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00:00We heard from the deputy governor of the Chinese central bank a short while ago talking to us saying that the Chinese currency is more or less stable at equilibrium. How do you interpret that. I think you have to see the whole Chinese story in a way in a broader context. If you look at credit if you look at the investment side of steel if you look at the currency side if you look at the banking system then you get bits and pieces. And if you look at the overall situation what you are having is a very important change of speed into what I would call a more sustainable cruising speed at 11 percent. You were at breakneck speed when you are breakneck speed you can break your neck . This is a problem. Now they've come to a more sustainable and whether it's 7 percent or around or a little below whatever the question is how to do it in a way which will last. And second that does not create distortions that not create bubbles and they are looking they are you know trying to refine to trying to fix their tools and strengthen their tools. They don't have all the answers but my impression is that they're very well aware not only about their own issues but also about the fact that everything that happens there is critical for the rest of the world. And the expectations about the future and to that point returning to the Chinese currency will those kind of comments that the currency from the deputy governor of the central bank is more or less stable at the equilibrium. Now will that calm some of the concern and I guess anxiety we've heard from some of the G 20 participants that what China is doing is engaging in competitive devaluation. Listen we went through that and it was the only game in town about five years ago four years ago . After that the Chinese adjusted the currency and then everybody had kind of peace of mind about this issue was not front and center anymore and now it came about as a response as a policy response to a real issue which is something that happens with every currency in the world when there's a big issue there are just a currency and nobody writes home you know about this. Now the Chinese have done what would be within the what I would say the expected realm of things. I don't think the big issue about China today is whether the remedy is somewhat weaker or stronger . Not anymore. I think the question is about the whole economic structure China the investment structure of China and the change in the productive model going from investment and exports into domestic consumption as they move ahead to provide their citizens with better standards of living and provide more services to their people. And as you have this massive massive movement from rural into the cities which in their five year program is about one hundred to one hundred and five million twenty one million per year in the next five years. Let's talk about the U.S. for a second. Yeah know we've got our hands on the draft communique last night. There's a not so subtle reference to the need for countries to communicate clearly on their tightening policies and calibrate it with other countries and not so subtle reference perhaps to the Fed. What are the G 20 countries saying to the United States at this meeting. Well we're going to see what they have to say because the meeting starts tomorrow. Yeah but what I'm telling you this is Uncle Gary as Secretary-General of the NYSE Nasdaq G 20 idea is calculate the speculation the cost to the world economy about trying to guess when the Fed is going to start or not start etc. . My point has always been for a long time now normalization is good. Normal is good normality is good. Moving the rates marginally upwards which is going to be a very gradual slow pace anyway in any case is a signal of the way to go. Everybody understands it's inevitable. The only question is one two months later that will not change the fate of the world. I would probably say let's go through it now so that we eliminate this uncertainty will eliminate the speculation because we are moving in the right direction for the for the right reasons . Now whether data driven decisions and is perfectly legitimate the data changes decisions may be delayed or not I think what the Fed is doing is perfectly rational and consistent with what they have been saying it's some markets that would like perhaps to have you know greater certainty in order to do the right bets . But you know it's not the policy that is being affected. It's just the speculation that is being promoted by these people who are demanding on the Fed what they call more clarity that the Fed has been pretty clear so far. And they set the stage and they developed the new language and now every single central bank has developed this kind of clarity. And from my point of view they are as clear as you can get because what they are saying and please respect the intelligence of the people not only of the Fed people who are very intelligent is to say how can I make an absolute statement what I am going to do if I don't know what's going to happen on the on the employment and on the growth side. There are many uncertainties so there is an element of uncertainty which you can't get rid of. It's inevitable .

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Fed 'Normalization' a Good Thing: OECD's Gurria

OECD Secretary General Angel Gurria says that the U.S. Federal Reserve will raise interest rates gradually; the only question is when it starts. He also said the Chinese economy is adjusting to a more "sustainable cruising speed". He spoke with Bloomberg's Ryan Chilcote at a meeting of G20 finance ministers in Ankara on "the Pulse."

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