Ukrainian Lawmaker Says He Met with Giuliani in Kiev; Italian Sports Newspaper Defends Black Friday Front Page
QUEST: I'm Richard Quest. There's a lot more QUEST MEANS BUSINESS in a moment. We'll hear an exclusive interview with the new Managing Director of the IMF. And also the pound is soaring one week from the U.K. election. An election where Brexit might be more certain afterwards, but we need to examine why selling is so strong. And we'll do so after we have the news because this is CNN, and on this network, the facts always come first. U.S. House Speaker Nancy Pelosi says Democrats are moving forward with articles of impeachment against President Trump, saying the president leaves them no choice. For his part, Donald Trump is telling the house to impeach him fast so the process can move to the Senate where he says he'll get a fair trial. President Trump's personal lawyer Rudy Giuliani may still be investigating conspiracy theories in Ukraine. In a Facebook post accompanied by this photo, a controversial Ukrainian lawmaker says he met with Giuliani in Kiev to discuss what he described as Ukraine's inefficient use of American tax dollars. In a text exchange with CNN's Dana Bash, Giuliani wouldn't confirm whether or not he is in Ukraine. Italian newspaper is defending its front-page amid widespread criticism. It's a Rome-based sports newspaper and says its headline Black Friday has been twisted into poison. Now, it refers to two star footballers in a preview of tomorrow's match between the homeland AC Milan. Both clubs say they banned the newspaper from training facilities for the rest of the year. The new managing director of the IMF has warned that U.S.-China trade tensions will cost the global economy $700 billion by 2020. Kristalina Georgieva spoke exclusively to CNN's Eleni Giokos in Senegal. I beg your pardon, the satellite is working. Eleni, Kristalina has -- is new in the job, very experienced from the --</s>ELENI GIOKOS, CNN BUSINESS AFRICA CORRESPONDENT: Yes --</s>QUEST: World Bank -- very experienced in the World Bank. But now she's got to actually get structural changes. So what does she want?</s>GIOKOS: Yes, so firstly, it's very interesting. This was a first big trip as the MD of the IMF. And she came to Africa and I'm just off the plane from Dakar, Senegal. And it's interesting that she chose to come to the continent. And they spoke about two major things, so firstly, its sustainable debts and sustainable developments. These two topics, Richard, are not only very important for Africa, but the rest of the world. And we know that the world is more leverage now than it's ever been, and the question is, can economies handle these levels of debt and still ensure that you've got economic growth. And in the back- drop, of course, you've got the global trade war that's playing out. We've heard these numbers before, $700 billion wiping off a significant amount of global growth. But the question is, is it going to be a new normal? The fact that we're going to see a prolonged trade war, trade tensions between China and the U.S. And she says, well, we better gear up for it. Take a listen.</s>KRISTALINA GEORGIEVA, MANAGING DIRECTOR, IMF: First, we have been very clear what is the cost of trade war. By next year, we would lose as a planet$700 billion. This is 0.8 percent of the global GDP. Everybody loses. Second, we have been also very clear what can be done so this slowdown in a synchronized manner we have seen can be stopped and reversed. And we say to countries three things, one, if you have monetary space, if you cut -- if you can cut the interest rates, please do it. Very few countries now have that much space. Two, if you have fiscal space, please use it. Some countries do have fiscal space, and we're seeing even more reluctant players like Germany --</s>GIOKOS: Yes --</s>GEORGIEVA: The Netherlands, South Korea, they're coming up with stimulus packages. Three, most important, everybody can do it, structural reforms, labor market reforms, eliminate red tapes or private sector can boom, jobs can be created. So one, two, three, and I think we see governments around the world actually listening.</s>GIOKOS: But a lot of countries don't have fiscal room to take up more tools out of the monetary policy box, that's the big problem. And the world is very leveraged right now. If you see a further slowdown or this trade war continuing, is the IMF ready to step in? Do you guys have enough resources to do that?</s>GEORGIEVA: That was the very good news that we got during our annual meetings in October, my inaugural. Our shareholders committed to provide the IMF with fiscal financial capacity of $1 trillion. So, we do have sufficient firing power to step up. But we tell countries, do the right thing so you don't need to come and knock on our door for money.</s>GIOKOS: Right now, at this moment, how are you feeling about all the uncertainties, you feel optimistic that we're going to work as a global team because that's the message that you've giving everyone.</s>GEORGIEVA: What we see is that we need each other more, but it is harder and harder to come together. And institutions like the IMF have a duty to bring our 189 membership and seek that consensus to take action together when this is necessary. I do believe that the world is changing much more rapidly today than 20, 30 years ago. This is the new normal. Uncertainty is the new normal. And therefore, we have to help our membership to be more agile, more adaptable to this fast-changing world. Enjoy the pace of change today, it will never be that slow in the future.</s>GIOKOS: And she makes it sound easy, right? Three things that we have to do to ensure that we don't continue on a global slowdown when we get rid of the uncertainties, but it's easier said than done because there's politics involved. There's so many things that economies need to do. And one thing we know for now is, there isn't a lot of political will and everyone is becoming a lot more protectionist. So, Georgieva wants to create a global team, whether she's going to be able to achieve that through the IMF and its efforts is going to be an interesting one to watch as she heads into 2020.</s>QUEST: Thank you. Eleni is in Johannesburg, thank you. To the markets, the Dow -- well, look at the Dow, it's down, but now it's back up -- but now, it's down -- now, it's back up again. But we're only talking about 40 points, which does suggest that might eke out that gain by the closing bell. But it's really -- it was -- look, it's all about China and trade again where officials in China -- officials said trade negotiations are back on track. They gave a boost. The U.S. Secretary -- Treasury Secretary confirmed that as well. Chad Bown is in Washington, a senior fellow at the Peterson Institution Service economic adviser to President Obama. The trade question -- the markets are still hanging on it. They haven't quite, you know, decided, well, to hell with it, we don't really matter. Every time there's a movement that we're in the talks, we see it in the markets.</s>CHAD BOWN, SENIOR FELLOW, PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS: So, that's right, so our next big deadline is December 15th --</s>QUEST: Right --</s>BOWN: Which is 10 days from now when the next slot of tariffs on $160 billion of U.S. imports from China are still scheduled to go on. So, you know, we'll see if they get a deal, if President Trump gets a deal and announces at least a temporary pause on the tariff escalation. But for now at least, you know, I think the markets are right to be a little bit concerned that those tariffs are still out there.</s>QUEST: So what do you make of this linkage that the president is trying to do between trade and those countries that don't meet their NATO requirements? It's not flushed out, but there's a veiled -- well, wasn't a veiled suggestion, that if you don't meet 2 percent, then there'll be trade action taken against you.</s>BOWN: So we've seen the president do this sort of thing before. President Trump likes to use tariffs as, you know, sort of the hammer with which to address every international challenge that are seemingly out there. We saw this before this Summer, even after Mexico for example signed up to the new NAFTA, the USMCA agreement and they were putting it through their Senate. At the same time, President Trump out of nowhere said, well, you know, if you don't deal with my problems, my concerns on immigration and the southern border of the United States, I'm going to hit you with tariffs. So, you know, he's sort of threatening to do the same sort of thing to NATO allies here, and we'll have to wait and see. This is you know, kind of a common theme that comes out of President Trump.</s>QUEST: You were an economic adviser, you know how these thinking -- I agree, this particular White House is perhaps a little more unusual, the most. But what will they -- what will they make of this spat with Canada? The Trudeau comments about advisors draws hitting the floor. The president calling Trudeau two-faced. Is it your thought that this somehow the U.S. President retaliates or is it just -- get forgotten?</s>BOWN: Look, this administration is different from any in modern memory. They -- you know, they choose to conduct diplomacy, if you want to call it that differently than most traditional administrations would. And I think they've put trading partners and friends and the allies even in different positions than they would otherwise have been. And so, you see, you know, diplomatic gaffes being made on all sides. And you know, we're --</s>QUEST: Right --</s>BOWN: Just kind of in a new normal. What this ultimately leads to, who knows?</s>QUEST: Right. Finally on that new normal, interest rates. There seems to be a consensus that the ECB and the FOMC both on -- what -- different levels, of course. But hold rates where they are for most of 2020. Do you subscribe to that?</s>BOWN: Well, I think it's going to be hard to tell. And obviously, it's going to depend on, you know, how the economy actually starts to perform as we head into next year. And as you know, the IMF indeed indicated in your last segment, you know, what the implications of the trade war ultimately are, and you know, what actions -- other actions on fiscal policy that some of these governments take. So, I think it's possible. But I think a lot of it is still dependent on how the economy is ultimately going to, you know, start performing over the next -- over the next couple of months.</s>QUEST: Thank you, sir, much appreciate it joining us tonight. Now --</s>BOWN: My pleasure --</s>QUEST: In a moment, a new merger could be on the horizon this holiday season. The owner of Gucci is reportedly looking to buy Moncler. It's Italian company -- Anna Stewart, the sort of person who will know about this sort of luxury will be with us after the break.