you are previously an economist with the imf. -- previously an economist with the imf. —— let's go now. lot of people will not be happy the imf is coming in here again. good evening. good evening to you, as you may be aware, a lot of people will not be happy that the imf is coming in again to help argentina. some bad memories of 2001, particularly. yes, indeed. a long history between argentina and the imf which is always difficult times for the country. what is the medicine likely to be this time? so, this time around, argentina is entering, entered 2018 with a large fiscal deficit that was financed with a lot of international borrowing. and the president wanted to reduce this deficit slowly, with market support. but this market support wasn't there are around march or so and that is when they had to seek some imf support, which initially made markets more confident. but as the situation in the global economy gets more difficult and investor confidence wea ke ns a difficult and investor confidence weakens a bit, argentina needs more of the imf money that was agreed upfront. the initial

— many have bad memories of past imf interventions in earlier crises. lebo diseko reports. this is an announcement that argentina's president probably didn't want to make, explaining that he was asking for the early release of a $50 billion imf loan. translation: want to announce that we have agreed with the imf to advance all of the necessary funds to guarantee compliance with next year's financial programme. last week there were new expressions, highlighting a lack of confidence in the markets, especially concerning our capacity to obtain funding for 2019. argentina's economy has been struggling. the peso has lost more than 40% of its value against the us dollar this year. attempts to control spiralling inflation have led to the highest interest rates in the world. it's not the only emerging market to suffer currency devaluation recently, but its situation is a particular worry. if president macri thought his announcement would help steady the markets, initial reactions suggest he was wrong. the peso dropped at a record low against dollar and there ar

then he is off to washington where he will try to secure a deal with the imf. on wednesday the president said the imf had agreed with bringing forward the payment of its $50 billion aid package to the country, but actually that deal had not been finalised. and now mr dujovne must get that done. on thursday, there were new signs of how markets are dissatisfied with the government's current handling of the problem. just as the central bank raised interest rates to 60%. the argentinian peso fell by almost 20% in value injust argentinian peso fell by almost 20% in value in just one day. the government is doubling down on its pledge to reform the economy, but right now markets are running out of time and patience. daniel gallas there. now let's brief you on some other business stories. uk home improvement chain homebase faces a make—or—break vote on its future later. it has proposed closing 42 stores and cutting rents on others as part of a rescue plan. but some landlords plan to vote against the deal. hilco capital, which bought the chain for £1 this summer to

many have bad memories of past imf interventions in earlier crises. lebo diseko reports. this is an announcement that argentina's president probably didn't want to make, explaining that he was asking for the early release of a $50 billion imf loan. translation: want to announce that we have agreed with the imf to advance all of the necessary funds to guarantee compliance with next year's financial programme. last week there were new expressions, highlighting a lack of confidence in the markets, especially concerning our capacity to obtain funding for 2019. argentina's economy has been struggling. the peso has lost more than 40% of its value against the us dollar this year. attempts to control spiralling inflation have led to the highest interest rates in the world. it's not the only emerging market to suffer currency devaluation recently, but its situation is a particular worry. if president macri thought his announcement would help steady the markets, initial reactions suggest he was wrong. the peso dropped at a record low against dollar and there ar

the imf has released a statement amid the argentina crisis saying the imf supports argentina and that it is confident it can overcome its fiscal misdeeds, will meet imf chief the treasury secretary of argentina next tuesday for loan talks. we had heard the president asking the imf to speed up disbursement's from its credit lines. we see back in june it had received loans. the peso gaining ground after falling to a record low. more coming up. this is "bloomberg." ♪ vonnie: live from new york, i'm vonnie quinn. shery: and i'm shery anh. this is bloomberg markets. mixed on thestocks final trading day of the month, the dow, s&p 500 and the nasdaq setting records. joining us now is michael could gino. we have been talking about the stocks, tech stocks. how much more room is there to run? michael: we're in a sweet spot data,trong economic economic rates are rising gradually but not too fast. strong and gdpis was revised up and indications are we are going to continue to have that. there is a lot of good indications that there is a solid foundation for stock prices which would allow them t

default fears return, as argentina tells the imf to speed up payment of a $50 billion loan, sending the peso to a new record low. and on the markets: asian stocks rise after more record highs for the s&p and nasdaq, as us economic growth is revised higher, and hopes grow for a succesful renegotiation of the north america free trade agreement. we start with facebook. it's already far and away the world's top social network, with two billion users. but can it take on youtube, netflix and amazon in the booming business of video streaming? today it rolls out its own streaming service, facebook watch, around the world. it's been up and running in the us for the past year but it's had a bit of a slow start. only around 14% of americans are using it at least once a week. it has funded a few original shows but most content providers aren't being paid upfront. instead they get a 55% share of the advertising revenue. the stakes are high — the global video streaming market is growing at 10% a year, and pricewaterhousecoopers estimates it will be worth more than $58 billion in the next four years

faster credit from the imf. amazon approaches apple's

what do we do with the imf? there's a very real likelihood that if we do not cut them off at the imf, the american taxpayer who's a biggest contributor to the imf will be subsidizing pakistan's cpac loans. >> you have to unpack this because you use an acronym which is forbidden here unless you click with the acronym is cpac is a china-pakistan economic corridor. it's part of, it's a $60 billion plan of china actually building significant infrastructure and pakistan linking pakistan to china, and critics feel that pakistan is heavily indebted to china because most of them are in the form of -- what chris is saying is that if the united states into supporting an imf bailout for pakistan, which is being sought about, it's the beginning where between $8,000,000,012,000,000,000 pakistan needs to get out of it current difficulties of low foreign exchanges, then this amount would essentially be used to repay china. is that what you're saying? >> basically. and if we don't do that then we have an equally and powerful sc

doesn't america have a veto on getting money from the imf? possibly, but that's less ofa the imf? possibly, but that's less of a concern. the wider implications of a concern. the wider implications of this are that... there are bigger knock on effects to the economic sanctions than the economics. absolutely. it's all about politics, politics, economics, there's no line between them. how worried are you about a nuclear holocaust, all this geopolitical... all these problems causing a big global event? if you have the money would you buy a property in new zealand?” have the money would you buy a property in new zealand? i can't any more because the law has just been passed. this is a story about the fa ct passed. this is a story about the fact the new zealand government has just passed a law to ban foreigners from buying property and the reason behind it is because some quite high profile people with more money than sense have decided to... in the event that the world goes to pot, they're going to go to new zealand, to the large piece of real estate they've bought. peter thiel, the

that is the biggest and imf history. inrequested to speed up payments hoping to reassure investors they would not run out of money, but instead, it seems to have unnerved investors even further. as a matter fact, the last currency default in 2001. the good news is they were -- they don't have a lot of debt they owe. defaulty have had 8 since they declared independence from spain. clearly, this is something that the imf has to get attention i know and argentina going to washington part we will see it happens. more news on friday. haidi: in fact, we are getting more news now from the finance minister, really talking up saying that argentina is competitive when it has a stronger peso. the current fx rate is exaggerating economic fundamentals of the country. saying reducing volatility is going to be -- the peso's ceiling will depend on how well things carry on. inultimately saying they are all working together and the idea that communication is key, saying the government needs to speak publicly. we are also still watching tu

or it could be turkey walking up to the imf, captain had. it happened to argentina and they swore it would not happen again. i don't think we are yet they are, with turkey having to go to the imf, but somebody has to go to the imf, but somebody has to break the logjam, and yet these are two to break the logjam, and yet these a re two nato to break the logjam, and yet these are two nato allies. and the interesting thing about turkey, i suppose, is the fact there is so much exposure to the turkish economy from european banks and from europe generally. it really matters to everybody. it matters, because the turkish economy has been growing in lea ps turkish economy has been growing in leaps and bounds over the last sort of ten years. and now, a lot of borrowing has gone on, and that is where the banks are exposed. so any further hit to the economy and those fears will be realised. we have had greased a few years ago, two or three years ago, we hope that turkey won't go the same way. lets talk about this military parade, it is 110w about this mi

what to do with the imf. there is a very real likelihood that if we do not cut them off at the imf the american taxpayer who is the biggest contributor to the imf will be subsidizing pakistan. >> you have to unpack this? we have just for didn't hear. the economic core door, $60 billion plan, china actually building significant infrastructure linking pakistan to china and critics feel pakistan is heavily indebted to china because most of them are and what chris is saying is if the united states ends up supporting pakistan which is being thought about, it could be anything from $8 billion-$12 billion, to get out of its current difficulties of low foreign-exchanges, this amount would essentially be used -- is that what you are saying? >> basically. if we don't do that we have an unpalatable scenario. if you look at chinese business model colonizing pakistan to enrich china, they have done this in sri lanka and myanmar and bangladesh, they set a price, inaccessible market price and roll up all the brides for corr

it brought back baddmemories of1 imf involvemenn from the past. many rgentinians lamed orraaization for thh country >> ccnadian and american ooficials are continuing negotiations over a new traded deal. this thursday, they try to hammer out a new traded deal to replace nafta ahead of a% friday deaaline set by resident ttump. that is after washington concludee an agreemmnt with mexico earlier this week. officials from u.s. and canada were working llte into the speaking on wednesday, councils administrators saying toboth partiee are comingent. the stage of negotiatton with a lot of goodwill. certainly, ttattis what canada is bringing to the able. positions aad what booh sides need very, very well. ist we hhve always said speaking for canada, we are looking to stand up for our national interests and we are looking to ffnd, mize is that are a win-wii. liftnald trump will partly his import tariffs oo certain countries. ii brazzl, koreaa and argentina, as well as companies being aale to apply tooimportant metals if they can source suppliis from inside t

the imf is coming in, if they will accept them. but they will only come in if brca 1 excepts them -- erdogan. in turkey has shown a adverse risk to implement the capital controls. francine: we have a viewer question. thank you so much for bringing that to us. what this viewer is asking is what do you think the president is going to say to the turkish people? i have no inside loop, but i have to basic on this morning. which is trying to inspire a sense of loyalty. they may have their dollars, but we have our people, our god. when it comes to financial markets, faith is not do enough to move things. people want to see money, and in case, through interest rate hikes. i am worried that he will try to talk aggressively towards foreign speculators who are destroying the country. he will try to inspire people to move together in this nationalist message and to encourage his population to sell their own fx reserves. but that will not be sufficient. because the people do not believe he is on their side. how would you trade the other side? d

now it is on the willingness of the imf to frontload the disbursements. caroline: kindness of strangers in the market as well. how much before we look at other countries? do you think the selloff was the contagion effect as we see the turkish lira being batted today? alberto: it's a high beta to global market sentiment. every time we are in a risk. or external backdrop facing terry -- lisa: forgive me if you answer this, is it going to default again? alberto: not necessarily. -- argentina is very liquid. it might involve into a situation like that. there is no need for argentina to fall to regain solvency. given the dynamic, if they are not able to roll over -- caroline: they've got a huge credit line. lisa: but it has not been enough. all of the money has been cut off for so long. it is an interesting dynamic. alberto: if you don't believe it will work, it won't work. joe: you mentioned trying to change the behavior of the domestic market so that people are not inclined to hold their money in dollars to do dollar rise the economy. when you talk about con

that is why it has said to the imf that we need money now. i know we agree to have it over 12 months, but we need it up front. that prompted another fall, it backfired? a vicious circle. if you reach out for help because your currency is in pain, help because your currency is in pa i n, investors help because your currency is in pain, investors say there is probably more pain coming down the track. it is tough to get out of. talking of pain, the wall street bull run for the s&p 500, have we got pain coming? there is a mixture of use, some see an all—time high and think it must be the end, some people must think it means things are people must think it means things a re pretty people must think it means things are pretty good. the next all—time high could be the end or the start of another long ball run. looking at the rest of the world, the bull markets have not been going quite so long. people might move out of the us and into places like europe, japan or emerging markets, but not argentina, i suspect. or recep tayyip erdogan. shrugging

will be imran khan set to become the new prime minister who will have to decide whether to go to the imf. but the conditions attached to a bailout could make it much harder to fulfil his campaign promises of creating and islamic welfare state. his team say they are exploring all options, including the imf, but are still waiting to form the government. right now pakistan only has enough foreign currency reserves to cover a few worth of imports. this growing financial crisis will be imran khan's first big challenge as prime minister and it needs a solution soon. australia has been hit with one of the most intense droughts of the past century. new south wales churns out one quarter of australia's agricultural out what and that part has been hardest hit, especially over the last six months where 90% -- 9996 over the last six months where 90% -- 99% of over the last six months where 90% —— 99% of the area has dried up. the drought has swept across other parts of australia in the last, farmers are not expecting much from their crops where this season ‘s harvest is expected to fall to its

it is not with the imf is designed to do. taylor: we talked with a lot of em investors and they would like to see a $600,000 basis point rate hike to stem the high inflation and they are not. how concerned should we be the independent is from erdogan? peter: it is not independent. something has got to give and we are wondering what it his going to be. orthodoxy,e economic raise rates -- which will cause recession, by the way, which is a bad thing but it is the lesser of two evils possibly. jason: recession versus the financial crisis? peter: yeah, and another is capital controls where you can't put -- take your money out. jason: which erdogan has been to date very reluctant to -- peter: right, because it is an admission of defeat. jason: we talked a lot about turkey so far, but i would love to get a sense of how investors are viewing this crisis. . taylor: we have a bloomberg terminal function for that. we are looking at the five-year cvs. it is a credit default swap, a bit -- way of buying insurance against a default or prot

the route they go to first is to the imf. erdogan said he doesn't want to do that, hence qatar coming in with the $15 billion lifeline if you look at the outstanding debt, if you go back to the calculation, it's still about 70 billion they would need from the imf. that's about a third of the 200 billion outstanding debt that will come due. we're talking very big numbers qatar has come in at the moment but they may need more than that >> you said there are no talks with turkey, and the imf spokesperson said turkey will need to demonstrate sound economic policies to promote macro stability and reduce imbalances how do they reduce imbalances? >> the key point will be that call this afternoon to see what the minister of finance says of course he's the son-in-law of erdogan. so the biggest question is around central bank independence that's what the imf is implying and what investors need to see that the central bank can be independent and also what they've done in the last few days is put plaster on some faults, but it's dealing

and we're also hearing that it will be a very long way from asking for imf help here >> we're going to talk more about turkey right now thanks so much, steve. but the troubles don't end there as steve and kayla just alluded to turkey's currency, the lira plunged today. just two days ago you only needed a little more than 4 liras to buy a dollar and today you need 7 to buy one dollar also the rise in short-term interest rates in the united states means investors can get very safe yields elsewhere like here and don't choose to invest as much as they used to in risk ier places, and when investors leave a country they sell it today's catastrophic move occurred after turkish president erdogan made a defiant speech which suggested he doesn't want to do what he needs to stop the selling. think what argentina did earlier this summer when they raised them to 40 percent that's what they were forced to do all right, let's discuss more about what's going on here we have three guests joining us. robert pearson, former ambassador to turkey, and gordon chang, columnist at the daily beast and author o

coming up, turkey's cratering market, a possible bailout by they imf -- the imf. rumors are being met by radio silence from the central bank and present erdogan. this is bloomberg. ♪ marketshis is bloomberg balance of power. mark: president trump isn't considering lifting sanctions against north korea. john bolton tells fox that kim jong-un's regime hasn't taken the necessary steps toward getting ready -- rid of nuclear weapons. toton spurs the north release the names of all foreign soldiers killed during the korean war, including those from south korea. an official at the u.s. drug enforcement administration says the percentage of bitcoin transactions involving illegal activity has fallen. it has dipped from 90% five years ago to just 10% today. an analysis of the blockchain data shows that speculation has become the dominant driver of bitcoin use, but the dea cyber task force says the total transaction volume associated with unlawful uses of the cryptocurrency has surged since 2013. spacex has launched its 15th mission of the year. it successfully deployed an

>> imf bailout is a hot topic. as far as we know the turkish government has not applied to the imf for any sort of rescue. it doesn't look like any turkish official thinks it is necessary at this point. having said that there is a clear recognition of the need -- in addition to more broader research. -- or traditional allies such as the u.s. and european union. >> when are we going to hear from resident erdogan -- president erdogan? >> it has been a few days of silence. neither erdogan or other policymakers have made public appearances. on the subject of the economy. there is some anxiety on the lira and that is resulting in more anxiety. there has not been any meaningful comment on what has been happening in financial markets. we don't know when erdogan might choose to speak. >> think to -- thanks to bloomberg's onur ant. -- they are facing challenges to their model. it will discuss all of that next. this is bloomberg. two, down and back up. our phones are more than just phones. they are pocket sized personal trai

focusses on argentina where the government has asked for the early release of a $50 billion loan from the imf amid a growing economic crisis. president mauricio macri said the move was designed to restore confidence in the argentine economy. in the guardian business pages, iconic uk luxury car maker and favourite of 007 spy james bond, aston martin, have brushed off concerns over brexit, announcing plans to press ahead with a flotation on the london stock exchange that could value the luxury car manufacturer at around $6.5 billion. and in the independent sports pages, tennis officials at the us open have been accused of sexist double standards after french female player alize cornet was warned for "unsportsmanlike behaviour" for adjusting her top during at match at the tournament. and finally on the bbc news website, commuters are so regularly using travel time for work e—mails that theirjourneys should be counted as part of the working day according to researchers. wider access to wi—fi and the spread of mobile phones means many people are working longer. we have asked for your opinions

perhaps the imf getting involved . not really, because the president over the weekend made it clear again that he is not seeing an imf deal anytime soon and it is not something he is considering.he also underscored that interest rates are a tool . this shows you where this government is standing on some of these key issues. we are expected to hear from the finance ministry later on in the day. according to the daily news, they have come up with an action plan to stabilize the currency. they describe a clear attacked by a foreign player, the biggest in the global financial system, and this is a quote. making clear that turkey will not ease or convert any of the the fx deposits. but something has to give. something will need to happen on either side because at the moment, this is way too much pressure in the system. anna: indeed. we have seen some moves by the banking regulator in terms of the market. some people talking about is it capital controls by itself. what could we hear about later on today? you said that erdoga

many from argentina have bad memories of bailout from the imf in previous bailouts. the russian president has backed down on unpopular plans to make women wait until they're 63 to get the state pension. the retirement age will now rise gradually from 55 to 60. for men though, it's still a jump from 60 to 65. air canada app has suffered a data breach resulting in the suspected loss of thousands of its customers‘ personal details. the company said it had detected unusual login behaviour with its mobile app and warned users who entered their passport details that data may have been stolen. 1.7 million customers have been locked out. it's just gone 4:30am in the morning. those are the headlines. now on bbc news, hardtalk. welcome to hardtalk. i'm sarah montague. the pictures are chilling — people in the german city of chemnitz giving nazi salutes. they were among thousands who took to the streets to demonstrate against immigrants after an iraqi and a syrian were arrested following a fatal stabbing. some of the protesters chased down people they believed were immigran

drove speculation over extreme steps at a possible bailout by the imf. are the rumors being met by radio silence? we will get that next. this is bloomberg. ♪ scarlet: "what'd you miss?" a crisis in turkey is stoking speculation over extreme steps and a possible bailout from the imf. the turkish 10 year yield jumped to a tenure high. the lira declined to record lows. it rebounded on a fit that turkish officials are heading to the u.s. to discuss the ongoing tensions between the two nato allies. the possibility of sanctions remains a looming threat for turkish.- from the we are joined by the global head .f strategy let's start with the most basic. the currency is in freefall and it stable to little bit. what is more concerning to the central bank of turkey? the level at which it is at or the speed of decline? >> the speed. it is starting to go exponential. the issue is that, what can they do about it? the central bank has been compromised read we know that everyone has been on this for erduon.years -- he installed his son-in-law to head up economics. the

the imf will consider argentina's call to spread this first meant -- disbursement. the televised address took the traders and the country and little bit on the hot -- hop. bloomberg's emerging markets reporter joins us now. did it catch everyone by surprise? could a guesswork -- get worse from here? >> it could. if you look at foreign markets, option traders are still pessimistic on the peso. the happened was that president tried to pass this off confidence but the market took it as a sign of desperation thein attempt to delay fiscal pruning the government has to engage in. it sent the exact opposite messages that he was hoping to send. between the rest of emerging markets is really low. is getting isolated and being targeted for a selloff. things could get really ugly now. matt: you know, i would ask what a country liker argentina or turkey to restore confidence in their currency, but the list is long and i am guessing a lot of it will just be time, right? srinivasan: absolutely. made of promises have been in turkey and argentina and now, it is time to see some act

now we're talking, we need a fiscal package, imf involvement. jonathan: i spoke with jane said we need 500 to 1000 basis points of hikes just to stabilize the situation. does a rate hike get it done? rate hike of any size does not get it done. it comes down to the credibility and policy makers saying the right thing, backing down. turkey is too big in terms of its political connections to not back down. way,e looking at, either no matter what, a hard landing for the country. that means you got financial risk within the banks and tourism and trade go out the door. that is not sustainable. i do think the language is going to term. jonathan: let's move the conversation on. when a currency crisis becomes a systemic risk. are we going in that direction? >> turkey's relationship with the financial system is not near what some countries would be. it can be contained but i agree with kathleen, things have to be done quickly. in 1997-19 98, if you do not act quickly, it tends to make investors pull back and say i do not want to be invested in this situat

they're working to do something along with the shareholders in the imf. this time around you don't see it because of the night. that is a political position when you represent the u.s. to the imf. neil: what do you mean by that? >> we're a big shareholder. i'm sure right now the president is saying, i don't want the imf, i don't want -- neil: to help out? >> at this point to keep quiet and the u.s. takes a position. >> pressure on them. neil: we're getting word fenn, you might have heard this earlier in the forecast, former fbi peter strzok has been fired from the fbi. the president responded to that in a tweet. agent peter strzok was finally fired finally. the list of bad players in the fbi and doj gets longer and longer. that he was in charge of the witch-hunt, will it be dropped, no collusion, no obstruction, i just fight back. i am surprised but it is what it is. >> he was moved to hr for a while. still a member, still an employee of the fbi. i think it was surprising he was left there for this long. to that second part of the president's tweet, i don

as we saw president mccree asking the imf to speed things up, make the payments more quickly. they have the credit line set up and revealing how much the pressure is taking its toll over there in argentina and the markets responded accordingly. if you have an issue in turkey you have an explosion of an issue in argentina, they are trying to contain it. you will do for these emerging seeets, but if you begin to a domino effect and others explode, you may have more risk. where will the money flow? it went quite strong. the five-year paper versus 30 year paper, the spread there is the lowest on record. we had a conversation with mizuho. talking about the italian bond market. liquidities not there am a we have seen record amounts of open interest in btp which is the government bonds. rise to thelt swaps highest since 2013. they may not be that much liquidity and people have taken btp. out of the they do not want to be caught in the eye of a storm. the kennedy -- liquidity seems to be one of the by words. juliette saly has your first word news. good day. juliette: donald trump has

there was an imf report put out last year. it showed a matrix of countries that were preparing the balance sheets and those that were not. three countries were in the far right-hand quadrant that were ,ot preparing balance sheets even with record low interest rates. they were the united states, china, and turkey. this is a fundamental problem that they have taken on too much debt. their banks of use the debt market to finance themselves. that to me is the problem. the playbook is that there is more contagion to happen. there is more bad market reaction to happen over the next several weeks. matt: what does it look like in the immediate? constance: you brought up are really good point, not many people hold turkey anymore. you can sell your good assets to fund your bad assets. that's what caused the contagion. that leads toon the european banks that are exposed to turkey. that's going to get them to look under the hood at banks. a report on asian debt, a lot of it is financed by european banks. alix: how do you hedge it? mark: y

argentina is under an imf plan of $50 billion with the imf that was struck in june this is one of the fallouts that seems to be rippling around the world from this turkey crisis. also makes turkey look rather stand out in the regard because it has so far refused to move given the crisis there in its currency >> interesting steve, thanks. >> sure. >> elon musk relab rae b b lab o his tweet about taking tesla private. writing this morning the claim was baseded on con vversations with the saudi arabian sovereign wealth fund. stock down almost 8% let's kick this around everything centers around funding. we're all in agreement >> yes >> he says i left the july 31st meeting with no question that a deal with the saudi sovereign fund could be closed and that it was just a matter of getting the process moving this is why i referred to funding secured in the august 7 announcement >> there's a really interesting point here last week, we had a lot of people came on and said this could be referred to justice and i think this could be something that he gets in trouble, but it takes off of justice.

faster credit from the imf. magic approaches apple's number, the trillion dollar market cap within striking distance. good morning yvonne. again withllish want the s&p and nasdaq both hitting records again. i will show you those numbers. what we are seeing is this bullishness coming from the optimism from u.s. and mexico and the u.s. and canada. there is still uncertainty with regards to what happens with china. according to analysts, that seems to be something further. aboverst time it closed 2900. up by nearly 1%, 8100, breaking that level. we will get more on that from su keenan. let's look at the boards. over little more insight into what is happening with the currency. lowerged but it had been in u.s. trading. the canadian dollar and mexican dollar strengthening. yvonne: we mentioned how exuberant these markets where. we heard the president of china when it came to why the sessions are breaking down. it might be cupping some of the enthusiasm of her. an all-time high yesterday. we are coming off of that now

through the imf or can block the imf from helping turkey. so the eu is also watching it. european central bank is also a little nervous about what is going to happen with the loans from european banks. >> steven erlanger, thank you for your analysis. we'll continue to for him the story of course. >>> the day's top stories and breaking news on the west coast just ahead here. i'm george howell. >> i'm natalie allen. we'll be right back. this is not a bed. it's a revolution in sleep. the new sleep number 360 smart bed, from $999, intelligently senses your movement and automatically adjusts. so you wake up ready to train for that marathon. and now, save up to $500 on select sleep number 360 smart beds. ends wednesday. and i'm the founder of ugmonk. before shipstation it was crazy. it's great when you see a hundred orders come in, a hundred orders come in, but then you realize i've got a hundred orders i have to ship out. shipstation streamlined that wh the order data, the weights of , everything is seamlessly put into shipstation, so when we pri

i think right now, it may be a mistake to try to work with the imf [ inaudible ]. david: because they go against the imf they would need the support of the administration. i know larry kudlow is a big supporter of what they did back in the '90s. maybe he would come to the fore again and support them if they tried it once more. what do you think? >> i think larry kudlow would be the perfect point person to understand the policy that argentina wants to have a close relationship with the united states and support america's values in south america. david: when you know the answer, it's so frustrating when governments don't choose the answer that they need to. particularly if they are pushed by the imf in the wrong direction. russell abrams, congratulations. good stuff. thank you very much. kristina: we have breaking news right now. this is a canadian foreign affairs minister you are seeing on the screen, chrystia freeland. let's listen in. [ speaking a foreign language ] kristina: if i understood correctly, she's saying it's going to take some time for negotiations, sh

-- ave the imf saying member of the imf said this, they see the indian elephants starting to run. jack: i think what is fascinating over india the past five years, the indian economy has been stuttering along with minimal jb -- gdp, 8% to 10%, despite any credit impetus whatsoever. that is because the bat debt crisis in government-owned banks is so deep, indian banks could not lend if they wanted to. they may not have been allowed to because of reserve bank regulatory action. now you have a situation where growth has begun to pick up. the banks are slowly recovering. what we need now in india is quite the opposite of china. we need credit growth to grow faster than nominal gdp, which it has not done for five or six years. essentially as, very virtuous cycle going because gdp accelerates, banks do well in an environment because they can start growing their acid-base again -- growing their asset base again. we can see real growth will back to 8% or 9% for quite a sustained period. remember the gdp in india is still very low by almost any standards, especially emerging-market standar

they are not seeking help from the imf. it is hard to think that this is not just one bad case after the other that could cause a contagion. i do not see why they are not reaching got right now. jon: is it still idiosyncratic? >> the fact that these are really large reasons within the em -- argentina was also in the news and brazil's elections coming up. idiosyncratic but really big blocks of the em space. however, the market does have a tendency to create this gap. it is also august. the think we have thrown baby out with the bathwater on some of these em names. jon: we have seen this when it was not august and liquidity was no longer there. it should be illiquid currency, but it is this wide this week. this is happening outside of august, too. >> true. but i think it exacerbates it. in the fall, we will get a true sense. look at overall market conditions, we are pretty much unchanged. currencies are pretty quiet. euro did touch a near-term low but it did bounce back. we are not seeing momentum in the big markets. vol is s

they are not seeking help from the imf. it is hard to think that this is not just one bad case after the other. which could cause a contagion. that whyee that, that, they are not reaching out right now. >> is it still idiosyncratic? >> i think the fact that these are large reasons within en that are affecting other large regions, we have brazil's elections coming up as well. a key focus. idiosyncratic. really big locks of space. of see onnd of peon it itself. have thrownhat we the baby out with the bathwater on some of these em names. >> we have seen this where it was not august. suddenly, liquidity rates was no longer there. with something like dollar lira, it should be a liquid currency. the spread was this wide through this week. this is happening outside of august. >> this is true. i think it exacerbates it. i think we will get a true sense of where evaluation should be falling toward. volatility should be higher. look at overall market conditions. pre-much unchanged. treasury does a lot of -- -- third euro deed -- did

they are not seeking help from the imf. it is hard to think that this is not just one bad case after the other that could cause a contagion. but i do not see why they are not reaching out right now. jonathan: is it still idiosyncratic? >> the fact that these are really large reasons within the em, affecting other areas, argentina was also in the news and brazil's elections coming up. that will be a key focus. idiosyncratic but really big blocks of the em space. it does kind of feed on itself. however, the market does have a tendency to create this cap risk. it is also august. i do think we have thrown the baby out with the bathwater on some of these em names. jonathan: we have seen this with btp's when it wasn't august, where you expected liquidity and liquidity was no longer there. the lira, it should be a liquid currency, but it is this wide this week. this is happening outside of august, too. >> true. but i think it exacerbates it. once you get into the fall, i think we will get a true sense of where valuations should be