of the imf. genie: catherine norris-trent reporting there from that trial in paris. another trial for you now. two whistleblowers and an investigative reporter in the loosely scandal are back in court today after a week of thousands of documents exposed luxembourg's huge tax breaks from major international companies. -- in themen are original ruling, the judge recognized the defendant's undeniable contribution to greater transparency on tax matters, but they were found guilty, angering activists who are out again today. has "seriousit concerns" about new comments from donald trump on china. speaking in a tv interview sunday, the u.s. president-elect said he does not feel bound by one-china policy that considers taiwan to be part of china. doug: the day -- russia talkeder about improved relations, china has spoken out. >> we urge the new u.s. government and later to fully recognize the sensitivity of the taiwan issue. continuing to uphold the one china policy to avoid the broader picture of china

course, it is too late to the imf. -- to wait to the imf. mark: that big news has broken out of the french capital today. let's move to eastern europe. ukraine is going to nationalize its biggest lender, p jfk private bank. it is part of the wider initiative to speed the economic recovery. the financed by minister. thank you for joining us today. >> yes, hello. mark: can you give us the idea of the deposit outflows we have seen today? from private bank? more is actually not much 2 billion.ual we don't see a significant outflow. the decision of the government to nationalize the bank actually had a clear stabilizing effect for the depositors and clients of the banks. that is clear everywhere. just a decision in the banking sector. awaited toquite long basically show that the government and the state is changes.d for serious as you know there was a positive , a statement of support from presidentlso from the , who supports the government action. mark: can we talk about eurobonds? eurobonds are going to be converted into capital. does that mean

the imf has been at various times very hard, you know, the imf is a rigorous institution. i don't know. i'm trying to put this in the context of the eu, trying to put this in the context of the emerging markets. i just think that if it's a slap on the wrist and she can continue -- >> i think there's another context to put it into, which is faith in global institutions right now. in the global elite. >> the elite is very important. >> the imf, the world bank, you know, so many of these institutions, she came out telling british people that she does not support a brexit and then a brexit happened. and she sort of had to come back and say, well, we don't know the impact of that. there are a lot of questions right now. this idea of crony capitalism. >> but she's a globalist. in an era where we've become nationalists. >> she is. >> with the con notations of nationalism in the '30s. >> she's become a voice for free trade and open borders. the question is without a champion like that, and she was one, a very public and popular one, what will that mean? and does this hurt the cred

the imf is meeting this afternoon. the imf board to decide on her fate. they will probably let her continue. it's debilitating at a time when frankly, the global economy needs a calm figure at the helm of the world's largest multilateral financial organization. >> in fact, you've got brexit and the aftermath of that and whatever is going to happen as the uk and teresa may, the prime minister negotiated that ex-tri indication. there were a lot of big issues out there. >> that's still the greek crisis as now questions about currency turmoil. china is an issue people are watching nervously now. yes, christine lagarde earned respect on the international stage for her calm composure. the fact she pulled the imf together and really got the staff to rally around her after this damaging scandal that came before her. and she's basically managed to create a lot of consensus and strike a deal with member governments in the euro zone which is a nightmare to deal with. the reality is most of the board members, most want her to continue. but at the same time this is da

chieris imf christine lagarde -- imf chief christine lagarde issues of payout --

she will remain at her post at the imf. lagarde spoke about that movement and came after the executive board at the imf met late last night and determined they were going to back her. here is the managing director's response. >> i am not satisfy would it. but there's a point in time when one has to just stop, turn the page and move on and continue to work with those who have put their trust in me. so, i'm very happy to not appeal this decision and to focus all my attention, all my time, all my efforts, all my energy and inneimy enthusiasm to my head of the imf. >> she was disappointed with that verdict that came out of france earlier that day. widely seen, i can tell you from my reporting inside the imf as sort of politically motivated. it was an unusual circumstance. 12 parliament aryans had to decide on two different counts. one they called her out on negligence. no punishment seen as a way to appease people politically to get at this. but the imf did decide to back her. she will stay on as her role and they praised her l

there is something about imf and french politicians, but you can understand why the imf have done it, the trump presidency, they don't want to be looking for a new managing director right now. they don't want to be looking for a new managing director right nowm she regarded as somebody who does a good job? she is a good figure head for the imf, she is instantly recognisable and very, very quotable. she is great on media. all these things make her a good head for the imf, you might say the imf hasn't covered itself in glory over the last few years, but she is regarded as a safe pair of hands. it would have been a surprise if they had to get rid of her. a conviction isa had to get rid of her. a conviction is a conics even if there is no penalty. monopoly set-up a helpline to stop bust—ups at christmas time. we play it our home. do you have bust—ups? we play it our home. do you have bust-ups? it can cause real dos. do you play it? this is a pr stunt. it is open for two days. which two days? it opens on christmas eve and finishes on boxing day. but really it isjust a pr stunt, hasbro

the imf rallies around her. i have a great respect for her, she is a very bright and intelligent young lady. however to be found guilty of negligence when you are in charge of, all leading one of the last major financial organisations, that is quite an accusation. we have to be very careful here. it is almost a fifa moment. this is where they turn up fifa moment. this is where they turn up and say that they behave in the right way, they are clear and independent on how they operate and we do not tolerate any besmirching of our brand and how we behave. meaning previously at the imf was dominique strauss kahn. that did not help. they need to be seen to be operating clearly and fairly and is, i'm afraid, is that negligence is seen i'm afraid, is that negligence is seen to be deeper in the way that she operates than she needs to go. the china daily? 6.5% growth next year say chinese authorities. bang in line with their own targets. great news, isn't it? you get told them growth figures in advance and they are always

chieris imf christine lagarde -- imf chief christine lagarde issues of payout -- syrian forces continue making gains in eastern aleppo. the military claims that the rebels have lost nearly all of the territory they seized four years ago. a syrian military official says the operation is in its final phase. the fall of aleppo would be the worst rebel defeats in syria's in 2011.began here is more on the story. >> smoke rises above aleppo. syria's most populous city is on back in government hands. iranianan army with backed militias and airstrikes launched an offensive in september. one of the most fortified rebel areas fell on monday morning after an intense bombing campaign. onlye terrorists control 10% of the territory they used to control in eastern aleppo. the british-based watchdogs said 130,000 people have fled. 10,000 in the last before ours alone. >> thank on behalf of escaped. we were starving. i can't even move because of hunger. reporter: the fall of aleppo has been -- aleppo has been under siege since july. diplomatic efforts to end the conflict have repeatedly failed. >> russi

you know the imf inside out. i don't obviously could but my perception -- someone from the innocence runs the world bank and someone from your runs the imf. is that going to -- someone from europe runs the imac. -- imf to is that going to change? john: that is the perception that mohamed el-erian is raising. you have to remember why these choices were made. that theis principal countries to these ideas seriously and not view them as just some decoration that we will have a nice cooperative organization. if you move away from that, you got a be careful to make sure everybody remains engaged, and that can be a problem. if they weren't engaged, they wouldn't be effective. david: is that long overdue at this point? when those concerns were relevant, it was the aftermath of world war ii, for goodness sakes. a long time ago. hasn't the imf got a track record that people were taken seriously if it were a mexican, korean? john: i think so. the rebalancing of the quota shares within the fund and the world bank, the shift

there is no reaction from the imf the cell -- imf itself. she was convicted over a pay all asa payout during her time french finance minister nearly a decade ago. to talk more about the case and -- ict i'm joined by lagarde found guilty, but she was allowed to leave the country for the verdict had been reached. is that unusual. it can happen that some but he facing criminal charges may be allowed to leave the country, especially if she has an important role suggest the president of the imf. no risk this person will try to avoid the sentence that will be issued by the tribunal. >> theoretically she could have been sentenced to a year in jail. she could have been sentenced to a year of imprisonment. she did not get this sentence. she was found guilty but there was no sentence against her and she does not get any mention in her criminal record. >> is that because of her position as head of the imf? >> it's a consideration that the court of the justice of the republic, they took into account the work that was being carried out at the ministry at

far.hey forecast that so the imf has been spectacularly wrong. michael: the call for additional fiscal measures, like additional pension cuts, dealing with nonperforming loans, the euro group wants to open closed procedures for the removal of barriers for investment. will they have the political capital to be of tomatoes reforms? me tell you that this government has passed more changes based on the oecd recommendations than any previous government has ever to do it. some of the accommodations make no sense. they are not really progrowth. they are basically ideas that the imf has put forward because that is basically the dog pound. as we know, most of these have been recommended in other countries and have failed. two, there are more reforms that take place, but we have to be very careful. reforms that actually lead to growth, lead to prosperity, you inequalitymits the that happens all over the world. think that the government is going to do what is right for people. michael: you are a very well economist.l-known looking at the budget passed this

an imf tribunal has decided not to hand down a sentence to ms lagarde. the china daily reports on the country's gdp growth is projected to expand by 6.5% year on year in 2017. this is compared with 6.7% growth for earlier this year. singapore's business times writes about how the owners of small sports shops fear for their livelihoods, because big brand nike threatens to stop supplying them next year. it'll apparently help nike cut its own costs. these small business owners, they will go bust. if a feisty festive board game scrap is all too common in your house, monopoly has set up a telephone hotline to solve family disputes. and really, what's more important — to win mayfair or to play fair? that's in the metro.

is there a flaw in the fx reserves as a part of this relationship with the imf? amr: look, i will not talk about imf numbers, but prior to 2011, we were having a good year. figures, we were in very good shape. we are reaching like now a sort of, all we have reached is a soft curve. remember we have like a trade deficit, a current account deficit, and don't forget we have taken a big hit from the industry. this is something that will take place in a very good fashion. manus: let's talk about the economy. what is it the reality of what you have done is monumental with the currency and with drawing subsidies? what is the realistic growth model for 2017 for egypt? amr: we should expect this year something around 4% give or take. you are in a transition time, transition period between action that might take -- create some sort of, not the fastest way to go, but you need to see investment coming to the country. this is the most important issue. now we are seeing investment for equity. the next step is to see the real economy function at full steam. one of the hangovers

you comfortable with the idea that the imf is making state m e nts with the idea that the imf is making statements which are making a huge vertical role and in internal british debate? what right does the imfto british debate? what right does the imf to play that role? clearly embedded in the articles of the imf is our duty of analysing and maintaining as much as we can stability in the global economy. ultimately, there is one certainty from brexit, that we have voted to ta ke from brexit, that we have voted to take back control of our country. are you ready now to express some regret for some of the things, including false would pedal by the leave campaign... as far as the leave campaign... as far as the leave campaign... as far as the leave campaign there was one mistake, what factual mistake. the 350 million. it was on the poster. a very small factual mistake. £350 million a week will go to the nhs is a complete falsehood. why redirect my question? why not now that it is over, acknowledge that some things we re over, acknowledge that some things were said that were false and you reg

the future of the top of the imf? this: there is no question is a serious blow to her to cash to her, to the fund. -- to her, to the fund. she has not been sentenced to a prison term. the indications i was receiving going in was the executive board will continue to support her as long a she was able to continue doing her job. --long a she is not in and not in an orange jumpsuit -- a couple of comments from mohamed el-erian, who wrote on facebook she should remain as managing director of the imf, what it shouldn't be about that. here, this issue the third managing director to face legal issues. in his words, there is an urgent --d to modernize them modernize the director selection process. is there something wrong with process and is it to political? guest: that is a fair point. it does sound to me like it is a separate issue. the issue of whether the managing director of the imf should no longer be a european and the fund should widen the pool of candidates it considers and should finally have somebody from a major em

. >> if convicted, lagarde could be guilt for a year and the imf would have to go headhunting again. >> our correspondent's following proceedings in paris. what is the latest from the courthouse? >> the defense courthouse for christine lagarde just lost of the first round. they try to get these proceedings postponed until next year where we will see another trial in paris against the businessman bernard tapie himself and the circle of his political friends. but the court to deny the motion. now things will carry on here. we will see a mix of the political and the legal. this is a special court that consists of three professional judges and a 12th, so-called, jurors who are legislators or members of parliament as well. christine lagarde is adjudged by a very -- jury of her on peers. for her, politically, of course, the fallout could be larger than conviction because negligence politically, if it sticks to her, it might just be a reproach that could finish her career. >> what would it mean for her career if she is convicted? not whether or not she goes to prison, just being convicted?

with the imf is doing. you have to explain it in a global context. if you don't have a basis of forecasts, what are you doing? >> in 2017, was the biggest risk for the economy currently? mr. lipsky: there are number, but the obvious ones -- europe has to get its act together, institutionally and economically. china has got to make a success of its reforms. i think it is important to u.s. growth takes an upward turn in acceleration in the year to come. lipsky who was john heads of the kissinger center for global affairs at johns hopkins university. it's one of the last unfilled cabinet nomination. secretary of agriculture. why is it taking so long to choose a candidate? we explore. this is bloomberg. ♪ david: this is "bloomberg markets," i'm david gura. let's head over to abigail doolittle for her chart of the day. abigail: one of the big story is the fact that new home sales surged at the biggest pace since 2008, some real strength of their for new home sales. that could affect americans rates arees at ri

the imf board are meeting. could she lose herjob over this? she has been found guilty but not given any punishment and spirited criminal record as well. those are the key elements. the imf have supported her in so far and if you want to watch what comes from this meeting. yes, she has been found guilty, lawyer says they will appeal against that. as you say, she hasn't been given a sentence. she could have had a fine, 15,000 euros. she could have spent a year in jail. that hasn't happened and her lawyer has confirmed that she will not have a criminal record against her name. it is possible the imf could still maintain their support for her. thank you very much indeed. the headlines for you now on bbc news. thousands escape east aleppo and evacuations from the syrian city continued, including nearly 50 orphans who had been brought to safety after being trapped for months. the government says a series of strikes at crown post offices and ra i lwa ys of strikes at crown post offices and railways called ahead of christmas show contempt for ordinary

the imf lowering the bank -- deutsche bank getting a break from regulators as the imf lowers the bank's capital goals. tesla is focusing on a new project for solar technology. and in today's could take -- quicktakes, we look at puerto ofo as a tries to get out its hole of $70 billion. deutsche bank will have to go over a lower capital hurdle. the imf says it will be said at 9.1% as opposed to the current requirements of 10.76%. will startanasonic making solar cells and modules buffalo, new york. panasonic will invest more than one quarter billion dollars in the project. the companies are already jointly creating a lithium-ion gig-factory. boostabi is trying to trading volume and attract foreign investors. adx, as the local exchange is known, has been meeting with the united arab emirates. imf managing director is calling on europe to clean up its banks. he talked to bloomberg television about the reason they are not living up to their potential. region for thel advanced economies has been week business investment. that is for all advanced economies. thate: he went on to say they do not

i don't want us to be governed by institutions like the imf and the world bank. i'm sure they're good for employment of phd's but as far as i'm concerned there no good area i'm sick of 1000 economists at the federal reserve board, they've done more harm than good in my public opinion. i'm sick of devils in that crowd was done more harm than good and i loved brexit, the whole european union. i call it magna carta 2.0. getting rid of that which has a wonderful legacy, i love britain. i love what they just did. the magna carta , representative democracy, that equals growth, that's the way i see it and the eu, i put them right in there with the imf and the world bank and all that. so i look for free trade that i want free trade to be governed properly in accordance with american interests anddemocracy . >> what do you think of the uk leaving the european union ? >> that brexit. i'm in favor of it. yes sir. >> i came to work at wall street under the chesney martin who as you recall replaced truman's poodle marriner eccles. [inaudible] he won if my memory serves area w

have a and heads of imf history of bad press. what is the risk, the jeopardy of the imf? reporter: all along, christine lagarde has denied any wrongdoing. she has denied the charges. law she is presumed innocent until the verdicts. peaking onshe was national television and said she was confident and determined heading into court. the negligence charge was not all doneal and we have it negligence at some point in our life. the imf board is supporting her. in february she was named for a second term as the head of the i'm a -- i -- imf. even when she was named as the head of the imf in june 2011, the initial investigation in the affair had already begun. anchor: thank you very much. joining us from paris. michael is still with us, we want to talk about stocks right now. i'm looking at the u.s. features, many of these indices are moving in the same direction, some are not. the oil lanes doing a little bit better. overnight moving 4.9%. is this something you start moving trade round? michael: something we look at for trading. the sector that gets the most influence, u.s. high

what right does the imf have to play that sort of role? well, clearly embedded in the articles of the imf is our duty of analysing and maintaining as much as we can stability in the global economy. ultimately, there is one certainty from brexit, total certainty, that we have voted to take back control of our country. are you ready now to express some regret for some of the things, including, frankly, falsehoods that were pedalled by the leave campaign during the campaign? as far as the leave campaign was concerned, there was one mistake that was made. what was that? there was a factual mistake. what was that? that was the 350 million. it was on the poster. a very small factual mistake. the message to the people, if you vote brexit, £350 million a week will go to the nhs and that is a complete falsehood. yeah, and if you vote brexit, according to the chancellor, each family will lose 4,500 quid a year so... why redirect my question? why not now that it is over, acknowledge that some things were said that were false, that were lies, and you

the imf board said they will meet shortly and haven't made any decisions yet. she hasn't decided to appeal either. person i spoke with a couple hours ago here in paris she did not attend. the lawyer told me that he was actually be 80% satisfied with the verdict given that she has no jail time and no penalty in that case. it is not clear yet what thismeans for her job at the imf, and if she will appeal. were: the events that contested here occurred more than 10 years ago. why did it take so long to bring it to trial? caroline: yes, in fact, this is also one of the reasons that the judge said she was not negligent in seeking the initial arbitration. the reason for that is that she was trying to do something in a case that dates back to 1993, was sold to adidas the french state and this is when he thought he was accusing a year later of defrauding him because the stake was sold a year later for more than double the amount. case startedse -- 15 years ago. this is one of the reasons that in 2007 christine lagarde sato the arbitration. -- sought the arbitration. the

the imf has estimated inflation will surpass 2000% next year. that inflation means the largest note is worth just teed up u.s. sent -- just two u.s. cents. the largest of the new bills will be just under five euros. the rate of inflation is staggering. we will be back with you for in it -- with you in a few minutes for more. stay witqéa1ú@ñ 12/05/16 12/05/16 [captioning made possible by democracy now!] amy: from pacifica, this is democracy now! >> we are slowly getting there, winning this thing, but there are going to be a few battles we have to go through. amy: historic win for the standing rock sioux in north dakota and the environment. the army corps of engineers has denied a permit for the dakota access pipeline to drill below the missouri river. officially faulting instruction. but the company behind the pipeline has

are not enough for the imf to get involved. the spanish finance minister also said the statement on greece was not really conclusive. what was concluded last night was to waive the coupon penalty of around 200 million euros. these are short-term menus -- these are short-term moves. the second bailout review was supposed to be finished by now, but there are still a couple of sticking points, especially on labor reform. and greece first needs to finish this second bailout review in order for the imf to get involved and then to reach the next step, which is to get greece into quantitative easing. mark: bloomberg's caroline connan. jacques is next. this is bloomberg. ♪ ♪ julie: you are watching bloomberg. i am julie hyman in for vonnie quinn. mark: i am mark barton. the chief executive of lego is stepping down. julie: german factory orders rose 5% in october. is this a sign that the european economy could pick up into the end of the year? mark: and a historical look at the price of oil. ♪ julie: defense secretary ash carter s

the imf board meeting. did she lose herjob over this, because she has been found guilty but not given and punishment and spirit a criminal record as well? those are the key elements. the imf have supported her so far and everyone will watch what comes out of this meeting to see what a decision diptych. she has been found guilty, her lawyer says they will appeal and, as you say, she has not been given a sentence. she could've had afine, been given a sentence. she could've had a fine, 15,000 euros, she could have spent a year in jail, but that hasn't happened and her lawyer has confirmed that she won't have a criminal record against her name. it is possible the imf could maintain support for her. mps holding an inquiry into combating doping in sport have been hearing from a number of key witnesses today. representatives from team sky, british cycling and the world anti—doping agency are appearing before the culture select committee at westminster. 0ur correspondent richard conway has been watching the heari

our correspondent gary o‘donoghue is at the imf headquarters in washington. tell us more about what has happened and the response to it? the imf board we understand is meeting around now, it‘s a scheduled meeting, they are meant to be discussing the finances of suriname but clearly the major sheamus' theme —— the major issue on the agenda will be christine lagarde. —— the major issue on the agenda will be christine lagardelj —— the major issue on the agenda will be christine lagarde. i think the fact that she has escaped any particular punishment, either a jail sentence which was an option or a substantial fine, we‘ll help them if they want to hang onto power which they want to hang onto power which they clearly do. bear in mind, she was not reappointed to a second term —— she was reappointed to a second term just earlier this year. she is due to be here until 2021. we may getan on due to be here until 2021. we may get an on camera statement later on but i‘m expecting some supportive words, particularly now that the french government its

she has enhanced the standing of the imf. board did the absolutely right thing in retaining her as the leader of the imf. the boardot happened would have found itself once again stuck with a futile and antiquated selection process. transparent, it is not merit-based. it includes backdoor deals and elements of national prestige. that undermines the credibility of the institution. absolutely right in keeping christine lagarde. but let's move forward in modernizing the selection process. david: they have the right person, but it's almost by accident. when they started they said we have to have a european. reasons that have nothing to do with whether that will be the best person to run it. it was by accident. is there any reason to believe there would be reform in the way it is governed? u.s. comes down to the because the u.s. controls the world bank president and the europeans coming together and saying for the sake of these institutions and their legitimacy and credibility with got to give up an entitlement that is no longer wa

atyou were a chief economist chase and a senior official at imf. they have been taking down estimates of global growth consistently. are we going to see a change in that given the election of trump or have growth in europe that you talk about? mr. lipsky: let's hope. the imf forecast is actually a bit better next year on the basis of things like the banks getting worked out in other aspects. economyal, the advanced is moving along at essentially a more or less steady pace. what is notable, since the great recession, since 2008 and 2009 the growth in the advanced economies has persistently been well below the 30 year average since below that -- for that period. how to spurblem is growth. jonathan: there has been a flashing light in the background over the last decade, it is global trade stalling and now we hear increasingly a lot more protectionist rhetoric coming out of campaign trails across the world. does that concern you? mr. lipsky: of course it does. since world war ii, growth in international trade has outstripped growth in gdp. it has been

until then, her job at the imf is not on the line. the imf ordered has been supporting her all along. she was named for a second term of five years at the head of the imf a few months ago and in june 2011, she was named the first time to read place -- replaced dominic. the arbitration case had already been opened. the case, they expect, to 2007, when she was finance minister under president nicolas sarkozy. she had accused the french state she sawuding him when his stake in the german sports brand adidas in 1993. it ended up being sold a year later for double the money he was paid. is accused ofrde negligence in arbitration case and that resulted in paying him more than 400 million euros in compensation, including interest . christine lagarde has denied wrongdoing all along. she said last night on television that negligence is actually a non-intentional charge and we are all negligent at some point in our lives. if she said she was confident and determined heading into court today, and she has received no orders of president nicolas s

it will be difficult to get the greece needsand the imf on board in order to get back into quantitive easing across the eurozone finance issue to bent this resolved as soon as possible so they can move on to other issues , such as the aftermath of the italian referendum and brexit. manus: -- matt: i am wondering what you expect to hear out of brussels concerning brexit? it is going to be the first on the record briefing by chief ofbonnier, the the commission for brexit touring europe over the next -- last two months since he took office on october 1, traveling the8 european capitals, sting states by january. we could hear more on the format of the brexit negotiations, that no details on the negotiations before article 50 is triggered in march. once this happens, theresa may will still be part of the eu council, but the 27 will be allowed to meet without pegida to discuss only brexit. manus: thank you very much. part of the cio team, simon, when i look at europe, history teaches me to be more careful going into 2017. another roller coaster year for volatility. of insuring myself agains

the imf says it still has full confidence in her. >> alibaba shines a light on the dark world of counterfeiters in an attempt to drive fake goods off of its site. >> this is the second hour of "daybreak asia" live from bloomberg's u.s. and asian headquarters. >> it is just the past 7:00 p.m. here in new york. in asia, we are seeing green across the board, australia and south korea up .3%, new zealand .25%. geopolitically, switzerland, berlin, as well as turkey. >> let's get more on the market open. let's get started with the turkish lira, two day chart here. we are pushing roughly speaking, three point 53, so just about flat. japan, the nikkei 225, moved down yesterday, collect flat. 19,367, so this march to 20,000 for the nikkei 225. a lot of what will happen today will revolve around when we get to the boj. yes, we will get the decision midday in tokyo, lunchtime in fact, but the focus will be what conference the press when it comes to bond yields. have a look at south korea. there we go. a third of 1% better. a dropat where we are, in bond yields, treasuries on the way of, higher demand for

-- lagarde: we at the imf >> even the french people. ms. lagarde: we certainly view france as a country that needs to continue seriously in depth reforms of its economy. is elected, comes next may, will have to tackle head on the need for structural hasrms, the labor market begun reform but it needs to be faster and deeper. -- >>project markets have begun to reform a little bit. we need a bit more than that. it has to be a bit of this accommodating monetary policy by the ecb, which presumably will continue for a while. the price ofit has to be a bit s accommodating monetary policy by oil is still low, around 50. the euro is 105, 106 to the dollar. it's not bad when you are an exporting country and you buy oil at a reasonably low price per barrel. oil isthe whole scenery, the we landscape should be really favorable to build structural reforms, and admitted use of collect -- can only be used appropriately to support the structural reforms. it cannot be an invitation to increase public spending. there is plenty of public spending in france at

she became the first woman to lead the washington-based imf in 2011. she's currently serving her second term. the imf will open a board meeting to discuss its response to the latest developments. lagarde's defense council is reportedly considering filing an appeal. >>> now let's check on markets. tokyo stock prices opened slightly lower on concerns over geopolitical risks but the benchmark nikkei is moving in a narrow range ahead of a bank of japan policy decision. take a look at the nikkei right now. it is trading just ever so slightly in the positive. basically flat at 19,395. energy-related and financials are dragging down the index. major exporters are also lower on the stronger yen. later on tuesday, the bank of japan will wrap up its policy meeting. many analysts are expecting no change in its monetary easing. the focus will be what the statement says about recent moves in currencies and bond yields. take a look at couraurrenciecur. the dollar briefly fell below 117 yen but has recovered a bit of ground at 117.3. traders are buying safe haven ass

the verdict in imf chief christine lagarde decades-old negligence case will be decided today. she denies any wrongdoing. connan joinsoline us now outside the court of justice in paris. caroline, how likely is it that christine lagarde is found guilty? it is notso, impossible, but it does seem unlikely. last week, we had the french prosecutor who called for the charges against christine lagarde to be dismissed. he said the charges were quite weak, and that she was accused of things that did not relate to criminal law, but to political choices. the sitting judges of this court are not obliged to follow the prosecutors emendation. it happened in the past with the same a prosecutor jean-claude marin had called for the charges of corruption against jeff she chirac to becque dismissed. expected at 3:00 p.m. french time. guy: what have we learned over the last few days? caroline: christine lagarde has faced very aggressive questioning over the past week. she was present at the court every single day. one weakness on wednesday was especially harsh against her. be the chiefed to of the

john micklethwait will sit down with imf managing director christine lagarde. it's a wide-ranging interview on the global economy. 1:00 eastern new york time. ♪ vonnie: it is noon in new york, 5:00 in london, 1:00 in hong kong. david: i'm david gura. welcome to "bloomberg markets." we are covering stories from washington to london to beijing. a mixed picture for the u.s. jobs report. 170,000 jobs added in november. wages unexpectedly decline in, so what does that mean for the fed and the markets? donald trump's team continues to make with goldman sachs and gary cohen as he plans to move from wall street to washington. -- an interview with the we are halfway into the trading day on this job's day. abigail doolittle is here with the latest. >> we are looking at largely unchanged markets. the dow is slightly lower. the s&p and nasdaq are up slightly. tired trading with these unchanged percentages, telling us to

itsformer imf 2 is urging big banks to clean up. it says they cannot lend aggressively when their balance sheets are clocked and are laboring under heavy fines. he says the real problem is how to boost growth and an advanced economy. >> europe has to get its act together, institutionally and economically. china has to make a success of its reforms. it is important that u.s. growth takes an upward turn and acceleration in the year to come. >> israel has raised its growth forecast this year and next, while keeping rates a record low. the central banks as the economy 2 quarters of.5%, butter expected growth, better from the production of 2.1%. east, under two hours away from the opening of the emirates market, dubai and abu dhabi. this is how the picture fit across the board in the trading day. saudi arabia rallies off the back of the stronger budget announcement. we are watching what is happening in egypt and israel. finally a quick check of the markets in asia. next across the board -- mixed across the board as trade volume comes onl

the imf board has been supporting her. she was even reelected for a second term as head of the imf earlier this year. and she has denied any wrongdoing all along. so she is not going to lose her job until of course found guilty , if she was found guilty. she could face up to one year in jail and a 15,000-euro fine. all the lawyers we've been talking to have said this is very unlikely. francine: thank you so much. "bloomberg surveillance" continues. tom keene joins me out of new york. we will be talking to oxford university's george magnus. we will also be talking fx with jane foley. this is bloomberg. ♪ francine: pushing oil to $60. saudi arabia signals deeper cuts as oil seals its first output cut deal in years. italy's primary designate and starts building his team. is renzi's return on the horizon? trump considers tillerson. the fed preps for a hike. the president-elect considers exxon mobil's ceo for secretary of state. this is "bloomberg surveillance ." i'm francine lacqua in london with tom keene in new york. we ha

she relaced him at the imf. does she stay at the imf? stuart: it taints the imf which is a huge financial institution around the world. adam: they have had deal wisconsin greece and italy. here is an example of one of the he let running the world getting slapped. stuart: nintendo, their super mario run game is suppose to go on the iphone. by the am not going very well. and nintendo is down. reporter: it's down again, extending its five days of losses. while it has been purchased on the app store for am and moved to the top spot. the reviews are lukewarm at best. 2.5 stars out of 5 stars. there is a look at the game. but the big picture is it's not going to generate the revenue. the clincher, after the third level, you will have to pay $10 to continue on the game. nobody likes that. on pokemon go you were paying on small purchases along the way. but it will pale in comparison to pokemon go. stuart: the electoral college votes today in the 11:00 hour one electoral college member says despite all the hates mail and threats he will still cas

christine lagarde: we at the imf -- >> speaking of the french people. [laughter] certainlylagarde: we view france that needs to continue seriously in the reforms of its economy. and whoever is elected comes next may will have to tackle head-on the need for structural .eforms the labor market has begun reform. product markets have begun. ok, we need a bit more than that. the economy needs more than that. and it has the benefit of this accommodating monetary policy, which presumably is going to continue for a while. around 50.te -- theeuro is one of 5,106 to dollar. and you buy oil at a reasonably low price or barrel. the whole scenery, the whole landscape should be really favorable to those structural reforms. space,ed use of physical -- fiscal space can only be used appropriately to support these structural reform. it cannot be an invitation to just extend of expending. it means to be reorganizing and reshaped. showed franÇois conversing with margaret thatcher. is he a big enough personality to be the margaret after of france? lagarde: what i know of i

our editor and chief sits down with imf managing director christine lagarde. at 1:00anging interview p.m. eastern, 6:00 p.m. london time, today on bloomberg andvision, radio, bloomberg.com. still ahead, italy's turn to keep investors on edge. in rome for more on matteo renzi's referendum. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn in new york. nejra: from london, i am nejra cehic. vonnie: a look at some of the biggest business stories in the news. recalling 680 thousand cars most in north america. there are potential seatbelt problems in some versions of the ford fusion and the lincoln mpz. ande have been 2 accidents 2 injuries linked to the problems. mercedes-benz on the verge of becoming the best selling luxury car brand in the u.s. sales of these sport-utility vehicle more than tripled. luxury car in the u.s. for the last years. goldman sachs for lending guidelines according to those familiar with the matter. the review could tie to a deal that has been arrange for the $4 billion buyout of ufc ultimate fighting championshi

take a step back, a low-level employee at the imf, how did he come to become at the epicenter of that bad in venezuela? ethan: he was, he had come here as a young graduate to study english and expand has arises from venezuela. and he came in 2000. and he started working at he met a guy at a party became, an israeli guy, who went to work for a consulting firm that was wasd by big bank that worried money comment through a bank they wanted to buy in panama had uranium money which would violate u.s. sanctions against iran. from there, he became a freelancer and kind of had a knack of looking at to these things. where did his business start to prosper? who get from contracts? ethan: what happened, he had been an intern after the oil company before coming to america and when this guy called him and said we're looking into whether the company is involved in uranium money through panama, he called a friend of his and it all started for open to all. a whole bunch of documents and he worked the story. it was part out of patriotism, he was not making money. ultimately, he realized that u.s. agen

next, we hear from the former imf deputy director and now a distinguished scholar at the institute. this is bloomberg. ♪ ♪ scarlet: "what'd you miss?" more than eight years after the financial crisis, european banks are still struggling. strengthening the regions banks is not a challenge for the fainthearted. earlier today, john lipsky discusses what it will take a spur economic growth. john lipsky: this is been one of the key reasons why growth in the european economy has been sluggish. the balance sheets of the banks, the bank account for 80% of the current flow in the eurozone, when they are clogged with bad assets and you have overhang of the large fines for things like the one we were just talking about, that is not leave them in a position to be aggressive about lending and helping to spur growth. >> sometimes they are out of your control and jurisdiction. for the european monetary policy makers, the regulators, is this what they can pull? john lipsky: the ecb has been pulling every lever they ca think of. but not total success. what is necessary is with what they are doin

imf shift despite her can -- convictions. >> welcome to bloomberg daybreak europe. our flagship morning show from the city of london, i am manus cranny. anna: welcome. a look at the futures to see where we are expected to open. the asian equities section fairly weak. geopolitical concerns at the heart of things. the assassination of the russian passenger -- ambassador to turkey. chinese seizing and returning a u.s. naval drum, still putting geopolitical politics at the heart of things at the end of the year. manus: the counterbalance to that is the commentary from janet yellen talking about the strongest job market for graduates in a decade. upgrading the review of the economy by one step. how does that translate politics versus economics? politics is there with initial reaction in the yen and bond market. viewers whor our tuned in earlier. i was talking specifically about the attack in the turkey with the russian ambassador being attacked -- assassinated last night. forget, aleppo some of those were the comments about -- out of turkey. continuing ton move a little

right now we are the fifth-largest country among investor countries according to the imf. some of the ones below us are things like hong kong and singapore which are not , comparable anyway. our 30 year fiscal gap is 1.7% of gdp. if we reduce the annual budget deficit by 1.7% of gdp if we did that with tax increases, and you don't have to, but if you did, our taxes would be the 6th largest out of the he 35th advanced economies that the imf looks at. not to say that's not going to be a meaningful change in tax burdens, but it is simply not true that we can't have social security and medicare. >> look, i think what concerns me is i don't think we do this on the spending side or all on , the tax side. i think it will take both. i think everybody knows that. what concerns me is that we don't want to have a process that allows one of two really bad outcomes. you can have low taxes and high spending, that is a bad outcome. and you can have the opposite. the trouble is we need to match our spending and our taxes. what the budget process is about is saying to people, if we want to