IMF Managing Director Lagarde speaking from Indonesia:
- Global economy probably not strong enough
- with global public debt at all-time high, any slight change in wind could provoke capital outflows in emerging markets
- our strong recommendation is to de-escalate trade tensions, work toward global trade system that is stronger, fairer and fit for purpose
- Some countries have right fundamentals, worked hard on policy mix and are in strong position which is why we believe we are not seeing contagion in markets
- Supports China moves toward currency flexibility
- Hopes countries do not move towards direction of trade war or currency war
- Hopes China follows recommendation on keeping yuan flexible
Lagarde will be happy with the stock market volatility - it'll mean someone might take note of her comments. Get a bit of publicity for the IMF.
