itself and in the work that the imf itself and in the work that the imf does. it's interesting, because when she took over at the imf, known as the lender of last resort, like the world bank, there were lots of questions about its relevance but with the eurozone debt crisis after the global financial crisis, the with the eurozone debt crisis after the globalfinancial crisis, the imf was right there in the middle of it all with angela merkel and the european central bank bailing out greece, portugal, ireland... and she‘s carved out a real position for herself. she‘s one of the ten most powerful women in the world. everyone knows who she is and i think she has tried... she has softened the image a bit of the imf. she may well go to the european central bank now, more than likely, which in some ways would be her cutting a new cloth because she‘d be the first woman to do that. she is not an commonest, which some say is a big deal, but i‘m sure she will prove her worth for sure —— economist. who will replace her at the imf? it's economist. who will repla

the imf is not completely wrong. they highlight the try factors -- trade factors and the other factors as well. the longevity of this expansion and all parties must come to an end up some extent. o some extent. yousef: you could argue that. another chart adds additional perspective to the story. here's tv for our clients. -- gtv for our clients. just maybe, the imf's new forecast is still optimistic. we have prepared it here with the bloomberg economics forecast and pulled it back all the way to the year 2000. do you think the imf is still too upbeat about where this economy is going? >> it's possible. they lowered their growth forecasts for trade quite significantly. by almost 0.9% to 2.5%. terms of the forecast, it's possible that if this trade war continues, lingers on, it affects business sentiment and consumer sentiment. the imf may be forced to bring its numbers down further. let's see whether the u.s. and china will agree when it comes to trade talks. a lot hinges on the trade talks. between the u.s. a

for more on europe's serge for lagarde's replacement at the imf head online to cnbc.com. you've got covering all this story at all angles as well as on our live tv coverage. also coming up in the show, economic growth in china slows to its worst race in almost 30 years, but some areas of the world's second largest economy still show signs of life we'll have more after the break. it's how we care for our patients- like job. his team at ctca treated his cancer and side effects. so job can stay strong for his family. cancer treatment centers of america. appointments available now. cancer treatment centers of america. ♪ applebee's all you can eat is back. now that's eatin' good in the neighborhood. ♪ did you know you can save money by using dish soap to clean grease on more than dishes? using multiple cleaners on grease can be expensive, and sometimes ineffective. for better value, tackle grease with dawn ultra. dawn is for more than just dishes. it provides 3x more grease cleaning power per drop, which cuts through tough kitchen messes, pre-treats laundry stains, and eve

perhaps the imf growth concerns are weighing on them. oil, continuing higher after we saw the stockpiles in the u.s. edging lower here. it is up about .6%. david: you don't see it here, we may talk about it today. beef imports in china are reaching a record after what has been happening with the african swine flu. a top story is the imf. lowering its global growth the of and the expected u.s./china trade talks. hays,g us now is kathleen our global economics and policy editor out of new york, and air china correspondent and coanchor, tom mackenzie in beijing. to the according sources, we hear lighthizer is headed to shanghai for head to head trade talks. what can we expect this time around? tom: they have been having phone calls, at least 2 sets of phone calls that have led up to the meeting we are expecting. face-to-face meeting in shanghai between monday and wednesday. from the u.s. side, it will be led by robert lighthizer. as you mentioned on the chinese side, the commerce minister, something of a hardliner when it comes to trade talk

>> the european countries have short list of five names as they search for the next imf chief. who do we have on this list? the former president of the euro group and also former dutch finance minister the current governor of the central bank of finland and he also served as european commissioner for the euro. the spanish finance minister, also the portuguese finance minister but head of the euro group and then finally chief executive of the world bank. when it comes to giogivi, it's a clear stumbling block. should not be older than 65, at the moment, she is that age. france, which is the country chairing the discussions among the 28 european countries is putting pressure on the imf to change those laws to allow for an older candidate but the imf board is reportedly against that idea but at the moment f you look at this on going conversations across the 28 european capitals, what we can see really is that they agree only on one thing and that is the fact that they want to see a european leading the imf. that has always been the case. it has always been the case that we have see

you might need a sabbatical before going into the imf after all that! yes, and what his family wants to do comes into it as well. george osborne is currently editor of the evening standard, which is a london daily evening paper, a free paper, and the indication was that he perhaps wanted to get back into politics under the new leadership of the conservative government. so it is interesting. many speculating that he would be looking for a new job ina that he would be looking for a new job in a cabinet. yes, and as you say, it is a local uk newspaper, and he is an advisor to blacklock, but he is an advisor to blacklock, but he has been out of the political view. the tory party has a lot of problems, many people thinking if there were a general election, they would potentially lose. perhaps he wa nts to would potentially lose. perhaps he wants to get away from that mess and into a larger, more international job. christine lagarde has been nominated to be the new chief of the european central bank, but that has not yet been confirmed. she will be the first

the imf has lowered its forecast for global growth to 3.3%, citing trade tension asa growth to 3.3%, citing trade tension as a key reason. analysts are encouraged that finally the us and china have sat down back at the negotiating table but saying shrinking the trade gap between worlds two biggest economies not going to be easy and it might even be impossible. starting to hurt the bottom line of us businesses. thank you forjoining us. earlier i asked deborah elms whether trumpet‘s make america great again approach make trade great again? it remains to be seen. that by pushing trade conflict he will get himself re—elected. it is the one issue he has cared about the mass and clearly he driving this home to the election, his mind. let's break down the trade conflict. one was a recent european union and basically he has raised tariffs on $4 billion worth of european goods. is this a wise move? the plan is to continue to escalate, in an unrelated area, aircraft. this is a long—running debate. they have been battling over aircraft, the europeans and americans, for 50 yea rs. european

whoever succeeds might have a tough time preserving her legacy at the imf. michelle fleury. the row over how to tax the tech giants who dominate the modern economy is set to take centre stage in france today. that is where finance ministers from the g7 group of leading economies are meeting, and the key question is whether the us can bridge its difference with france and uk. last week, president macron‘s government became the first in the world to pass a tax on their revenues. the biggest, such as google, amazon, facebook and apple, will have to pay 3% on some of their sales in france if they have global sales of over $840 million. across the channel, the uk also says it is planning to press ahead with a 2% tax on sales from april, but both countries have said they will ditch their tax if an international agreement can be reached. as you can see here, corporation tax rates vary across the g7. the aim of an agreement would be to get more tax out of companies who route their profits through low tax countries. some of the fiercest opposition is coming from the us, where trade

the two thousand nineteen the imf is predicting a a growth rae of one point 9%. and this decline it could accelerate in two thousanand twenenty especialllly if t the s trade war with h china contntin. has been trump who is vyingg for reelectition remains optimisticc and says that the rates could increase 25%. they said on the condition of the federal reserve agrees to lower its key interest rates something that so far has refused to dave. not everyone has benefitted from the economic boom that despite a low rate of unemployment many americans worked two jobs while nearly forty million live beneath the poverty line. certainlyy growing market for hw lolong known a as welll someoneo will know when it happens you and you bring it to us i know kate thank you much of a cat meetings all the business. great to see it. the other side of our studio wrapped up right go to the media wawatch james creed nowow i s sd one mark great to see you -- too started with the e. u. top jobs the new names to succeed among others to speak and your card. that's right so that there's a lot

the imf suggest that brexit could derail a projected rebound. the white house and congress reached a compromise that no one is happy with. boost spendingo levels for two years. defeatdemocrats president from next year and could settle the administration with a fight over the debt ceiling and 2021. sales of previously owned homes more than forecast last month. unlimited number of low to mid priced properties were straining demand. median sales prices rose to almost $286,000. the justice department has given robert mueller guidelines on what he can and can't help with tomorrow. he has been told to stick to the already released public report and is not supposed to discuss ongoing cases but some details of his work maybe covered by executive privilege. more than 2700 journalists and analysts, i'm courtney donohoe. this is bloomberg. let's get a check on global markets with abigail doolittle. abigail: taking a look at the s&p 500 in the u.s., up one quarter of 1%, optimism around earnings along with a potential debt deal. this is of course perhaps in

the imf has lowered its forecast for global growth to 3.3% — citing trade tensions as a key reason. ross denton, trade partner at baker mckenziejoins me now. good morning. so the trade figures will be out in the us later. what will be out in the us later. what will it tell us, do you think, about the trade relationship between us and countries? there is enormous amount of uncertainty in the global economy at the moment. as you have already said, the way in which trade works generally is shifting. relationships between the us and china are moving, breaking apart and going to other countries, so we have seen going to other countries, so we have seen a going to other countries, so we have seen a loss of what we call trade distortion, where people are breaking supply chains related to china are moving them to other places to avoid or try to get round the us tariffs on chinese imports. do we think this is a good thing or a bad thing? i think is universally seen as a bad thing? i think is universally seen as being a bad thing. you have to go back to the basics, where ta riffs to go back t

cracks in the iron ore rally, surging oil and the imf cutting its global growth forecast. highlights include canon, lg and advances for the japanese equipment maker after texas delivered better than forecast results. we have mitsubishi motors which will offer more clues on the health of the tech industry amid reports that nissan plans to cut more jobs globally. paul: thanks very much. let's chicken on the first word news. ritika: big tech faces more investigation with the u.s. justice department looking at whether companies are harming competition. the antitrust division will address concerns that consumers and businesses have expressed about search, social media and on slight -- online retails. the latest sign of official scrutiny by washington. facebook, amazon and google parent alphabet fell. suggesting policy missteps on trade talks and brexit could derail a projected rebound. the fund expects the world economy to expand 3.2% this year, slightly more next year. about 1/10 of a percent down from its forecast in april. that lowers expectations from what what already the

what should the imf to from here? david: it's great to be here in paris to celebrate 75 years of the imf. institutions of promoted growth and financial stability and cooperation toward that end. i think it will continue. where there are misgivings about multilateralism. i think there is a tremendous amount to be gained by cooperation. the developing world needs trade and investment in order to grow and boost living standards. they have the possibility of being an engine of growth to the global economy. it makes sense to find ways to get along and cooperate and continue to promote growth in trade. and it willa moment be a test for our new managing director, our membership will rise to the challenge. nejra: in the spirit of talking about the future of the imf and the managing director, should the search stay with european candidates? that has been tradition. should it be broadened out to emerging-market candidates or even someone from the united states? david: for the last couple of times there's been a selection, it's

many businesses have jumped onboard legacy at the imf. many businesses have jumped onboa rd the sustainability movement to shrink their carbon footprint, but some green alternatives can be more costly. in singapore, one microbrewery is teaming up with a local start—up that uses a local insect that is ready to do battle for the environment. monica miller sent this report looking at the future of food. the recipe used to make perfect beer is a mix of science and art. the brew master of one of singapore's the first micro distilleries spends hours mixing mould, hops, yeast and water. —— malt, the result is 500 kilos of spent rain from the brewing process. we had to pay to throw it away. but one person's trash is another person's treasure. about a year ago, a local start—up called insecta said they would take it off their hands defeat a local species. they would take it off their hands defeat a local specieslj they would take it off their hands defeat a local species. i was like, what is that? you are rearing black soldierflies? what i

hasglobe -- growth tracker 4% worse than the imf. if this is to be believed, where's your optimism coming from? to comet central banks to the rescue? >> i think the imf is correct. has betteronomy fundamentals, indicators. lately to be able to sustain the u.s. economy. low unemployment. despite the fact the rest of the world's may be growing a little slower, might be slowing down more. you can share the pessimism about the world economy. is robust and healthy, wise the fed looking at easing? -- why is the fed looking at easing? >> they are trying to be proactive rather than reactive. there are no signs of inflation. little.wer the rate a you can make a strong case either way. everyone expects a reduction in interest rates. if it does not happen, the market will react in a diverse way. even if it happens, it will be a short-term full a tilting problem and a good buying opportunity. >> and insurance cut. there has been a lot of talk about the fed going ahead with this. in the bloomberg, u.s. stocks are doing better than their global pe

imf has cut global growth forecasts again. across major indices, we are seeing them take a late higher. australia is up. the csi is up. hong kong is higher. all this comes down to trade. this is what the market is focusing on. robert lighthizer getting ready to go over to china for the sinceface-to-face talk may. west bank banking economists have moved up the call for the central bank to cut rates to october from november. adding, it's going to ease again in february. that's why we have seen the australian dollar tumbled. inr down again. nearly 4% this morning. is getting aazil green light to restart some of that capacity. it's a really big player. iron ore trading at $108 per ton. people were saying, we are going to hit 120 and beyond. i'm looking at where to go if you are nervous in terms of havens. this is off of a goldman sachs call. people looking for protection against risk off shocks should find the yen a cheaper option than gold. gold is that traditional haven. gold is becoming more expensive now. you can see this in t

the imf has lowered its forecast for global growth to 3.3%, citing trade tensions as a key reason. joining me now is thomas gift, who's a lecturer of political science at the univeristy college london. what are we expecting these trade numbers to tell us? early indicators from the us commerce department suggest we will see an increase in the trade deficit, overall, and that isa fairly the trade deficit, overall, and that is a fairly significant shift from what we saw in april. that is not the message president trump wants to be told. certainly not, he has made reducing the trade deficit a marquee pa rt of reducing the trade deficit a marquee part of his economic platform, he has banked on tariffs imposed on china, particularly reducing the trade deficit, so this is not good news for him. why is the trade deficit not shrinking, is it because the us is drawing in lots and lots of goods, but from different places? great question, and you are precisely right: the united states is imposing tariffs on china but what we see its underlying shifts in global value chains. instead of buying g

we will have a new head of the imf. i'm not sure if it's within your purview to decide who that's going to be. do you anticipate the next head of the imf will be as european? are understandings to theme that have led world bank always appointing an american and the imf always appointing a european. i'm on point in time, the record as having said it should be based on merit. merit-based, rather than because you belong to a particular region of the world. however, the individuals that have been appointed to lead the world bank, certainly to lead andthe european commission the european central bank, christine lagarde, and the names that are being discussed in the , all are veryf well qualified. they are impeccable choices. have so manyege to well-qualified individuals. , if ientioned before could choose an ideal situation, i would go more for merit-based regardless of regions or nationalities. i think we can sleep tight. if any of those names that are being talked about today are appointed head of the imf, we will be in go

the shadow chancellor has accused international bodies including the world bank and imf is not being fed to tackle climate change. he has been speaking at the labour party's inaugural international social forum this morning and has called for a shake—up of international and institutions, arguing countries in the global south of the world have been shut out of decisions about the economy for far too long. let's talk tojohn mcdonnell. good economy for far too long. let's talk to john mcdonnell. good afternoon, thanks for breaking away from the forum to speak to us. you are talking about a new international structure? slipping talking about a new international structure ? slipping away talking about a new international structure? slipping away these organisations? possibly replacing. there has been a debate going on now for the last 18 months to two years. gordon brown did an excellent speech last september in which he said, faced with climate change and the threat of trade wars, the power of multinationals over individual states, he expressed his view that may be the existing institu

the imf stress test is by no means a worst case scenario. they have released their analysis on the impact of a no-deal brexit on the economy. the bigger picture is we have the retail sales number and that's driving sterling higher euro is trading firmer, up about 0.10%. we're seeing greenback weakness versus the yen european markets are in the red this morning asian equities as well it's red across the board. the biggest mover to the down side is xetra dax, we talked about it numerous times on the show s.a.p. is down about 6% right at the bottom of the stoxx 600. the tech sector under pressure this morning as are other trade sensitive sectors as well. ftse 100 also down 0.6%. switching to u.s. futures, we had a weaker session for wall street yesterday and today it doesn't look like the picture will be that much different. we get philly fed later and more earnings one bank to watch out for is morgan stanley one big mover overnight post the close, after close, was netflix. netflix tanked almost 12% in extended trade after the streaming giant r

the news is he has declined to say if he is interested in heading the imf. this is bloomberg. ♪

i think if the imf and its members work together there will be ways to overcome those problems and the main point is that there is still a lot of growth potential in the world that comes from trade, trade in services, the development of new financial technologies, the lifting up of poor countries who can -- by acquiring technology and capital can grow faster and have rising living standards and provide an engine of growth for the global economy there's plenty of reason for everyone to pull together, to work together, and to find a way through. it will require some new approaches to cooperation and a deescalation of trade and technology tensions. >> talking about financial technology, i know you have done a lot of work on payment services, fintech. you have eventually done a lot of work on stable coin as well it seems to me that you're a little bit more open minded to the prospect of a stable coin and facebook's version of a stable coin, libra can you give us a bit more context there? >> we put out the bali fintech agenda last year at our annual meetings in indonesia. it made a simple p

she has been a great general director for the imf. i am deeply convinced that she will be a good president for the ecb. soccer teamhe u.s. won the women's world cup. it is a back-to-back triumph for team usa and a record fourth title. the team will fly back for its parade in new york city on wednesday. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus. thank you very much. annabelle droulers in hong kong. the new democracy party leader in greece will take over as prime minister today. that is after a landslide election victory, handing the former banker the mandate to tackle chronic woes after a decade-long plus financial crisis. maria joins us from athens. good to see you this morning. the victory. what does it mean for greece in reality for policy? what is the biggest issue that he will have to talk -- tackle? maria: creeks are waking up to this stunning political u-turn are waking up to this stunning political u-turn. t

angela merkel and other leaders sitting which is why mrs merkel has been saying that if you can run the imf you can run the ecb. we shall see. i would love to hear your take on this. it is quite interesting. despite the fact that the uk is leaving the eu, the language spoken at all meetings in the european —— union will be the english language, won't it? because that is the language. this article about the british council has found it has put a report out to show that the uptake of language now in options where children decide on their options for gcs thes, languages falling dramatically and sums reports are suggesting that parents are saying well, there is no need to learn another language now because we are moving out of the european union.” find that interesting. that comes on the back of language learning being less, ifind, of the back of language learning being less, i find, of a the back of language learning being less, ifind, ofa priority the back of language learning being less, ifind, of a priority here in the uk than in continental europe and germany where i went to school w

brought thethe imf, imf back from the brink of the dsk affair. she is a former top corporate baker and mckinsey. it seems like central banking is the only thing she has not done. party wise, from what she said and what the imf has advocated, she is very much in the mainstream of monetary policy. i do not see a lot of daylight between her and mario draghi. in some ways, her familiarity it with the fiscal and polarity -- and political players could be a benefit for shaping consensus for how this euro project most forward. much, ournk you so bloomberg opinion columnist. saxol with us, eleanor market strategist. central banks around the world , not coolg cash anymore. it was cool two years ago. how do you respond to that narrative? you don't get as much anymore by putting your money in cash at the moment. eleanor: at the moment, we are quite comfortable being overweight cash and fixed income what relative to equities. it is more than equity stories. it is the fact that we see that, yes, global/central banks moving to the forefront of easing is potent

again, she has led the imf well. we will see over time how we feel about her program and other things. and she has experience, she speaks well. but as an economist, i think you would like somebody who had been trained in monetary policy. anna: thanks for your thoughts. nielsenlsen -- erik stays with us. money managers are caught between assets. and bloomberg is live on your mobile device or dab digital radio. we will be covering the appointment of christine lagarde. this is bloomberg. ♪ anna: welcome back to the european open. 17 minutes until the start of equity trading. futures are pointing tentatively higher. tentatively higher this morning. u.s. futures are flat to negative. we will be without the u.s. later on today and tomorrow for independence day. let's get a business flash for you. deutsche bank is sounding out potential buyers for a wide range of unwanted assets. this as it lays the groundwork for its most dramatic overhaul in a recent history. it would be part of the german at lender's plan to cut unprof

we don't know if he is interested in the job of head of the imf, but he does leave the bank of england next year and there is speculation about what he does next. this article notes the fa ct does next. this article notes the fact that george osborne appointed mark carney. he had to really sort of woo him

so this is not good news for the world but ijust say to the imf. so this is not good news for the world but i just say that at this point china is feeling more confident that perhaps things have stabilised. we do expect more stimulus, some rate cuts and thank rate reserve cuts so they do not have to come up so that puts more money into the economy. and we expect more stimulus so i think after a bit more digestion may be positive signs in asia. after a bit more digestion may be positive signs in asialj after a bit more digestion may be positive signs in asia. i wonder where this leaves the trade dispute between the united states and china, doesn't mean it is more difficult for the chinese president to fight back against what he has seen from president trump because we know that globally the moves in the economy are having a huge impact. they are digesting this and they will look at what they've been able to achieve, they expected a fairly low gdp but they expected a fairly low gdp but the question is going into the rest of the year what happens. the

vonnie: hold that thought, i will play sound from the imf's chief economist about global growth. she spoke about why the imf reduced the global outlook. >> this is sluggishness is to summon stent -- is to some extent self-inflicted and it is an outcome of prolonged uncertainty on the trade front, escalating tensions on technology, the prolonged uncertainty with brexit, and these factors are weighing on growth. vonnie: when you hear that, obviously the imf is not the only organization saying this, do you think that that has relevance for your style of investing? >> i think the bond and equity markets have priced that to a certain extent. i think beyond the pause from the political uncertainty around brexit or trade issues, perhaps there are fundamental issues. it is disturbing to me that close to the peak of the economic cycle, we see a lot of banks trading at the stress levels. so the credit creation mechanism is actually not performing the way it would ordinarily perform at the peak of the cycle, that is a warning sign, weaker banks. secondly, the scope for government to stimula

when she came into the imf, it was not exactly an easy time either. of course, she acquitted herself very well in that position. i think coming in, what she will do is get to know the staff, build support. at the same time as others have said, insisting on the independence of the central bank. working with mario draghi to continue policy rather than striking out in a new direction. i think she is going to do terrific. paul: what is the first order of business for christine lagarde as head of the central bank? chris: i think to reassure, as mario draghi has done, that the ecb is committed to doing whatever it takes to meet the mandate of the bank, which of course is stable prices. dr also, it is becoming, as aghi sort of suggested, there is somersault ability for growth. there is the need not to chase inflation to low. i think she will do a good job of articulating that message. that is the first order of business. letting people know what needs to be done. things could those be european banks which are in a rough shape. how well-equipped is christine

or governing council, but also because they have very powerful and good tech know structures >> the imf vacancy is expected to be discussed in paris >> and it seems that it is the year of the women, isn't it? i'm joined by chief economist. walk us through your take on all of this. some of the top jobs globally now taken by women what do you think that women will add to those roles perhaps that we haven't seen from the men? >> i think that perhaps we should say that these jobs are taken by competent women not only women it is a testament to how efficient and diplomatic and skilled they have been one thing that impresses me is the ability to combine very technical work with political skills and communication. so i think that it is wonderful and i'm happy for them >> and what happens next in terms of the global growth scenario you've made several warnings in the past couple months about the u.s./china trade status will impact global growth long term we've had the conversations at the g-20, but what is your take today. >> so i have been as you say and i continue to be very, very worried abo

and of course that really is pretty precarious, so the imf was saying there are very significant risks that even that pick—up next year. significant risks that even that pick-up next year. got plans for the weekend? starting my annual leave! i am going somewhere cold! provides good for you, enjoy your holiday. thank you. the finals of the fortnite world cup are taking place in new york. andrew walker is going to be a player! a0 million players have attempted to qualify over ten weeks of online competition, but only 100 finalists have a shot at winning the $3 million top prize, the biggest ever for an e—sports event. 0ur cyber reporter joe tidy is there. for two years, fortnite's unique brand of dancing, shooting and looting has brought gamers together online. now it's time for the cream of the crop to meet in person for the first ever world cup. the prize pool is a record $30 million, or £24 million. the winner takes home $3 million and this trophy. some of the favourites are british, including 14—year—old kyle jackson from london. he's known online as mongraal. it's a lot mor

the bank of japan governor addresses the imf in washington. he says he is watching global developments closely. silicon valley chiefs head to the white house for talks that may lead to the easing of the sales blockade on huawei. shery: we will have more on that big tech meeting in washington and what this could mean for the huawei been later on bloomberg technology global link. first, that get you started with a quick check of how the markets closed the market session. a positive session for u.s. stocks. we saw the s&p 500 gain ground, up 3/10 of 1%. a couple of analysts calls, including one on apple, with morgan stanley boosting its price target. that actually made apple rally and the biggest winner on the nasdaq. micron finishing more than 3% higher after goldman sachs listed it to buy from neutral. we also have some positive news on the u.s.-china trade front. there could be talk about a potential deal in congress on raising the debt limit, that came after the market closed with president trump saying a deal had been reached. we will have m

she has been a great general director for the imf. and i'm deeply convinced that she will be a great president for the ecb. >> i am convinced that certain changes need to be made here, and christine lagarde, along with the board, she doesn't decide this on, along with the board, will set us on the right track here. perfecttine lagarde is ecbontinue in the role the had in previous years with mario draghi. attack --ally in the in the task of easing the economy. >> i don't think she's political. together, with her colleagues at the board, i'm sure she can do an amazing job to take the monetary policy of the euro zone to the next level. europet should get -- should get more incarnation. and christine lagarde sends a very good signal. anna: some thousand and christine lagarde's appointment at the ecb. still with us, peter. your thoughts on the ecb under christine lagarde. which policy tools remain open to be used to stimulate growth? peter: first of all, i would agree with most of the speakers. she has a tremendous amount of experience. sh

this would preserve the practice of picking a european as the imf managing director. influential blog linked to chinese state media said trade talks would go backwards again unless tariffs are lifted. the sides are talking by phone. the head of deutsche bank's investment bank is leaving. garth ritchie's departure announced days before an overhaul. the board will decide on a restructuring plan this weekend including sweeping job cuts. the cuts will probably go far beyond equities and interest rates derivatives trading. chris cline has died in a helicopter accident off the coast of the bahamas. six other people also died. he was known for reviving illinois mining industry, a founder of foresight energy. he was 60 years old. global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm courtney donohoe, this is bloomberg. guy: thank you, indeed. global markets with taylor riggs. markets, the s&p 500 and european markets. major equity indices falling. increase in volatility. slight. vix and the

lagarde moving from the imf to the ecb. bloomberg's maria tadeo is in brussels covering the story for us. is it a surprise that lagarde is going to be replacing draghi? maria: some will tell you it is a surprise, but it is not entirely unexpected. the french were pushing to get a frenchwoman to the european central bank. what is interesting is her background. she's not an economist by and she is not a central banker. but european leaders here will actually tell you they have that in her and confidence she has a track record at the imf where she praised mario draghi, said that he had taken the right measures at the height of the sovereign debt crisis, and there is continuity of that draghi legacy. as one official put it to me to gay, it is -- put it to me today, it is not about who christine lagarde is, it is what she is not. she is not a dove or a hawk. let's talk about another person moving into a senior position in brussels, ursula von der leyen. can she clearly confirmation process? lagarde looks like a lock. i'm not sur

we need to reform the rules and re-for -- and reform the imf quota. we need to design school policies which are coordinated because some of our economies have a large fiscal gap and we need to use it to invest more and create growth. some of us still have a high-level of deficit and they need to reduce that. >> i know you had a one-on-one with steve mnuchin. -- of the things they think one of the things the administration has said is they think the dollar is perhaps a little too strong. do you worry they will try to talk down the dollar? >> it's up to every nation to take its decisions as a nation. as far as europe is concerned, we are of the view that policy must remain in the hands of the central bank which sees an independent central bank. the ecb is independent and it's up to the central bank and only them to take the decisions related to monetary policy. this is the french position. this is the european position and it will stay that way. >> we are going negative and the market is already pricing in a rate cut but do you worry that could have ser

invoking the imf to help the british economy is stunning. you are saying and a time we are moving away from cooperation, that the likes of the british economy can only be helped by corporation and major moves within places like the eu, so the british economy would be dependent thanks to brexit on other central banks than the british central bank. mervyn: it is not a british issue. this is a question of challenges facing the global economy and especially the european economy. britain is still one of the major economies in europe. we may not in the future be in the european union, but we'll certainly be in europe. i think the u.k. is a stronger position is anyone else. our economy has grown as fast as the german economy, if not faster, since the days the u.k. voted to leave the european union. that is not the impression you would get from much of the media. what we need to do in understanding what is happening to the british economy is to realize this is reflecting movements in the wider world economy and not all down to brexit. guy: do you th

imf managing director christine lagarde is touted to be the head to hit the ecb -- to the ecb. levine of bny mellon and emily roland of john hancock are still with us. what can the next head of the ecb actually do to ignite growth? alicia: the ecb is really between a rock and a hard place. the christine lagarde candidacy is interesting. as we've been discussing over the break, she is really a political figure much more than an economist. much of europe's problems extend from the politics and the political economy. what does that mean to have different fiscal policies when you have one monetary policy and how that plays out politically? at first i was skeptical, but as i think about it, it may be that this is more of a finesse job, and is very political. bestld assume she has the economists that can help her with this. it is a little puzzling because she's not known as one of the leading economic minds out there. she's a political person. david: it is fascinating. is there a parallel here with jay powell? he's been on the fed for a while, but not a trained economist. absolutely.

she has done well at the imf. she was a lawyer before that. she is not a trained economist. we have a chairman of the fed that is also -- do we have any concerns she does not have a sound economics background, unlike mario draghi? lorenzo: that is always a concern, but in today's world of central banking, communication is probably the key aspect. certainly she has a very good skill in that regard. having said that, we have seen jay powell in the states and other people around the world. these days, communication skills might have a premium on economic experience. again, she needs to find a way to build up a strong economic team around her. david: one of the challenges she will have or whoever takes over the job will be what to do with monetary policy in the european union. we had mario draghi signal they are willing to cut further. there are reports from bloomberg that people at the ecb are saying not july or maybe september. i will put up a chart that shows where the market is. the purple line indicates that right now people think we are looking at 1.7 times attend basis po

imf wants over no—deal brexit. i think no—deal brexit will be a difficult and bumpy thing if it is to happen stop i think it is like playing a game of russian roulette. four times out of six we may be ok, it is the unexpected event cannot plan for and that is what should frighten people about a no—deal brexit. i don't think any sensible prime minister would choose it over a negotiated deal and that is the right way to warn about no—deal brexit. the imf and other forecasting organisations have such a poor track record, this will not really swing public opinion in any way. what i think the new government and prime minister has to do is in the chancellor that and the restock ofa the chancellor that and the restock of a special budget dash is put out a set of proposal. should there be no deal, there would be measures to reassure business and the country that we are as prepared as we possibly can be in that eventuality and theresa may and philip hammond never really did that but if europe and the business world se

mark carney wants to escape and go back to the imf. how unconventional is the moment for central bankers? wolfgang: it is unconventional. i believe they have run out of tools. they have marginal tools left. they might go back to qe but i do not think it will make much difference. 60% of then government bonds of their country, the ecb is owning 20% and it could get higher, but what good will it do? well let drive-up core inflation? i doubt it. by factors outside of the monetary sphere and the idea that policy can always do the job, i disagree. francine: even for the fed? wolfgang: the fed has more room for maneuver. francine: are they central banker to the world? wolfgang: they are, this is clear. that is the one still functioning economy we have, the united states. they will be testing the same limits. it is not just a european thing. we are in a global world of secular retrenchment. andreas: one of the surprising matters i think is the market is relatively relaxed in response to this increased politicization of the central banks. if y

part she has, quote, decided to temporarily relinquish responsibilities as managing director of the imf during the nomination period the current president's term ends october 31st. official appointment for lagarde is likely in the in the coming months the other point is that ursula van derleon, has got the european president's job, as well for all the tensions of the last couple of days at the european consul, some are asking about the german and french person in the top two jobs both of whom from center right political party backgrounds, all very pro-european union. this is a big win for european unity. you also don't have a hawk which is potential in the ecb role which, again, is important for markets. only other thing i'd say, it does have to be confirmed by the european parliament. all of these announcements are framed as if they're locked and loaded they probably are, but they haven't been confirmed yet >> i'll take the lagarde piece of this. it's somewhat surprising much she's a world leader coming int. she is by training and by background a lawyer, and has a front row seat and fi

shadow chancellorjohn mcdonnell has accused international bodies including the world bank and imf of not being fit to tackle climate change. he's been spaking at the labour party's inaugural international social forum this morning. mr mcdonnell has called for a shake—up of international economic institutions, arguing that countries in the global south have been shut out of decisions about the world's economy for too long. we wa nt we want to look at maybe a new body that will tackle this specific problem, but it does mean that the global south needs to be properly represented, there needs to be fair representation overall. i give the example, at the moment it seems as though there is a gentle mental agreement, if you could call it that, of always having european or american to head up bodies like the imf. i think that is unacceptable. bodies must be represented —— representative of the globe overall if we are going to tackle this threat of climate change. your ambition for international reform will require allies. it will also require you to win an election. i wonder, when you

designe imf quotas, and fiscal policies that are coordinated. some of our economies have a large fiscal gap, and they need to use it to invest more and create growth. some of us still have high levels of debt, and we need to reduce that. maria: probably a reference to germany and a reference to who's but with the imf, going to replace? ? christine lagarde -- he was going to replace christine lagarde? insistseveryone i on competence. meaning you have diplomatic skills, meaning you are able to handle complex, diverse institutions. the americans chair the worl d bank, and the europeans chair the imf. the tradition has been respected. maria: that is a yes? pierre: that is not a no. there is a procedure that is ongoing since christine lagarde, who has done a very good job, has resigned. we have until september 6 to nominate people, so let's not discuss too early. maria: commissioner, thank you so much nice to see you. manus, day two and we are waiting for the statement, but there is a lot happening here. nejra: thanks so much, maria. great to have yo

he worked at the imf in the 1990's. parts of southeastern california and nevada were hit with an earthquake measuring 6.4, with the tremor felt all the way from los angeles to las vegas. there was no report of damage. a.m.uake struck at 10:00 in the desert northeast of l.a. it was the strongest to hit the region in 20 years. the end of an era for one of the disrespectful publications out there. magazine "mad discontinuell selling in stores. global news, 24 hours a day on air and at to act twitter,powered by more than 2700 journalists and analysts in over 120 countries. a big story investors will be watching today. the indian budget, the first since the modi government's decisive reelection. asia get to our southeast economics team leader. the is the first budget for finance minister. what is she likely to deliver? be a veryoing to interesting afternoon. we are watching closely for the minister's budget speech. we expect her to focus on the growth outlook. sharply inhas grown the first half this year. consumption is quit

but has mark carney said about anything about working at the imf? is this speculation? could be speculation, maybe he is keeping his cards close to his chest, it will be a long shortlist, it is a pretty prestigiousjob. a long shortlist, it is a pretty prestigious job. if i was mark carney, i would want a sabbatical! stressful time. and what would the evening standard do without george osborne? i am sure that they will manage...! going through before we leave, a couple more tweets, including, this one, multiculturalism is not about gaining knowledge of best practices, it is something to feel proud of in the us, so why not have future yogis. that is, he is talking about the 4th yogis. that is, he is talking about the 11th ofjuly. yogis. that is, he is talking about the 4th ofjuly. a nice hanger stea k, the 4th ofjuly. a nice hanger steak, they say. no comment. loads of different things. i was married toa of different things. i was married to a south african, bless him, he used to put loads of gorgeous meat and all sorts on the barbecue. used to put loads of gorgeous meat

they basically plugged in an imf forecast from earlier this year. there was a bit of confusion about that. it does have a pretty bad impact on the public finances. the next 30 billion of borrowing per yearin the next 30 billion of borrowing per year in the short—term. the imf think that they plugged in that was not by any means the worst scenario for no deal out there. they have actually picked quite a moderate one, is actually a could be a lot worse. you don't plugging in. that gives us a segue to electric cars. the number of elected models said to triple by 2021. is this good news? i think it is. it sounds like good news. everyone is there will be a big shift to electric. they suggest that the car—makers are rightly getting there and there will be a lot more electric models for people to choose from. because there is a caveat there. we know that electric ca i’s caveat there. we know that electric ca rs have caveat there. we know that electric cars have a limited range. there are limited places to charge them. it is all very well the car—ma

a french finance minister, been at the imf for eight years, seems to understand how the world economy is going. ishink one of the big things this is probably a fairly seamless handover, understanding that the global economy is flowing and will probably follow on from what draghi said. the fact that she is not an economist, i don't think that is a big deal at all. -- anothered away good thing, obviously, it is a woman. i think it is a pretty good appointment and it could have been a lot worse. the markets i think will read it that way. this woman is very capable and will have to handle the politics very well. that is not something that economists have been able to do very well. joe: when you look at the euro area economy over the next several years, how much of its success will depend on good choice of monetary policy moves versus the politics required to cajole governments to be more aggressive with fiscal policy which a lot of people would say is the lever that really needs to be pulled at this point. danny: that is obviously the big issue and draghi expressed in his street -- in his

the imf adjusted its forecast for venezuela to a contracted 35%. unlike double 07, you only live once so here's a chance to imitate the world's most famous five. his classic aston martin is being sold next month with an expected price tag of $6 million. had 13 original gadgets, including retractable machine guns, a nail dispenser and rotating license plate for the u.k., france, and switzerland. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. that.thanks for let's get a quick check on how things are shaping up on asian markets. we've had new zealand trading for a over 30 minutes now and currently higher by just over .10%. as i mentioned, the bank of japan makes policy decisions in the next few hours. we're expecting no changes, despite inflation remaining far from the 2% target and with the trade war taking its toll on exports. instead, governor kuroda and his team are awaiting the federal reserve's expected rate cut later this week. kathleen