chancellor last night said no interview, she debt relief. because of european law, i have to say. it is a law question. francine:

interviewlked in an about what the imf will be. ans continued to insist that the imf will be involved, in he's sure that the imf for contributed the program, he said in an interview. "just as we declare this to be indispensable." has is a country that demanded specifics, demented enforceability, demented credibility. but on this issue they are taking a leap of faith. they insist that the imf will rejoin the program in october. all the imf has said is that as long as greece follows through they may rejoin, in there has to be some sort of debt restructuring, debt relief. here is all that germany had in terms of imf participation -- this is a letter from the european stability mechanism to the bundestag, saying that the imf contribution to the financial assistance is at this stage undetermined. mark, take a look at some of the public polling. 57% of germans want the bundestag to vote against this. they have done some surveys. then you get to this crucial question of whether or not they believe greece will follow through with commitment

disruptions.y we have a quote from the imf's mission chief for china. he called last week moves by the pboc, important steps. we hope this new system, the fixing mechanism, will allow exchange rate to be a little bit more flexible and move around according to the market pressures. they want more movement and clarity on the convertibility. >> there must've been some reaction in the offshore yuan. we have overnight the offshore, it traded down. says traders who sold offshore you one likely overreacted by misinterpreting the board's decision as a sign the imf does not think the yuan qualifies for the sbr. patel says our base case remains that this will be cleared, freely usable hurdle by the end of this year and will eventually be included in the fdr basket. even that we are incurring some fuel that has been lost, it's much smaller. the net benefit is better. if you look at the result we see which is a major improvement over the last three years, you can see the impact, at the same time managing that risk. glencore slumped to a record low after the ceo admi

we have not heard yet about the imf. is the imf going to provide funds? that was a wish of europe and especially angela merkel. second question, what about the consolation, the debt consolation, the debt rescheduling, the debt restructuring. you know that this was the main spine a few weeks ago, and now there is no discussion about that. what is going to happen is -- what is going to happen? is the situation sustainable or not? these are the questions ahead. the way the program works is that you have some funds that are going to be disbursed very soon, but they are trenches. the trenches are disbursed if some measures, some new measures are taken. just the start of a long path, and i guess there will be more questions, including on the political front. molly: we saw with this vote sot prime minister tsipras opposition within his own party members. you say this is one step on a pass. greece has been on this path of austerity for years now. this would be the third international bailout, worth 85 billion euros. need to seeose, we more tax hikes and spending c

and probably the imf is stretching. stine lagarde is stretching quite a bit already in terms of the rules of the imf in order for the imf to take part in this bailout. we are facing again hard times. >> yeah, the crisis continues. thanks so much for coming in. thank you. >>> the e.u. is pressuring russia to release an estonian policeman who has been sentenced to 15 years hard labor for spying. estonia claims he was abducted by russian forces and his failing is illegal. >> reporter: this is the man talking with his lawyer in a courtroom in russia. now he is facing 15 years in prison after being convicted of spying. his lawyer says he will serve his sentence in a russian hard labor camp and be fined $1,500. >> we condemn the judgment and demand his release and free return back home. our position hasn't changed. onduction on the 5th of september last year, was a violation of international law, violation of human rights. >> reporter: he was arrested near a border check point last september and charges with criming including

>> it's a little bit of a complicated story, but i think they want to please the imf, in order to also get their currency as one of the currencies the imf seems to -- deems to be a reserve currency and have it included in their basket of different currencies. they only consider that every five years, and this year is one of those five years. so i think they have more reasons to actually try to please the imf. >> what do you think about this idea of a battle of the world currencies? the imf now seems it's quite happy about its evaluation. >> i talked to a couple of people here on wall street, and they don't really see a currency war yet between china and the united states. even politically, hardly anybody is calling out about this point. if you look at china and the united states, economically they are so connected that if you look at the lower you want at this point, the u.s. imports much more from china than they export to china. so there is even a positive effect on the u.s. economy if the yuan appreciates more. there's a lot going on on the commodity side of the market. the stock ma

the imf had expressed concerns about greece's mounting debts. >> it's an ambitious reform package. it addresses the main challenges both on reaching south public finances and to return to growth but also structural policy frameworks to enhance competitiveness, and finally, it safeguards financial stability and deals with the issues and the banks. anchor: for more, let's cross over to our bureau chief in brussels, max hoffman. the eurogroup has backed the bailout deal, as expected. what is next? max: in some countries, the parliaments still have to approve the deal. among them, germany, and it will have to be quick because the european stability mechanism who owns most of those funds and disperses them wants to disperse a first tranche of about 13 billion euros early on august 20, which is important because that is the day when greece has to pay back part of its debt. there will be more disbursements in september and october, but they will be connected closely, linked to prior actions by the government, meaning reforms, so the government will be monitored, basically, every step of th

it says the imf's contribution is at this stage undetermined. math on this is likely going to work out. 60 defections out of bloc.1 parliamentary she will get help from the coalition in power. that 50% ofote out germans do not want this to pass and only 37% do. that second order question is even more important is the you think that greece will implement the reforms. think germans do not greece will implement those reforms. number.t is an amazing 87% have no faith in the greek ability to deliver. let's talk about the mask around europe. talk us through the parliamentary story to get this twice 6 billion done? hans boy spain doesn't have to take a vote but it looks like they are going to. you need estonia. germany voting as well and then latvia, lithuania and some committees have already approved it. france has given the green light and we have a whole host of countries that can rubberstamp this. it looks like the biggest holdup is going to be germany and it looks like this is going to pass. so from the parliamentary angle this is going to get thro

the imf had expressed concerns about greece's mounting debts. >> it's an ambitious reform package. it addresses the main challenges both on reaching south public finances and to return to growth but also structural policy frameworks to enhance competitiveness, and finally, it safeguards financial stability and deals with the issues and the banks. anchor: for more, let's cross over to our bureau chief in brussels, max hoffman. the eurogroup has backed the bailout deal, as expected. what is next? max: in some countries, the parliaments still have to approve the deal. among them, germany, and it will have to be quick because the european stability mechanism who owns most of those funds and disperses them wants to disperse a first tranche of about 13 billion euros early on august 20, which is important because that is the day when greece has to pay back part of its debt. there will be more disbursements in september and october, but they will be connected closely, linked to prior actions by the government, meaning reforms, so the government will be monitored, basically, every step of th

is it trying to tap into the imf? to ensure it will come to reserve currency? the special digital area for china. it is having an effect on the market. cac 40 is often by zero .3%. it is going to play in stocks in europe. he trading partner. look in luxury and cars. how much does it show china's concern about the economy? how much will a hurt companies selling the to china? the yuan not getting u.s. much bang getting eu as much for your buck. out of greece, a deal is done. greek minister. we want at devil and the detail. it moved a bit. the euro is declining. the dollar rise. up against 16 major trading peers. it is dominating because of the yuan move. china trying to devalue and trying to play catch up as we will speak at the stephen saywell. the dollar has rallied higher against asian peers a global peers, will not see -- will not seen it. the overall affect market to very stable. they let go because the data makes too much sense to start a export growth. dollar rallying higher. will it play in for the federal reserve thinking of a rate rise? is this exporting

>> it's a little bit of a complicated story, but i think they want to please the imf, in order to also get their currency as one of the currencies the imf seems to -- deems to be a reserve currency and have it included in their basket of different currencies. they only consider that every five years, and this year is one of those five years. so i think they have more reasons to actually try to please the imf. >> what do you think about this idea of a battle of the world currencies? the imf now seems it's quite happy about its evaluation. >> i talked to a couple of people here on wall street, and they don't really see a currency war yet between china and the united states. even politically, hardly anybody is calling out about this point. if you look at china and the united states, economically they are so connected that if you look at the lower you want at this point, the u.s. imports much more from china than they export to china. so there is even a positive effect on the u.s. economy if the yuan appreciates more. there's a lot going on on the commodity side of the market. the stock ma

the imf says it welcomes last week's moves by the people's bank of china.t steps in hopes the new system will allow the exchange rate to be more flexible and move around according to market pressures. after three days of depreciation, the yuan has remained fairly stable against the dollar since that last tuesday devaluation. ver news ofan fell o this possible inclusion. one strategy saying traders probably overreacted, misinterpreting it as an imf rejection, which is not the case at this point. rishaad: let's check in on some of the other stories. australia's biggest is rightector employer in the middle of its earnings estimates. update percent from the year before -- up 8% from the year before. by 7%,arnings also up and liquor sales showing a 5% rise. the stock is near a 10 month low. profit dragged down by fuel hedging. losshad unrealized hedging by the end of june. >> hedging fuel prices is something that more than 95% of airlines do. loss,hen we are incurring it is still much smaller. the net benefit is better. this was a major improvement over the last

until september next year, the imf is saying that they can make the transition smoother. hashe dollar, europe, yen been backed by nations including france. towards is urged china a flexible exchange rate. imf report also stated that the ultimate assessment will involve a significant element of judgment. bid, but the's yuan trails the majors. for status, currencies have to be widely used in major exchange markets. the report doesn't make any mention of china's efforts to skim their recent stock market route. lagarde who'sne in beijing's interventions should not derail the overall review. they were saying the proposed the leg until september next year does fit the stage for the imf to add the yuan just before chinese president. yuanank report saying volatility is likely to rise following this report because the was more speculation about an is going to enter the currency reserve basket. yvonne: we will check a more detailed look at that story later on. we want your opinion. use the hashtag #trendingbusiness. profitswe surveyed said fell last week. let's go to aaron clark joi

angela miracle says the imf will be involved in the greek bailout.chancellor says further debt relief for athens is on the cards. >> translator: we already said so back in july with with regard to extending the interest rate. we may have to -- no, not may have. we do have room to maneuver. >> amazon's ceo jeff bezos dismesses a mshg times article outlining poor working continues at his company. he says it does not does not represent the company he leads. >>> exposed, reports say at&t helped the government spy on wiretapping at the united nations. >>> and the faa blames the software upgrade after more than 400 flights are grounded after the weekend, affecting passengers all a along the east coast. >>> now u.s. stocks ending the week slightly higher despite those fears about chinese growth and the intervention on the surntsy fund. right now on monday, the dow indicating a higher open by 11 points. s&p up about 2. best performing secretarierer in last week's trade, interestingly enough, materials which ye year-to-date is one of the worst performing sect

on the reform, she insisted the imf will join. wis indicating here is you put the issue of debt relief. extensiongards to the , the setting of interest rates roomssibly have, we have for maneuver, just like we had in previous times. there's a clear statement that they cannot allow another haircut. about 10 billion would go for bank recapitalization. she is delaying her trip to brazil. she says it is confident it will pass. he has indicated he'll support the package. we're looking to see how many defections she will have. she's not entirely confident this will work out. they insisted there are no guarantees. caroline: it has been a busy time for angela merkel. spree? bit of a hiring hans: her office is looking tired drivers and household staff. they're looking for some civil engineers did we have a new i will like guy and to be angela merkel's drivers. this will be great. limits here. send me your -- no speed limits here. send me your resume. guy: i'm in. [laughter] is she doing some home improvements? what is going on there? hans:

trying to woo the imf to get on board with the third bailout being offered to greece. that third payment comes on august 20. we are higher across the board looking at the eurozone when it comes to equities. the euro is down against the dollar. we've got interesting data coming out of the u.s. later today. we got manufacturing, inflation, we also get fed president william, voting member, speaking on his view of whether has what happened in asia changed the federal reserve? still about 50-50 think we will get the go-ahead in september. euro still slightly lower against the dollar. let's have a little look at how the chinese renminbi is doing. stability back on course. we are seeing it completely flat today. that giving a little bit of these to some of the markets in asia. chinese stocks fell, some feeling they will pull back on support for the stock market. japan, economic data not looking too rosie. does that mean there is more stimulus to come? you will be going to juliette saly to look at that. i want to focus on one complete asset, the oil market, down by 1%. oil is

that is where the german head is right now, and the imf the say you cannot do that. you have to provide some kind of debt relief, and she is right. there is no way they can neve pay it back. brendan: that comparison to the united states is amazing. there is an astonishing amount of intrastate solidarity. we have these things. it is one of the things that makes the united states work. tom: that is why friends want says -- that is why francois hollande says we need more europe right now, not less. bigsparently, rather than a negotiation and sovereignty -- and sovereign default and all that hanging over their head. vonnie: who is it going to be? carl: this is my expression that i have said before, that europe needs a king to do this. she is giving merkel -- madame lagarde is giving angela merkel and out. she is saying i did not want to do this, but the imf said i had to do it, so i am doing it, but it is not my wish for the german people. that gives her the ability to back out gracefully. they are negotiations. one of the keys to negotiating is if two different parties

brendan: the imf released a look at japan's labor shortage. ost the country to percent of gdp per year. you have to see how bad it is to believe it, and it is the subject of today's "single best chart." a percentage of report -- a percentage of employers report difficulty filling jobs. japan -- 81% of companies are having trouble filling positions. in the u.s., the mismatch is in high skilled labor, a job that requires training or a college education. in japan, it is low-skilled labor. it is construction workers, security guards, services, nursing. it has been that way for years but it has gotten worse in the last decade. michael darda, we were talking about scott sumner earlier. he came up with the idea about focusing on nominal gdp because he happened to be an expert on japan. what we are looking at is not monetary, it is cultural. japan does not want to import labor. michael: it is not monetary, it is supply side. this is the structural backdrop of the liber force and -- of the labor force, activity. this is the supply side. nominal gdp is t

that is where the german head is right now, and the imf the say you cannot do that.

the latest ale out has one less partner than the other 2 -- the imf. it says the greek debt is unsustainable and europe must relief significant debt for reforms in athens. that is in line with the greek government's demands. the euro group says it would consider a longer grace time and repayment schedule if greece successfully meet loan conditions in an october review. forms well,nment the imf could join the deal as well, relieving europe's loan burden and reassuring skeptical parliament and financial markets. meanwhile, the greek government has halted work at a gold mine in northern part of the country. greece's energy and environment misters as some of the terms of the mine committed had been violated. he said foreign investments are welcome. the mine is run by the canadian asm, el dorado, and is seen a test case for outside investment in greece. the government halted plans to build a gold processing plant at the same site which sparked protests from mineworkers. --'s move to the markets wednesday offered another roller coaster ride for chinese stock

public opinion is opposed to it but it's going to go through but the real question is still will the imf get involved? because the finance minister this morning ahead of the vote, he is trying to campaign for the vote to go through and he said of course we need the imf's involvement but we haven't heard anything in the last 48 hours about that. >> that's the big question mark hanging over investor's heads is the imf's participation in the greek bailout deal. they want to see follow through of the reforms and that's perhaps going to happen in october and then the imf will step up to the plate but two important votes coming up. >> and the hair cut is key. or do they just want an extension? they don't want the nominal hair cut. >> no, that will make more of a difference in the long-term. probably likely to pass most of the parliaments across europe and then we can move forward in the short-term at least. let's move on. as sinking commodity prices continue to weigh on energy and mining stocks glencore ceo says the company will pull back production to support markets if necessary. this comes

the imf is looking at it that we need to have the debt sustainable now.roblem in the gap between the two. >> brendan: one of the problems is they have sustainable debt. there is a possibility they could be a dad debt restructuring. >> not anytime in the near future. debt is a difficult one particularly on the agreements. what we have seen is a stepping away from aggressive political pressure for fiscal tightening. tom: bruce kasman with us. it has come in very nicely. the markets certainly voting some confidence. we hope you will get smart analysis. we will do that from votto gate. who do that on market makers later. oil stable this morning. west texas, 42 .36 per barrel. tom: good morning everyone. let's get to our top headlines. vonnie: there are 30,000 firefighters battling those wildfires in the west. they will be assisted by 200 soldiers. service says that wildfires will consume more than half of this year's budget. hackers of ashley madison are naming names online. says theagazine posting includes user identities, addresses, phone numbers and paymen

even though the imf is not committed to footing part of the bill. wolfgang schaeuble's letter comes as the lower house prepares to vote tomorrow. francine: royal dutch shell has confirmation to drill oil off of alaska. the company halted drilling in n agroundr a rig ra helping prompt the obama administration to revisit u.s. rules for exploration in the region. manus: jeremy corbett has spoken out on u.k. banking crisis. the hard lined left wing mp has been a strong critic of british banks. corbyn: i think we have to examine what happens when the banking crisis came about, examine who was responsible for the banking crisis, and then work out how we take things forward in the future. get u.k. inflation data and under half an hour. the report for july will show a big fat zero. we will bring you that figure as it drops at 9:30. manus: given the go-ahead. we have more on the shell news on its drilling adventure. what does it mean? ♪ francine: welcome back to "the pulse" live on bloomberg tv and radio and streaming on your tablet the phone. won permission

that debt sustainability is required for the imf to be on board. square that circle is going to be possibly the crucial issue in that eurogroup meeting later today. jonathan: if we wanted a small greek timeline, august 20 is a date we need to look at. the other deadlines, the political votes, which other parliaments does this need to go through now? tony: we've heard from the finnish parliament which has a say in it. they are ready to go. there is also supposed to be a vote in the spanish parliament i believe, and certainly one in germany. that may happen as early as tuesday. we reported that yesterday. and of course there's been a lot of dissent recently in chancellor angela merkel's caucus because they just feel that these german lawmakers for this streak of german lawmakers feels they are being railroaded into something that is an unpredictable commitment. two 86talking about of billion euros over three years. jonathan: tony, thank you for breaking that down for us. just to recap, in the last hour, greek lawmakers have approved a third bailout p

caroline: the imf has tentatively given this the sums up.urrents inome the the next couple of years? 2017, 2018. it is what everyone is talking about. this is a great step toward it. the price action was the main story. the actual liberalization is the kind of thing they said they wanted out of china. project.anity and i think they really gained much from doing it. they took aggressive monetary action to deal with that. think they will be thinking maybe we need to take a look at this fun and maybe slow down the rate hike story? .> i don't think so they are thinking about rate hike at the moment. they're willing to look through certain risk at the moment. forward.hing is moving this may delay the september rate rise cap a little bit. i wouldn't be surprised if we saw a slip. they don't want to scare the horse it has been warned about about scaring the markets. the dust has even settled from the move yet. what harm is there, you could say. western: does this hurt economies? think we will see individual companies get hurt by it. i think overall

so despite the fact the imf was pushing for a debt write-down for years ago, the head of the imf at that time dominique strauss-kahn, wanted to run for president of france. he was told by french president sarkozy, wait a minute, french banks hold most of greek debts, you can't, the imf, say we're going to write down the debt, so they didn't. meanwhile, the eurozone said, we won't let you, the imf, be part of our program, the troika, if greece't pretend that can pay the debt. greece was left with the huge debt. it was pushed into depression. the gdp fell worse than it did in the 1930's. finally, the syriza came in in january -- engineering and varoufakis and super slot, we can to the finance ministers that you can't expect to push these into a depression, push more austerity, and somehow austerity will enable us to repay the debt. that is crazy. and he thought he could reason with them. just whoeans, who is he was reasoning with said, we're not here to talk about economics. we are lawyers. we're here to collect money. it doesn't matter that you're going to go into a depression. it doesn't

the imf stands on this. majority of the bonds, a greater grace period, maybe another 10 years before greece has to pay back. and we also see a lower interest rate. that will be addressed after the second form of measures are voted for by the greek parliament by the end of october. brendan: all right, vassilis karamanis from our bureau in athens, thank you very much. we turn to stephen roach at our desk. when you look at today, basically money is shuffling around through greece and then back out. basically money is going from acronym to acronym within europe. what will happen to help the actual economy of greece? no country isan, going to respond instantly to a bailout package. what this bailout means is that greece is just getting some time to absorb and cope with this, what you call debt sustainability issue. the reforms required for that will continue to be putting severe headwinds on the greek economy, which will be under significant pressure for the next couple of years. hopefully as you have seen in othe

the imf said what china is doing is a good thing. u.s. treasury said the same thing. yesterday, the head of the new york fed said if the currency is going to float, given the weakness of the chinese economy and the federal reserve is likely to raise interest rates at some point, that means they are -- the chinese currency should we can -- weaken. scarlet: china was to be thelved or included in special drawing rights. connect the dots between what the imf did in terms of delaying china's inclusion and china school to internationalize its currency. >> i think you're reading too much bloomberg news. i am up never said that. it was the imf staff paper that said they may propose postponing the limitation of a decision that could be made later this year. scarlet: but it is not happening now. >> imf will make the decision later this year. report,g they said in a they said essentially to china, you have done a lot of hard work. you still have to do more. among the work you have to do is make the currency more freely traded. let market forces have a bigger role. the following

the imf also reduced its global forecast. we look at slower growth. jonathan: someone at ubs called this the tricycle, china as one wheel, europe as the other, both unstable. the u.s., some would say is the front wheel. what is the analogy for what is happening in the u.s.? stephen: my concern is that we've gone from a goldilocks economy that was perfect, not too hot, not too cold, to the microwave economy. it is artificially boosted, too hot to drink and too cold to enjoy. growing economy is not anything like what people forecasted. the beginning of the year, all the investment banks were forecasting acceleration in the threes. we are heading back into the mid-ones and maybe lower. growth?your jonathan: just to wrap up this conversation with you, it doesn't sound like you are a september guy or a december guy. where do use it on what the fed should be doing? stephen: i think the fed will find an excuse not to raise rates. even the nonfarm payroll data wasn't nearly as robust. employment is a lagging indicator. i'm looking at a considerable period of t

they want to get more from the imf. boy do they need the help.h the economy there any war waging in the east. it is reason to do a deal. it is nowhere close. jonathan: thank you very much for joining us. tv, amid on bloomberg new signs of a china's slowdown, the e-commerce giant report earnings today. they lost more than $90 billion since november. theinutes into this section dax is lower. .he selloff continues in europe ♪ jonathan: good morning and welcome back to bloomberg tv. it is jobs day here in the u k. the unemployment figure executives to it 5.9%. the data will be released at 9:30 u.k. time. exitove complete pearson's from business publishing after selling the financial times last month. the stock is trading lower. plunged foryuan has the second straight day. the move came just one day after the record 1.9% cut yesterday. the people's bank of china is trying to give market forces more sway in determining the exchange rate. ali baba reports first-quarter earnings later today. it is been a difficult year for the former stock market darling

he says that is the line the imf will come up with. t of agreement, it could go back to square one. it does look like the new democracy and opposition party will support it. then the question is, does on july merkel's government support it yet that that is an open restaurant. are german lawmakers may vote on this tuesday. between now and tuesday, what is the trading going on to push this thing through? hans: of finance ministers summit in brussels tuesday. we still have yet to hear from the german monetary fund. german officials are insisting you need to have the imf on berd to have the agreement viable. the imf is insisting something be done on the debt. there may be some way to ask the end of the deck. angela merkel leaves for brazil wednesday. that would mean tuesday this deal needs to be passed otherwise of the upper bridge finance. mark: imf participation, is that ns: theealbreaker?ha germans have been clear they will have a difficult time supporting it. even with that change the fortunes of the greek people? end of june when consu

a move that the imf welcomes is a step toward it freely floated currency. markets today, all attention today focused on the fed after minutes from the fomc july meeting. should officials remained concerned about stubbornly low inflation. add to that the u.s. cpi data they came out yesterday weaker than analysts said estimated. let's get to mike mckee for a breakdown. it is all about inflation. when fed officials met three weeks ago, most judged that the conditions for policy firming had not yet been achieved but they noted that conditions were approaching that point. what was missing? >> confidence that prices would continue to move up to some members continue to see downside risks to inflation from the possibility of further dollar appreciation and declines in commodity prices. several noted tighter they were markets had not yet pushed up wages and prices. they agreed to continue to monitor developments closely with almost all members indicating they would need to see more evidence that economic growth was sufficiently strong to feel confident that inflatio

and the finance minister lobbying lawmakers to support the $95 billion aid package even though the imf had yet to commit to putting part of the bill. investors in china may be betting that the government will cut back its efforts to prop up stocks. chinese stocks fell by the most in three weeks. we spoke with anastasia of jpmorgan about the situation. anastasia: if you look at who is most high to the china commodity play, it's latin american countries. fragileed about how the five has now fallen to troubled 10 because companies like colombia and peru are now in that trouble 10 bucket. mark: the composite index fell by more than 6%, the latest move in what has been a roller coaster couple of months. last friday, chinese regulators said they would reduce buying as volatility falls. scarlet: looks like the housing industry picking up steam in the second half of the year. construction rose last month to the highest level in eight years. of 1.2 million homes beat analyst estimates. buyers are being attracted by low mortgage rates. the largest auto retailer in the united states is getting bi

the imf. that is the reason. knew about this. i think the central bankers do about this.they were going to do this. the timing is probably august when things are typically -- tom: i like your idea of october. find a window between the assumptions of september and december. quincy: well, i mean, that thinks they want to wait a little bit longer. december is difficult because the liquidity issue. but the point is, william dudley used the word, after hearing about china, he said "in the near term." aboutguys are so careful what they say. it is if they have got focus groups. tom: they do that with me, to. i have a focus group that tells me to shut up. olivia: no way for october. quincy, how does janet yellen quantifies some further improvements in the labor market? quincy: basically i think what we had -- another read on employment. 5.1%. science. a tom: we are lucky to have hans nichols with us. did they talk about the fed at the white house? you have been in the hallways. day after day after day. does anybody care? hans:science. tom: they respect the church-state separation

remember the imf yet is not on board so the next couple of weeks will be important. >> how crucial tolain why so crucial the imf is on board with this idea of some sort of debt relief? >> well the imf is a major creditor. they have been a participant in the resent bailouts before that and it's generally seen as a really important sign that it's not just a euro zone deal but imf lends more international credibility if you will. german in particular and german chancer ms. merkel is on favor of having the imf on board and negotiations remain to take place. >> politically and economic turbulant time to come. a ferry carrying 2000 refugees docked at the greek port close to athens and left the island on wednesday stopping at several more greek islands on the way to pick up more refugees. it's being chartered by the greek government to ease the pressure which is the place and inflatable dinghys coming from turkey and this is where tourists and refugees are coexisting uneasily, side by side. >> reporter: the sea front at the height of the holiday season has become a refugee camp. tourists mig

the other way around. bloomberg "market day." imf miller. inton will unveil a major platform in her presidential campaign today. her ideaswill outline for making college more affordable, 300 50 billion dollar plan with the were student loan rates and offer free tuition at two-year schools . it will be interesting, and we will bring it to you. a federal reserve vice chairman low inflation and the u.s. will not persist with the economy near full employment. and lee fisher spoke on bloomberg surveillance. stanly fisher. these are things that will stabilize at some point. we are not going to be as low as we are forever. they will meet september 16 and 17. many investors at the federal reserve to raise interest rate for the first time in almost 10 years. coca-cola reportedly funding diet studies that could deflect criticism of the products. they backed scientists who exercise instead of calorie counting. health experts blame sugary drinks for the rise in obesity and type two diabetes. a revamped diet pepsi without aspartame is reaching stores. new

if they wanted to get into the imf they would have done this move before this weekend, before the imf said we're not going to let you in. they would start to liberalize this market. the other part of this is what china did. they said they're going to set the rate based on the market. of course that rate will be monitored. but they're going to let the market set the rate. which means they would weaken more. which is why i have the orange line. i know you're wondering why is that orange line up there, b.k.? b.k.'s going to tell you. this is about a 15% devaluation. why is that significant? when you look at china's competitiveness around the world, price competitive, they're about 15% more expensive than they were back here in 2006, back in 2000 and back in 2008 when the fed started this qe program. it would not surprise me at all to see china slowly devalue this currency to about 7.25. which would be about a 15% devaluation. >> based on this analysis, b.k., what are the trades? >> what's going to bent, right? you have u.s. bonds are going to benefit. china's going to have to possibly bu

. >> angela merkel puts investors at ease after she says the imf will be involved in the greek bailout. the german chancellor says further debt relief for athens is on the cards. >> translator: back in july with regards to extending the charities and with regards to interest rates. we may have to -- no, not may have. we do have room to maneuver. >> another notch back for abe nomics. consumers feel the tension. the market shakes off the action and the -- is closing higher. >>> good news for airbus as it confirms 270 planes to india. >>> and outlining poor working conditions, besoz says the claims do not represent the company he lead. >> some flashes coming from iran. ayatollah khomeini says the nuclear deal won't open iran to u.s. political economic influence. he says it's not clear if iran nuclear deal will be ratified in iran and the united states. those late flashes on this, so he's saying if the nuclear deal does happen, it won't open iran to u.s. political and economic influence. let's move on. the german parliament is to vote on a package for greece on wednesday with german chance

the imf, was that the reason behind it?e in the long run, they understand that we need to refloat and also open a couple of markets to allow them to grow into a high income economy. we have not seen -- >> if i can turn to japan, we have those numbers out. they contracted less than expected. >> japan, the economy is going through major competitions. at least in the labor market, we have seen good improvement. in japan and columbia may have it chance to have the bad economy. >>where do you lay your bed? japan, china, in europe is another major area. >> do you think china equities have bottomed out? focusing on the offshore stocks and the shares. and in asia, we had quite limited exposure. bem afraid that it would trading for at least a few months. >> who wins if there is competitive devaluation? --i don't think it is >> i don't think china is participating in competitive devaluation. that is the major issue. we understand the death of markets. >> some hollywood movie, maybe jack ryan. it is the stuff of international intrigue

it's used to determine the payments made by the imf. it's to be viewed on a similar footing to establish reserve current sis like the dollar and euro. it loosened controls earlier this month. dollar yuan at 6.3. >> stick with us here on worldwide exchange because we're going to talk politics. donald trump has stolen the show again. this time launching a personal attack on one of his leadership rivals. the details of that story up next. earning enough cash back from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them. that's the excitement of rewarding connections. apply online or at a bank of america near you. ♪ 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space

the imf and the world bank have said to them, don't do it this year. in september and something happens, they're going to lose all credible. >> do you think anybody cares? they don't care what the world bank says. in central bank circles, those are minor organizations. if you're the chairman of the federal reserve, this world bank imf thing is getting out of hand. they're not that wbig. they're not brazil or south korea. >> that would indicate that the fed agrees with you and they're rather presumptive and say we don't have to listen to you and if something goes wrong, they'll lose credibility. >> if most people had to put their money on one or the other, i know where most people would go. >> i understand fully what you're saying but i'm saying if they go ahead and something goes wrong, their credibility will suffer greatly because people will say you were warned. why did you do that? you saw what was going on around you. how credible is your leadership? >> and that's a very dierngs thing. >> you can't do that is what you're saying. >> the biggest lose

small and remember it was he that was against the program that was coming from brussels and from the imfuropean central bank and it's now he in the form of the prime minister himself that have changed their mind and last week in the bailout vote in the greek parliament they won with votes from the opposition and there is clear majority in parliament and also among the greek population for the current cause of action. i do not think that a new government would overturn that majority. >> in which case if you are saying the political passage is going to be fine for reforms, the other think their mind is whether greece can carry them out anyway and if it's physically and financially has the ability to do that when it has this great big debt hanging over it and that is another key discussion, isn't it, for everybody in europe is what to do with greece's debt and never mind refors. >> yes, and the debt still needs to be discussed and the imf sofa is not on board and they said they will only go on board if debt relief is being discussed so this will be seen in the next couple of weeks and month

the imf itself does not consider it to be undervalued. ust be there for the policymakers to weaken the currency. they need to consider it through the capital outflow angle, they do not want to trigger a rush of money leaving the country if they devalue. francine: the latest on china. some greek industrial production figures, falling 4.5% versus a year ago. we are looking at greece trying to find a resolution. knew it has been tough. but in terms of whether or not that brings closure to a successful bailout is something we need to keep an eye on. euro-dollar 1.964. manus: the most defining moment in the last hour, erik nielsen and regards to growth in greece, he said the next bailout should work. the last one showed up moderate signs of growth. all the data points are going to add. francine: we're looking at some bank stocks under pressure in athens. if you look at the stock exchange, it is gaining 2.8%. manus: let's move along. stocks in china, meanwhile, in brazil and china, mozambique, they are under the specter. a tough time in the emer

has refused the reforms of the imf. it is totally normal for the chinese to say, if you do not want us, we will create our institutions. ofhave to think in terms world order. goodnk kissinger was a aces. order andhave a world speak the same language anymore. to sorry to be intellectual. tradition. >> i disagree a little bit with that. go from the north of africa and over, it is difficult they are what they think. when you have a country like libya and all of this has been done in different malicious and in it.lts u.s., of course, and you see the security matters that are important. it would be reacting to a different crisis. the secretary of state speaks of the transatlantic renaissance and you think that is great? >> that is great. when thee questions obviou -- the answer is obvious. moderator: it is part of a new way of working. you talk about countries going back to old toolboxes. do you disagree with u.s. concerns of defense spending in europe? we hear some say that there is a spending.fense i will quote someone who

rebecca: the imf put out a supportive statement last night. en though they are not prepared to give greece more that, that is something will be discussed later in the year once people can look at how greece is doing under the new package. the imf has said that it does support greece and thinks it is moving in the right direction. the tough sell right now is the german parliament. every vote takes place after all of the others. first greece both, then the finance ministers, then the germans will consider next week. if they can make the case to their taxpayers that greece is doing the tough things needed to earn the eight, things could move forward. -- that question is still unanswered. rebecca christie joins us. let's continue the conversation. fellow.t is a research it is very good to see you this morning. they are still going. what do we think. can tsiprasjority bring with him to get the spoke past? -- passed? >> it is more complicated this time. -- this willyriza definitely be a consideration , thelso this official leader of the left platform

is the imf going to continue to snub the yuan as a reserve currency?rdere has , maycame out with a report be some suggestion of billing decision until 2016 to provide delaying a decision until 2016. international governments decide whether the yuan joins. the united states has a voting right of 17%. mark: let's talk about exposures, specifically among south american countries. chile, they all have a lot of exposure to china. talk to us about the reaction that they are having in their markets to the events in china. look to -- the currency with the least exposure , low oil prices come any deflation story, the one currency that has the least exposure is the mexican peso. has exposed itself to china, number one trading partner. seentunately, we have not the diversification of the brazilian economy in the last 10 years. it was easy to export on the soft commodity side. with copper -- those currencies are the ones that you have to look out for. brazil has its own domestic problems at the moment. we are very cautious on brazil. mark: if china's economic grow