Meeting much more important. I know were going to do that in a minute. Basically, the journal article suggests that what Carl Weinberg will has talked about maybe finally happened. We will talk about that. Francine we have been reporting this for a couple of weeks. Its something i addressed. They have been asking for some time and debt relief. They have done this veiled threat that if they dont get that relief, they may not participate. News. Get to the the u. S. Is backing libyas request to find islamic state. John kerry is in vienna where he met with russias foreign minister as well is the bromance from other countries. They ruled out the use of u. S. Troops. The majority of britons want to remain in the european union. 55 of those surveyed what the u. K. To stay. Thats up slightly. 40 want to leave. The referendum is june 23. In france, the french president will try to head off strikes. Last week, demonstrators in paris announced the plan that he forced to the lower house of parliament. It makes it easier for companies to fire workers. This would lead to the creation of more jobs. The number three official in the Chinese Congress party is promising to listen to hong kong regarding its economy. He is the highest ranking chinese official to visit the city. Hong kong police are on high alert during the meeting. Its a milestone for the International Space station. It has now made 100,000 orbits around the moon. Thats traveling 2. 6 billion dollars. Astronauts of living aboard they station since 2000. Construction began two years before that. Tom thanks so much. There is not that much going on. That may change at 8 30 a. M. New york with the cpi data. Oil moves. Brett crude finally makes a. This is what im looking at. Global equities are rallying for a second day. The us trillion Dollar Dollar is significant. The Australian Dollar is significant. Tom cpi this morning, ive shown this before. Red. Is core cpi in this takes out selective outliers each month. The court has caught up to cleveland. Yellen out here is the overshoot. Eye you of a trend overshooting is a policy prescription where she would allow more inflation elevated inflation to help the real economy. Thats the theme. We are there already. You want to know where the new there is. Francine this is what i benchmarked. This forecasts growth. And this isows us why i highlighted it in red, investors are showing equities as it improves. I dont know that stocks are seeing something the economy isnt or the other way round. We will speak to experts about. Lets go to china. Malcolm, its great to have you on the program. We found out a little bit more about chinas debt. Larry think of black rock was concerned. We find out that the pboc will have a lot more power. Malcolm thats right. Just like larry think, they are worried about chinas debt. They are taking on some new areas of coverage. Theyve got this assessment system that has been in place since december. They are expanding that already. They are looking at capital flows. This is a new area. It could possibly have a bigger role as an overseer of the chinese economy. Francine this is what larry think told us earlier. Larry we all have to be worried about it. 6 , youconomy grows cant grow out of your problems. You cant grow at 6 and have your Balance Sheets go faster. Francine i had the chief economist talking to me earlier. He says china will have a hard landing. Thatlm anything around you hard landing. Say we are looking for 6. 5 . There will be a bit of a turnaround according to our latest forecast. 3 would be on the low side give this huge debt pile that has built up on the corporate front. Picture,down that that bloomberg estimates. Thats for the debt really concentrates. Tom where is the mechanism to clear that that . I cant figure that out area malcolm one mechanism is the state media and some of the officials champing that unsustainable stock level. Securitize some of this debt. Maybe thats one way out. Thisovernment sponsoring debt for equity swap process. They try to backstop some of the conversion of this longterm bank debt for the local government and convert that into bonds. Tom thank you so much. This is brilliant. Larry think could buy the debt. Its brilliant. I just solved all of chinas problems. Francine lets move on to greece. Lets see if we can get her in trouble. Janet henry is here to talk bank oforage of japan. Larry fink is giving a warning signal to the markets. It has not played out on the markets. There is nothing turmoil we saw back in january. He says we should all worry about chinese that. As it is that as long regulated we are not going to see the bubble burst. Janet all of that is true to some degree. We all know that china has accumulated a lot of debt, particularly since the crisis. If we think about how the Global Economy came out, everyone was slashing rates. Pretty quickly, most of the western world was back on the stimulus because china was reviving very strongly. When you that china was accumulating a lot of debt. They have continued to do so. Withrew the comparisons january. The world was looking at china. The markets are looking at china and thinking every other country has devalued its exchange rate. Policyhina has another and they will devalue. What we have seen is the markets being reassured the china still has the conventional ammunition. Weve seen this monetary revival. Weve seen some revival in fixed asset. All of this means the debt stock is continuing to grow. Are you expecting more stimulus . It has worked so far. We see that in the figures that were unveiled. Will they do a lot more . Janet i think they will do as much as they need to. What happened to china is the they were trying to slow the economy down. Revival has supported the highend property market. Thats why weve seen some macro credentials members. A lot of the third and fourth tier cities have got a lot of oversupply. We will see further measures. All of that fits in with the longerterm policy that needs to come through. There is an urbanization of china. I think its been slow to much. We will see more physical stimulus. Are does beijing have the support of the Regional Power cities . Do they have the support of shanghai . Western cities . Do they have the support of hong it. . Janet i miss that the grand knowledge that my chinese speaking colleagues hampered they have a strong Central Government administration in china. In the same way, local governments overshoot or under deliver policy reforms and the way stimulus is delivered. Policy is set by the federal government. Coming up from the London School of economics, will join us. We are thrilled to have him on today. Francine this is bloomberg surveillance. Tom keene is in new york. Ares sales growth that the estimate. Profit came in short of expectations. Vodafone has narrowed declines. Meanwhile, the government of japan will pressure motion phone carriers to come cheaper plans for customers. Rising profits show the mobile operators have room to reduce costs. Japans three largest carriers have offered rate plans but only to a limited number of users. Who has the toughest job in european banking . Martin gilbert told francine that its the Deutsche Bank coat ceo. Ony dont have to count Investment Banking for earnings growth. The think he probably has tough job. There is a very good wealth manager that he can fall back on. Think theyve all got good hits and theyve all got investment banks that are probably trying to downsize sherry shares are down 36 in this year. Francine thank you so much. We had a great conversation with mark gilbert he did not pull any punches. Week oncatch that this friday evening. We talked about brings it in the risks out there. Lehman likeout moments. He said thats not going to rexit happens. B tom i havent looked at Deutsche Bank chart in ages. Its not a pretty sight. Of residence, the wall street journal reports people concretetalk about terms of a proposal by the Monetary Fund where they say these will be the rules. Paul joins us from the London School of economics. Quickly, you have said for years there must be a longterm debt extension to help greece. Are we finally there . Paul i hope so. The imf has been pushing for that for white some time. They will have to convince the germans to go along. Happens, this will be the final debt relief it is essential for greece to survive. Tom how interesting is the rate if they postpone the debt for years in a negative rate environment, which is clearly what europe is in. How important is a coupon . Is that something made out of thin air . The greek debtke and you compute the future payment,the interest you have to take a higher interest rate. Take one that has some risk involved. I think the scheme that the imf implies debt relief is substantial. Really a debt relief. It goes in that direction. Francine whats new now . The imf seems to have put a date on it. They want debt relief until 2040. Is there a probability that if they dont get that, the imf walks away . What does that mean for the credibility of the plan . Change thewould whole thing. Some might also be bargaining that they are putting on the table. There might be the hope that it might not the is drastic. This would be fine. This can succeed. Dont want debt relief or anything like that. They can sell to their own population. Thank you so much on a short notice. An amazing story as we finally are there. We will advance the story with Deutsche Bank. Brian will join us from civil research. He has huge digital disruption within media. This is bloomberg surveillance. Francine tom keene is in new york. We look at oil trading. This is on speculation that crude stock piles climbed last week we lost production in nigeria and canada. Our chief Energy Correspondent is here with us. When you look at the price of oil, it seems like its much more imbalanced because of this disruption. Clue that weve not would lose so much. The economy production is at the lowest in 27 years. Are hitting. They know what they are heading now. There is a significant disruption. Francine its a benchmark. If you look at the chart i made, it follows the wti. We came remarkably close yesterday. I think there is a lot of attention. To things are going to happen when we hit 50. We are going to have an index bracket. Thats going to enter the oil arc it. We are going to have a lot more hedging from Oil Producers in the United States. Be two veryg to strong forces that at this point we dont know which one will win. He dollars is the key. Francine does that reassure you about the economy . Janet thats certainly good news. It stabilizes the inflation expectations. I worry if it rises to sharply, particularly if its supply lead rather than demand led. , that rises to quickly engine disappears. Francine we were talking about how there is so much cut in investment. Janet henry stays with us. We will talk about some of the currencies next. This is the picture for a lot of the currencies. I want to show you the Australian Dollar. You can see european stocks are getting 6 . Tom many stories are out of london to keep us entertained. First wordheres news with shery ahn. The missing malaysia an airliner may not found. Guardian there is a decreasing possibility of success. They have been searching the indian ocean since the plane disappeared two years ago. The world take may issue bonds to fight rakes of diseases. The debt would be modeled after catastrophe bonds. Would bein protests forgiven in the event of a disaster. The Obama Administration will announce today that its easing sanctions on myanmar. They have a democratically elected president in office. Easing sanctions will make it easier for u. S. Companies to business in the country. And amtrak engineer was distract for his train derailed in philadelphia, killing eight people. Thats when investigators will conclude today. According to people familiar with the matter, a rockthrowing incident involving another train caused the engineer to lose track of the speed limit. Hillary clinton will try to avoid losing both of todays democratic primaries. Her lead over bernie is almost unbeatable. Lose in kentucky and oregon would slow her momentum. Kentucky is considered a bigger prize. Global news 24 hours a day journalists and 150 news bureaus around the world. Francine thank you so much. This is what were watching out for the rest of the week. We are talking about federal Monetary Policy. The fed will give more indication after we see the data. We will have the g7 meeting in japan. A lot of people are talking about that. The boj did not want criticism on their home turf. Lets get to the chief economist. People are saying we are reaching the end. There are so many side effects. Its unclear why the fed is not hiking. Are you concerned that a major policy will stay . That will bring us into something ugly . Janet weve done all of the easy stuff. There are more things Central Banks can do. There are risks associated with them. I think the feds reaction has shown they are well aware of the risks of making a policy area. They seem to start the year with we are going to raise rates four times in every year last year they got one. They will likely get one this year that. They dont want to be like the other Central Banks it had to quickly reverse policy. They have actually had to reverse course. I know its extremely difficult. Francine is there a dangerous it inflation overshoots and they missed the boat with a need to start normalizing further . Janet there are always risks of overshooting. The fed has been very clear that they have asymmetrical target. Its not like the ecb. The fed is equally happy with 2. 5 . I think they are more or to take the risk of overshooting. They have undershot so long. Its almost like a price level target. We can afford to take the risk and overshoot. We know what works to bring inflation down. Tom we have shown this many times. Here is the original boj action. This is what they would like within the japanese government. This is where they would like it to go. Down we go with the yen strength. There is an interview today. Aboutis a discussion intervention as an option. Do you see us anywhere near coordinated or less than coordinated for intervention . I dont see it. I dont see the rhetoric around intervention. Janet i dont either. Weve got the central bankers and the finance ministers this week and the heads of state the following week at g7. We know the constraints we operate, you can only intervene if your currency is significantly overvalued. I dont think the yen is overvalued at these levels. That level where is of over valuation . What would it give you a tendency towards overvaluation . Janet its more the japanese authorities. That could be a potential trigger for currency intervention. Your point about coordinated intervention, are we there yet . There was speculation after the shanghai agreement. I dont think there was an exclusive report. I think its clear that yellen and draghi went home with more awareness of the fact that their policy actions could have implications for the rest of the world. Prevent them from meeting their own inflation targets. We are still a ways away. Its not in place of the idea of some kind of a court come through. Francine the boj has the most difficult task. They cannot increase wages. They are not getting the inflation target up. It goes negative. Last month, they decided not to do anything does that make him lose credibility . Janet i think the credibility has been damaged. He did not manage expectations. He not only didnt get the end reaction, he damaged consumer and business confidence. He said he did not do anything. I think the yen is an interesting one. 82 120. Went from that did not help the japanese economy very much. To me, the important policy for physical. Ctually the i think its moving toward fi scal and Monetary Policy working together. Francine is the jury still out on whether it works . Do you think it hasnt worked and thats why they have to focus on the third area . Janet hindsight is a wonderful thing. I think when it was initially maybe it would have had a chance of working if they hadnt raise the consumption tax as quickly and aggressively as they did. The monetary expansion is what the textbook said they should do. It was in the right direction. Expectation was in the right direction. They did not given enough time. They killed consumption with a consumption tax and tax. Tom later today, a set of conversations that are quite important. Alix steel is in california at the Goldman Sachs leverage finance conference. She has a set of speakers. They are speaking on commodities and the state of m a. This is bloomberg surveillance. Tom good morning, everyone. Its time to migrate to an important discussion about emerging markets. Let me bring up the chart right away. I was not aware of this massive underperformance fund going back four years. The emerging markets. That is a nice segue. Forget about Robert Redford and meryl streep. Of dunn has done that out africa. We are thrilled to have you here. Whats the biggest stereotype developed people get wrong about africa . Things are moving on its own terms in a rational way within individual countries. Or what help to they need the health to get out of the way . Jan there has been too much foreign interference. Africa needs investment and entrepreneur ship. The private sector can generate. Respond whenou they say theyre going to exit . Jan it makes no sense whatsoever. Jumping on a bandwagon is superficial. Francine do we consider it a frontier market . There might be a lot more risk out there. Itsyou look at africa, individual countries with individual problems. Jan very much so. There are more than 50 countries and some of them are doing really well. Its this difference between frontier and emerging markets. Its unclear. Its a spectrum. You have some very shallow Capital Markets and move too much deeper financial markets. Africa really spends a broad range. There are middle income countries. Francine where do you see the biggest opportunity . I am looking at south africa. It has huge potential. There is an effort to restore investor confidence. What does an investor do in south africa . Janet its interesting. The bond yields are high. A major pickupf in inf