so i think right now the imf has considerable resources. do have to ask the question always what would be the consequence of the next crisis. you don't have the luxury of knowing the precise contours of a crisis until it's upon you which is why you have to have the tools in place but also the adaptability. look what happened after the financial crisis. the new arrangement to borrow was funded rather quickly to put in the imf the facility that could deal with that crisis. if you had to create an imf out of whole cloth, you couldn't have put that in place to quickly. and i don't believe that any one country, not even the united states, could have had that amount of firepower. >> so you make in your essay a case and a persuasive one that notwithstanding the government's advantage that the fund and the bank begin with, quite a reform is being constructive because you're allowing emerging nations to have a larger voice and stake in the international system. so i'm wondering if you would apply the same logic to the question of global reserve curr

i've let the imf know about that. they're aware of my concerns and this legislative initiative as well. with that, mr. xharm, i appreciate the opportunity. >> chair now recognizes the ranking member for three minutes. >> thank you very much, mr. chairman. i would like to thank secretary lew for coming to testify before us today on the state of the international financial system. imf quota reform package that was adopted after a five-year delay as part of december's omnibus spending bill is an important achievement and a positive reflection on the perseverance of u.s. treasury officials and democratic congressional leaders to get this deal done. previously, the failure of the u.s. congress to approve the imf quota reform had put the world economy and financial system in serious jeopardy. with ratification now complete what is essential to u.s. interest is to restore some impetus to ongoing imf reform and to repair in part the damage done to the u.s. reputation for leadership. the price the administration paid for the qu

the imf cutting global growth prospects. istic you are, it's not enough. what changed in the last few months from january to now that made you more so. >> we've seen some loss of momentum in advanced economies, including the u.s. also japan. we're seen continuing headwinds in the emerging markets, particularly for commodity exporters. we had another bout of financial volatility in the begins of the year. markets have largely recovered that takes a toll as well. >> it might be somewhat surprising for people who follow commodity prices, oil prices have stabilized a bit. do you not see bottoming in the deep recessions of brazil or russia as result of what we've been seeing from commodities? >> well, we do see further out in our forecast some restoration of growth in those countries, but they've also been stressed because of political pressures, geopolitical pressures, sanctions in the case of russia. if you go out to 2017, 2018, we do have improvement. >> you led the charge, you and christine lagarde on easing monetary policy, m

the imf is the only ally that greece has and tsipras has with debt relief. anti-imf- adopting an rhetoric has more to do with greek politics than anything else. guy: is it just domestic party politics at its worst? will this move the story forward? keepser: if greece adopting this stance and continues to be hard on the imf -- it is hard for the european members to pass debt relief through their parliament. away, that iss another 35 billion burden for europe. it is hard for the europeans to pass this in their own parliaments. unless greece does back down, it it will get messy. we are hours away from the first meeting in the renegotiations between the imf and greece. we are all booking tickets. thank you indeed. in an officer. good morning james. do you worry that this is another risk we face this summer? where brexit and a lot of politics to think about more globally across the world. this could be kicked further down the road if everyone wanted this to happen. the harsh reality is that greece will not pay off the huge debts. at some point, there will have to

why is this war of words happening between the imf and the greek government? e have been some leaks somewhere. yes, wikileaks published a transcript of a reported dialogue where these imf officials are discussing allegedly the possibility of the imf pressuring america into accepting greek debt relief. the greek government was hasty to say the least in adopting these leaks into official dialogue. officials accuse the imf of using the ongoing refugee crisis, the referendum and the july repayment needs and triggering a before event. there was a letter asking to clear up this situation and she came back with a strong response adopting this, we are the adults in the room stance. what she has to do is make sure the officials in athens are safe, that private matters are secure, and that there is no way that imf is discussing the credit default event for grace -- for greece. manus: i read that this is all about the imf being fully on board. if they are not on board, there are no rules. it is just politicians battling what to do. if the imf is on board, there are rules.

pensions are rising between greece and the imf. director christine lagarde has rebuffed greece's calls to replace top officials overseeing the country's bailout . she said the imf is a good distance away from an agreement that would allow for additional you loans. we go to athens where nico's chris louras is standing let's talk about this leak first which is i believe a transcript of a conversation among officials that essentially says, how are we going to force germany and the other member nations to take a haircut on greece's debt? greeceussions between and the imf have to send it to name-calling over this past weekend. after wikileaks published this transcript. the greek government was quick to accuse the imf of banking on credit default event in order to force everyone involved in the greek bailout to sign up. th-- christine lagarde responded with a letter saying this is all nonsense. she actually hinted the greek authorities have been spying on imf officials. pretty strong statement. the greek government responded again today

debt relief for greece or an exit of the imf from greece's bailout program? >> we've promised greece, if necessary, we will do more to relieve their debt burden. that promise still stands. we will, in the coming weeks, have to debate what more is needed. so i'm good for that promise. what i cannot accept is that the imf leaves. i need their involvement. financially they're involved, but on substance, they're very valuable. they have a lot of experience, and they keep us focused. let's put it mildly. >> well, spain's acting industry minister has announced his resignation effective immediately after being implicated in the panama papers leaks. the european union's five largest economies have forced a deal to share information on the beneficial owners of companies and trusts. germany, the u.k., france, spain, and italy are all working together to deliver what the british finance minister describes as a hammer blow to tax evaders. the german finance minister also welcomed the pact as an important step forward. >> you already pushed forward the laws against unfair

the imf says given the target set by china, the imf expects more policy stimulus to stimulate growth,lowing resilient domestic demand and growth and services, offsetting the weakness in manufacturing. longer-term structural issues are still at the heart of the imf's concerns and china. a gloomy forecast casting a gatherpicture as leaders for the g-20 this week. some bright spots, emerging markets growing, india one of them. a more: we will have detailed look at that story later on. tweet us your thoughts @rishaadtv, using #trendingbusiness. the pressure mounts on the malaysian prime minister, one of the stories we are covering. here is around that. rosalind: the investigation into the malaysian government fund is widening. they are asking luxembourg and singapore for help. the attorney general is investigating two former officials from the united arab imris. -- eric emirates. -- united arab emirates. they are also the subject of probes in other countries under allegations that it was used to funnel money. general hasttorney cleared the prime minister of any wrongdoing. japan plans 711

we have to increase discussion with the imf; we have to talk about brexit. it is not the right time. yes, i can see that it might the good to increase rates, but the worst thing that ecb did was to increase rates and to find out it was the wrong move, and that destroyed the confidence. tom: where are we right now? let's go to the terminal. francine is checking her account in panama. when i look at the two year yield in the u.s., the u.s. to year yield, here is the trend for rising rates. and we go back and forth, and we rolled over. we're almost back to two standard deviations. this is becoming, drew, a significant move to lower rates. >> yeah. i think part of the problem with the argument to raise rates is -- one of the things we have to consider is they are making a mistake by letting things get out of hand, and the alternative is driving us back into a recession. we should talk about risks to both sides. one of the, i think biggest risks the fed is running with credibility is when you tell us if you get to a certain unemployment rate and inflation rate, th

the remits long been of the imf. the backdrop enough focus has been on china. what we see in the policy community is a bit of that peddling. the stability around currency is more important to the outlook then liberalization, free market setting of currencies because of what we saw happen in january and february this year when you saw the currency volatility spread throughout the market. there was a little pullback. on the flipside was the big push back to the doj around their position of ink -- of negative interest rate policies and not having that fully directed at currencies as the core of monetary policy. a couple of mixed messages around there when it comes to global currency matters. jon: thank you very much. do not miss our interview with the imf chief economist later today. ♪ up next, we will break down the markets for you. we will get to some of the big calls on wall street with crude oil trading lower going into the open and noticed up 2/10 of 1%. ♪ th david:raytheon is asking the government to increase purch

but, the imf expects that the epicenter of many of last year's industrial earthquakes, china, will growter, at 6.5%. helena: let get more on that with our man on wall street. how are markets taking news of that imf move to downgrade the global growth forecast? jens: at least, when it comes to stock prices, not a big reaction over here. it is tough to predict the future. obviously, the imf struggles quite a bit to do so. some traders told me it is pretty odd. two of the reasons why they lowered oil prices -- lowered the output, lower oil prices and not so much growth in china. just recently, oil prices increased, then the imf actually increased the protection -- the projection for chinese growth. it is tricky to predict the future and nobody paid too much attention, at least here on wall street, about what the imf had to say. helena: oil prices seem to be jumping to their highest levels in a year today. jens: it is pretty astonishing. this within one week, oil prices are up by a good 17%. on tuesday, oil prices increased another 4%. one reason is he weakening of the dollar in the last co

the deputy managing director of the imf. discussion, final discussion -- final thoughts from ken rogoff coming up. stay with us. ♪ tom: churning and range brown, the forex report. -- and range bound, the forex report. yenng in that strong against the euro. francine: coming up shortly, it is "bloomberg ." david, what do you have on the show today? david: we have citi earnings coming out on the program. scott minor of guggenheim, and christian omani of oppenheimer. rousseff's possible impeachment in brazil. that is coming up on "bloomberg ." tom: let's talk with ken rogoff about our single best chart. this time is different. this is not in ken rogoff's book. maybe it should be. , to bring upmple the chart here of two decades of work. g7.sed to have real gdp, larry summers talks about secular stagnation. is that what we're looking at in this chart? ken: i think the primary things going on our demographics and the aftermath of the financial crisis. if you use the word secular, i our growth isces fast is as good as -- tom

the imf and the world bank holding spring meetings in washington today. on the agenda, the state of the global economy. we'll bring you a front row seat. >>> and a night for the history books. the golden state warriors win their 73rd game, breaking the record for the best nba season ever. and kobe bryant closes his storied career, scoring 60 points to lead the l.a. lakers to victory. "worldwide exchange" begins right now. >>> good morning and welcome to "worldwide exchange" on cnbc. i'm sara eisen reporting live from the imf meeting in washington, d.c. we are here at the imf world bank headquarters, wilfred. it's going to be an exciting day. everybody who matters in finance and central banking is here, and so are we. >> well, sara, i'm looking forward to it immensely, though i'm sad you're not here. what it really underlines is you care more about people like jack lew and christine lagarde than me. which i get it, they're important interviews. but i've taken note of that today. >> just this day. >> we'll get more on what sara has coming up on this great l

david: maurice obstfeld from the imf, thank you for joining us today. utube front man is testifying before a senate subcommittee on the causes and consequences of violent extremism and the role of foreign assistance. which makes it impossible for these agencies to plan, which is madness, absolute madness. ♪ another idea -- ♪ ♪ david: this is bloomberg markets. winds a bill by brazilian -- lawmakers first the brazilian president was step closer to impeachment. david: brazilian shares have gained on speculation there will be a change in government, but the results of engagement remain unpredictable. we have a eurasia group director of latin america with his poor -- itit said there was could be more momentum for president rousseff. do you stand by that? has been thatief there will be an impeachment of the vote yesterday in the committee was somewhat tight. it will be a close call to the end. but we expect the floor of the lower house to approve impeachment motion by sunday. we're likely to have a new president in brazil by early may, as soon as the senate .

the imf people -- why? one may accuseer them of, and there is a lot to say about the imf, at least they can add, subtract, and they know the greek debt is unsustainable. the numbers will explode, they will fail. in six months time, we will have another failure. so the imf -- wherever the imf goes, tries to impose what they refer to [indiscernible] did i doing labor, devaluing pensions, closing down small farms, small shops, pharmacies and supermarkets. liquidate, liquidate, liquidate. that means shrinkage in the economy, social economy. that is their want. the same time, they are clever enough to know when you shrink the national income and social economy of a country like greece, then you cannot expect them to repay the gargantuan debt that has been a key related. villain.like a call it peace. the german government on the other hand, and the european commission that is acting on their behalf, since they do not want to talk about the debt because this would mean going to the federal parliament in berlin and

on the ability of greece to carry its debt load, the imf is for it. are for the imf because they want the imf conditionality. they want this extra, on political player to be there, to help them keep up the pressure on greece. hans: the days are getting longer in germany. why are we talking about greece yet again? why are we back in this conversation? >> because greece is not doing what it was supposed to do. nationality,with but the real structural reforms, the underlying agenda is not addressed, and it can't really be addressed because this is not part of the fiscal conditionality. it would require much more political effort. anna: how united is europe, then, on this challenge? this is anna in london. you highlight many areas of european policy for europe's leading nations aren't quite on the same page whether it is on refugees or the terrorist threat. different countries pointing looking for a call to action on those things and not necessarily finding europeans united. is europe united on how to deal with greece? your previous comment suggests no. >>

would like the imf to police. me of the things that troublous in the international order, either excess u.s. indebtedness, global imbalance. in extreme reliance on the dollar globally. to encourageetter private actors to use other capital markets more. you could make it more restrictive for corporations from asia to come. i think the u.s. financial market has the leadership role they had in the world because of all of the things that makes the united states, the united states. , theical stability liquidity of our markets. those are all good things. i don't want to change that. i want to protect that. that is one of the main point that i'm making. policy,comes to fiscal we ought not to take our ability to borrow infinitely as license to borrow infinitely. during the second, we dug our way out of a very deep hole that we got into in the intervening years. we need to look on the horizon. great progress in this administration in reducing the deficit by three quarters, stabilizing the debt as a percentage of gdp and cre

caroline on the imf, what do we have? inating headlines coming out now that the eu is working in good slave -- good faith to finish the greek review. words from christine lagarde to alexis tsipras. achievingcerned about progress in an environment of extreme sensitivity. wikileaks released a transcript of the imf looking to want to push more debt relief toward greece. let's get more on this story. it is a fascinating one. let's talk to bloomberg news in athens. set the scene, if you will. arguments between creditors and greek politicians and heated words from either side. yes, well this weekend has been a game changer in our of how the talks were going. if you asked me on friday, i would say we are a week away from an agreement between the two sides. now, the imf has stated that we i ways away. the greeks are not ready to meet the fiscal targets that the imf and their european peers look for the greeks to hit. ally greecehe only has on debt relief. this has been tsipras' holy grail so far. tom: i like what you said about th

the imf does not refute the leak but says it has eroded trust. a former greek representative to the imf thinks it's likely the government leaked the dialogue. >> the president is trying to manufacture a crisis in hoping of pushing the imf out of the negotiations and negotiating just with the commission, which appears more willing to accept the greek positions. he's not pushing as hard as the imf formers for measures of high quality with a permanent, lasting impact. >> many here think they'll be dancing to the same steps until better greek leadership comes along. this looks increasingly like a well-rehearsed script. awe tear rit governments worn thin by discontent have lived short lives, only replaced by austerity govs. the greeks wonder when it will all end. al jazeera, athens. >>> prostitutes in france are protesting against a new law that makes it illegal to pay for sex. they say the legislation passed on wednesday will threaten their livelihood. those found paying for sex face a $1,700 fine. this is to stop human trafficking. the government sa

it's just disappointing growth, a bit like the imf is saying at the moment. there's nothing really outrageously disastrous here, just disappointing. so germany, the u.k. is in line with germany. sign signal 0.4% growth. france is the disappointment, stagnating. you have some real pockets of growth as we've seen in the data this morning. spain, 0.6% q-1 growth maybe. really, pockets of growth. the big disappointment in the world in the recent months has been the u.s. we've got the good nonfarm payroll numbers, but certainly the pmi surveys, the flash numbers we published last week, they've come down sharply in february and march, suggesting a cooling in u.s. growth. it's coming down more in line with what we're seeing in the emerging markets. >> how much of this in the u.k. has to do with this referendum on the policy coming up? if i'm a u.k. business right now and i'm asked, what do you think about the future, i might be a little more cautious at the moment and wait and see what happens with this vote. >> absolutely. if you're thinking about expansion plans o

there was always a message at the world bank imf -- will be the message of china in the hallways of themf? >> that's an important question. what's interesting is that the ins's view on china has changed. if you look at the china theyast back in 2015, what were looking at is the u-shaped pattern for growth -- they expected a decline in growth in 2016 to 2017, that a recovery toward the end of the decade as china benefited from a reform dividend. trying tolater forecast -- they raise the forecast for 2016, but that has come at the expense of a continued slide in growth in the imf forecast for china back to 2020. that really gels with the message we're hearing from other analyst -- concern that china is buying a short-term boost to growth by allowing more rapid letting but they will be a price for that going forward. tom: with all the research you china feelble, does like it is part of the dialogue of the new mediocre or do they feel removed from it, where they don't have to partake in the debate, the discussion, the discourse over a slow global economy? >> well, if you look at some of the

joseph: i think they are dead on the vine. tom: imf meetings are always behind the scenes.ne over the four seasons bar out there in alexandria late at night. what do you expect to see at the spring meetings given the dearth of trade? joseph: more caution, more lip service, and more prodding of fiscal infrastructure spending. tom: this is one of our great charts to march here, the exports going flat. of duration of the flatness the world trade is extraordinary. extraordinary, and we are not paying enough attention to it. tom: francine, we are going to do that this week with ken rogoff and adam posen. ,rancine: it is unclear to me and i hope joseph can give us some insight. the economy is depressed, fragile, and we are not seeing anything that can lift us out of this. can anything bring us to a world recession? should we be more worried about risks, shocks to the financial system? joseph: not yet. central banks are pumping money, everyone to spend more. the key would be corporations. corporations are the one that drive trade. is ok, not great, so they can continue on. you get

and the imf actually upgraded the forecast for china. a lot of the nervousness in markets, certainly in autumn of last year and spring of this --r, seem to come through starting with concerns about the chinese growth story. does this harold something more positive? patrick: china is not to be getting well what they're doing. that is greater a lot of problems, when they devalue the currency in august, that symbols a hard landing read that was not the case, it is not communicat ed. we have come around the corner march manufacturing is up showing expansion. the signs of china being a hard landing of think numeral them out now. it is not on a real sustained, robust growth, we have difficulty getting rid of overcapacity. what i think the contagion risks about a knock on the western world, you can roll those out at this point. in terms of $3 trillion worth of reserves. manus: the finance ministers speaking at one of the main italian newspapers talking about the bank, i misspoke there completely. the helping hand or the backstop of the bank, th

it is not all fear coming from the imf. is some hope, and that could be from china and more stimulus. take a listen. >> countries around the world face very different challenges. no one-size-fits-all. so all countries will have two follow growth-friendly fiscal policies. all countries will have to build , butient public finances all countries would have to pursue smart fiscal policies. that is, fiscal policies that are well adapted to the particular circumstances of the country. >> it's not just emerging markets that has problems. the imf is says developed well, --re as developed economies are as well. for example, like in japan, the imf once developed countries to ramp up government spending or to cut taxes to encourage consumer spending. in particular, the i'm of pointed to japan, saying it should increase stimulus to balance out the raising of its consumption tax. would be ad brexit shock to europe and the rest of the world. looking ahead, we will see what comes out this week as policymakers meet and washington, d.c. for

just a flavor of some of the conversations in the imf building here at the world bank imf spring meetingsara in washington, d.c. sara eisen, thanks. >>> stocks not going anywhere. bob pisani's on the floor with that. hey, bob. >> not right now, karl, but we've had a nice move up yesterday, remember, and also, remember big moves in asia. take a look at what happened overnight in asia, nikkei out-performing. a littlen weakness always helps. the hang seng is strong. we'll get china gdp tonight, but that's the highest level for the shanghai since early january. nikkei also on the up side on yen weakness. fractional gains in europe, but what's interesting is here in the united states, what's going on, if you look at the energy sector, modestly to the up side here in the u.s., despite the fact that the russian oil minister said there may only be a loose agreement to freeze production in doha. so, if you look at energy, well, energy just went negative. that's interesting. it was positive just a moment ago. industrials, consumer discretionary and financials fractionally on the up side. take a loo

but in the past, there is nothing to suggest imf wanted to go down that way. i think the transfer is interesting. overall, the transfer doesn't tell us anything new, first of all. the position by the imf, it's interesting to show there's a little area between the increase if greece. apart from that, this story was made much bigger than it is just by the massive political consumption, and it's already coming to an end. >> however it does show, like you say, you have this route between the creditors that still isn't going away. how do you think that tsipras is going to be able to benefit from the new implications in the report and use it to benefit? >> at best, they can try to use it domestically to bring momentum. it flies particularly well with its own voters and party members, so on. it's starting at 4:00 this time, there's a long list of issues from the fiscal side, the tax report, so the reality will soon kick in. and i suspect the tsipras around this leak will soon come to an end. >> so you don't think that the imf staff are looking to leave the program in

the imf report warns negative interest rates could reduce profits of regional bankser and credit unions. the director of the imf s ske with nhk. >> i think that negative rates are a net positive for the economy because they have to relax further monetary and financial conditions, and that's something that should support demand and inflation. >> the imf report also touches on japan's plan to raise its consumumption tax from 8% to 10 next april. imf officials support the hike as well as short-term measures to deal with the impact. >>> checking the markets the rally in tokyo shares continued for a third day on the back of a weaker yen. and it reached its highest close in more than two weeks. for the details we go to the tokyo stock exchange. >>> investors are in a buying mood after encouraging figures came out on wednesday. sentiment was boosted by the rebound in oil prices which cents tokyo shares higher. nikkei average added 3.2% to end at 16 rk,911. the improved sentiment drove down demand for safe-haven assets. the pair went into 109 level touching a one week high. exporters are breath

we were trying to tally up how many times the imf has done this. 4 times in one year. speed of these downgrades mean for the u.s. economy? >> the u.s. economy is part of the problem. we have a growth environment where the first quarter of the year could have been flat. by the time it's revised, it should be 1% but that's below are potential rate of growth. we are pulling the overall equation down. as our most other economies. there is no real present -- positive growth story. issues of thent market is that many investors think central banks are impotent and cannot do anything despite the lack of growth globally. is that a risk that we are so negative that any upside surprise in the u.s. will turn everything around? >> i don't think we are as negative as we should the. i think monetary policy has run its course. i think we need to break to a new form of policy in order to get the u.s. economy going. the problem we face is not supply issues. we face demand issues. we have an imbalance of supply versus demand. supply is exceeding demand and we are doing nothing to stimula

the imf cutting its world gdp forecast. f a prolonged slow growth has left the global economy more exposed to negative shock. inflation and you k coming in higher than estimated. sinces the fastest pace after clothing prices increased as well. the cio of brooks mcdonald. i want to start with the news from interfax. we hear that russia and saudi have reached an agreement on an informedeeze citing an diplomatic source. we have been here before -- it leads to the obvious question. do you think oil has bottomed? assuming we get no deterioration in the global outlook, it probably has. our view that oil price in the long-term is in a new trading range which historically is its long-term average. good news for the global economy and probably a reflection of the fact that maybe the global economy is going to avoid a recession. the imf saying a prolonged time of slowed growth has left exposed to negative shocks. how concerned are you about these shocks? guest: very concerned. high debt levels, lack of demand, excess savings are part

the imf is not impressed. the donors on this economy, saying that the numbers are not as rosy as they seem. later this week, we will get gdp . we talked a lot about japan, but we could end up talking a lot about china and that is a positive story. guy: breaking news coming through from peabody. saying the majority of its u.s. 11.ies filed for chapter more details on that story as we work our way through the story. we will get the chapter 11 details coming through. we will come back to that

the imf wants a contingency proposal. say it is not part of its constitution to allow such a move. where do you stand? >> exactly. this is the debate. upfront measures. the measures needed for greece to reach 3.5% gdp primary surplus in medium term according to the european commission forecast. i would say those agreements are basically reached. this work is basically done. it still needs to be completely finalized and of formulae's. -- formalized. and what about the imf's scenario comes into place. of gdpdiscussing 2% contingency measures. a discussion not only of the substance of the measures but also on the legal form. we are ready to cooperate and work closely with the imf, greek authorities to find this appropriate legal form. guy: what you are talking about is what is already in place, that it is enough. do you think the imf should be satisfied? does it need legislating? institution has its own forecast and procedures. according to european commissions forecast, if greece measures3% gdp upfront which are already bas

the imf warning comes ahead of its spring meeting, which gathers finance ministers and central bankers from around the world. our business editor markus karlsson is also there. he joins us now from washington, d.c. are right. yesterday, we heard from the imf when it came out to cut its global growth outlook for this year to 3.2%, which is lower than previously forecasted. today, the international monetary fund has been raising another warning finger. this time about financial markets and their stability. we will talk more about the so-called global financial stability report now with the man who is in charge here at the international monetary fund when it comes to these issues. thank you very much for speaking to us. >> my pleasure. markus: why our financial risks higher now than they were, let's say, six months ago, as you state in the latest edition of your global financial stability report? >> risks are higher because of several factors. first, because macroeconomic risks are higher, because the economic growth -- outlook for growth and inflation has become weaker and more uncertain

the imf is not impressed. the donors on this economy, saying that the numbers are not as rosy as they seem. later this week, we will get gdp . we talked a lot about japan, but we could end up talking a lot about china and that is a positive story. guy: breaking news coming through from peabody. saying the majority of its u.s. 11.ies filed for chapter more details on that story as we work our way through the story. we will get the chapter 11 details coming through. we will come back to that time.ocused business in we do have a very positive call on where we stand in terms of the european equity open. european stocks up by 1.7% this morning to london is a little bit of a laggard. it looks like the dax is going to be storming ahead on the back of the chinese data we are seeing it looks like a very positive figure. what else is on the move? hans: oil. it is up almost 13% over the last three days before today. $40.wti and brent over shanghai rallying on the back of those numbers. we are seeing a slightly weaker yen.

i think this is simply jack lew's selloff, to make an attempt to be relevant in the imf context. filled will be on bloomberg went today on the kickoff of those imf spring meetings. in are next hour, one of our most popular guests in demand. jeffrey curry of goldman sachs; he nails lower for longer. he reemphasizes lower for longer. bloomberg "surveillance." ♪ francine: i'm francine lacqua in london. tom keene is in new york. we are focusing on microeconomics and finance. let's get straight to the bloomberg business flash. nejra: thanks. u.k. inflation jumped to a 15 month high in march. consumer prices rose half a percent from the year ago, the fastest pace since december, 2014. an earlier easter boosted airfares and closed prices. inflation remains well below the bank of england's 2% target, by figures suggest it is picking up after almost a year. lvmh fell to a three-month low in paris after reporting lower than expected revenue growth. it declined 2% and burberry dropped as well. recent terrorist attacks are deterring travel from asia and weighing on european sales. alibaba is

the imf will do their part, but the books have to be balanced.ou have to find agreement that clears everyone but make sure that there is sustainability on greek debt for the future. stephanie: that is francine lacqua joining us from franklin. coming up o n , the u.s. treasury targeting corporate inversions putting into question the allergan-pfizer deal. those details next. ♪ jonathan: it is a risk off day in the markets. in fx, a stronger dollar store with the exception of one notable currency pair. dollar-yen down by .8%. a stronger japanese yen. gold up, yields down. down by five basis point to 0.0 9%. for the first% time since april 2015. stocks lower in europe and crude down 1/3 of 1% on wti. let's cross over to matt miller for some of the big analysts calls. miners out of your. bank of america, merrill lynch upgrading e.u. miners to neutral. no longer saying sell. tail risks have receded from equity markets after a recovery in commodities prices. etf is up 39%. the big mindeers in europe getting smoked today is markets fall. glencore dow

populist politician, to go for the imf. in its history, it does have these examples of coming. in and bossing people around. one of the reasons why we now have china supporting an asian investment bank is because -- the things they remember is that in the 1990's when people from the imf came around and lecture them and these were the same people who were in charge of the .merican economy which had vonnie: its vonnie: own problems for the first time ever, they have real competition, the imf so they have to play nice. what is this fiscal space she is talking about? of countriese end which could expand should and eventually you go to germany. germany is the archetypal case. mrs. merkel would be extremely skeptical. dome -- theye differ on this, lingard guard is very much from the school of if you have the room to expand and the rest of europe needs expansion, please do it. --kel has this habit of whenever people talk about the punch ball, she thinkseople will just -- gravitate around it but nothing will actually happen. david:

there was a hint that the imf would cut its growth forecast from 3.4% to this year. the risk including terrorism were hurting growth and action was needed. >> we are growing. that is good news, indeed. the not so good news is that and its is too fragile durability is at risk. we have made progress. because the growth has been too slow, too fragile, a lot of people are not feeling it. >> it was not a good day on the european markets. -- christine lagarde did not help things. midpoint in the trading day falls to 1%. peugot is down. >> the united states, bp's settlement with the gulf of mexico oil spill has been finalized. >> they had to pay 20 billion dollars in penalties and damages. 11 people were killed in the rig explosion. an estimated 3.2 million barrels of oil's were spilled into the water. aside more than $55 billion to cover the cost of the disaster. they're waiting to finalize the settlement with individuals and businesses who were affected. >> a story about the air france cabin crew flying to iran has been resolved. >> company asked cabin crew to wear a heads

more so than the imf numbers yesterday and the conference. >> no, the imf global economic outlook is the best read. that's a must read. but also i love the beige book. >> very good. so lots of things to look out for today. in corporate news, nearly 40,000 verizon workers from massachusetts to virginia are set to walk off the job and strike at 6:00 a.m. eastern time. the union's workers in the wireline operations, which includes land lines and internet service have been working without a contract since august. verizon says it's been training thousands of nonunion employees to fill in for those who walk out. >>> got a few stocks for you to watch today. the firm starboard value upping its stake in depomed to 9.2% now. starboard said it intends to nominate a slate of candidates to the board to shake things up at the firm. >>> mccormick walking away from its takeover proposal for the british food company premier foods. the american spice maker saying it decided it would not be able to propose a price that would be approved by premier's board while also delivering for its own shareholders.

the imf cut its global forecasts and that will have an impact on the united states.what is the in game of this global experiment in unconventional monetary policy? --it helicopter monday helicopter money and where are we all headed -- where we all headed basically? [laughter] david: great question. we are already eight years in. the question you ask yourself, is there a recession coming? what is the fed and the ecb going to do? they were taking about helicopter money. the big concern in the u.s. is that we have not heard from the dead about what it could do -- we have not heard from the fed about what could they do. the end game is trying to .estore ourselves to a long run i don't think that is on the table because the neck shock is rates and you cannot cut from 500 basis points. the end game is to worry about what is inevitably coming. mark: david, always great to see you. thank you for joining us today. coming up on "bloomberg markets," north carolina and mississippi paying the price for their anti-gay laws. how big businesses are standing up for the lgbt community

the ultimate passage of imf reform was pivotal. needed to sustain our economic leadership and adapt it to the challenges of our time. we know that the global landscape of the next century will be very different than that of the post-war era. and if we wanted it to work for the american people, we need to embrace new players on the global economic stage and make sure that they meet the standards of the system we created and that we have a strong say in any new standards. the worst possible outcome would be to step away from our leadership role and let others fill in behind us. making the case for global engagement is a responsibility we all share. we must make the choices necessary to ensure both the future of the international architecture we built and america's position in it. over the last year the obama administration has made significant progress advancing u.s. leadership in the global economy. we worked with congress to secure imf reform, trade promotion authority, and the reauthorization of the export/import bank. we reached a

i am confident that the imf will join the program.st september and we have already dispersed one 286ter of the program, up billion. it is up and running. the imf is fully aware of what is going on, and i hopefully can join, and the fact that they have a different forecasts, a different assessment of the situation, we can find ways to bridge that. hans: what more does greece need to do? klaus: they need to take measures to move to the target. when the third greek program was adopted at the head of state at government level, a month level -- a month later the details the key decisions were taken, likely primary budgets for 2018. how much to privatize, what kind of structural reforms to do. and system reform. we need to get there because in that sense the esm is exactly like the imf. -- that is where we see lax on the greek side, that it is to be fixed. hans: why the delay? klaus: because some of these things are not easy. reform is difficult under the best of circumstances. advanced reform is technically complex and politically very sen

he is not going to call another if he hasn'tcause learned anything, -- guy: the imf is being vigilantith its strategy thus far. we got two different stores surrounding greece. it is interesting to see how they are overlapping, the migration story. it is now underway in the islands. how do these two stories interact? how are they going? how does it feed back into the financial crisis? you've had more than one billion immigrants coming over to the greek islands over the past 15 months. it is a huge number. sending the regular immigrants back to turkey, this is a huge task. at the moment we have not had any balance -- any violent eruptions on a very rough scale. greek government official has said that is something that we will be expecting. we have to see how the greek authorities will deal with that. the islamic crises, it is not the easiest task that greece has to face, given the fact that maybe some people say that tsipras will use that to get some sort of debt relief. it is unclear at the moment. i would like to see how they go through this week. then we can have a more clear picture

meeting, and here's what he told us. >> the recipe always sounds pretty much the same, talk from the g20, imfing things like interest rates, fiscal policy, tax and spending, and structural policy, like reforming job markets, and that each country needs to use the right recipe of those three instruments to suit its own circumstances. i think attributing to a sense of nervousness at this year's meetings is a sense that all of these policies have been pretty much maxed out by a lot of different countries and that the scope to actually respond if one of those risks you mentioned does turn into a big crisis, that the scope of countries to respond to these policies is now more limited than it has been in a wild. >> now the oil market take center stage this weekend when the world's top oil-producing nations meet to discuss a possible output freeze. doubts are high as to whether the oil producers will actually managed to agree on such a deal. media reports suggested that russia and saudi arabia had already reached a deal, pushing oil prices to their highest level of the year, but iran has so far reje

and it doesn't have a seat in the imf and it doesn't have all the other things. i think if you may have heard me talk about norway in the sense that i said, if you were to do a blind test on integration, you would probably find that on many levels norway is more integrated. my point is that when you make these comparisons you need to be very careful because this is an occasion where size does matter, and malcolm was talking about these are three big countries and we have influence. i just want to set down a few really important things. one is, of course countries within europe relate to each other and work together. but until the united kingdom joined the eu in 1973, countries had two models. one was economic cooperation, and the other one was political integration. once we moved down the road of political integration, we could continue a pretense that you could be kind of integrated and not integrated, and it would still work. now mall com riffkin has made it quite clear that that pretense has come to an end for the euro because for the euro to work you require

what is happening with the imf meeting. all very much and focus. let me show you where the future story is going. very flat call this morning. not going to do much. we watched plenty of other assets. let me show you what is happening with dollar yen. there is an interesting report out of one of the japanese spikes. suggesting desk japanese banks suggesting -- japanese banks suggesting the earthquake may be the cause of not having to use the failed attack site -- failed tax hike next year. we are watching the dollar yen carefully. brent crude, we are watching what is happening this weekend oha.elhomme -- in del you've got the spat between schaeuble and the greeks. the imf in the mix. aussie dollar trading higher, unsurprising given the chinese data. here's juliette saly. saidtte: goldman sachs is to be embarking on its biggest cost-cutting push in years as a tries to whether a slump in trading and deal making. according to two people of knowledge, ceo is falling for the push which includes firing and curbs on travel and entertainment expenses. china'

i think the imf has a point. : the banking sector, i know you have had concerns about how the banking sector is performing. the business models that they have adopted. what that tells us more broadly about risk appetites and all of those metrics. chris: there is basically too much debt in europe. it is running about 5 trillion flat for six or seven years. having really grown in the prior 15. the problem is that is not growing. so you cannot grow profitability. the system has a lot of nonperforming loans in europe. that is undermining the profitability of the banking sector. so we sort of have stagnant banks. they cannot lend. the profitability model is broken, personally, for a whole host of western banks. anna: some of the banks are trading at 40 year lows. upis: you can pull deutsche bank, hsbc, spanish banks, a couple of u.k. banks, even american banks trading. i think the share price is telling us something. the stock market has a message about banks. the profitability model is not working anymore. manus: one

we have the imf fighting. e madame christine lagarde talking the big we need to rip up the entire package be put together and renegotiate the whole thing. that would honestly because a lot of concerns. we have an editorial piece this morning from alexis tsipras in the financial times, people may question that. but it is now down to the imf. i highlight that because it is one of the stories you look at the timeframe through june and july, the brexit, was happening in big greek payments due in that period as well, just wanting to maybe an interesting little summer. anna: no shortage of things for europe to worry about. the migrant crisis continues. does it look to you that the greek crisis is going to rear its head over the summer? gabriel: whether it will do so over the summer, we are having discussions over last year's deal, if it was enough. it certainly is causing a worry. and from what i know, it might play a role in our referendum here. everything is likely to. and long-term, it is still the case that it is