ftse futures seconds away. but the futures higher. .- ftse futures higher let's get your markets open with nejra cehic. nejra: we so european stocks gain for a third day. it hit a three month high. the stoxx 600 is heading for a weekly game. let's take a look at european equities and if they managed to hold on to those gains today. the ftse 100 coming in higher, .2% up. tech 40 looking pretty flat. we are still -- cac 40 looking pretty flat. -- thetill waiting for u.s. economy could be strong enough to withstand a rate rise. 68% probability of a rate rise. .4%.pen, almost

we want to keep an eye on currencies today. the euro-dollar trade will be key when we hear mario draghi speak. he can seat euro weaker against the dollar. what we have been seeing is the dollar using steam against the euro and the yen, retreating. against the yen. i will bring up the dollar yen now. this is all about the u.s. yield came out of the fed minutes, not just about the prospect of a rate rise, but also the gradual path of rate rises after that, next year. that is what is playing into these currency markets. i cannot bring it up right now, but we are going to be looking closely at the first day of trading for abn amro. this is the biggest european

banking ipo since 2007. abn amro has raised 3.3 billion euros. atsold 188 million shares 17.75. that is equivalent to a 20% --ke, valuing abn amro at allowing the dutch government to recoup some of its wanted to billion euros it spent back in 2008 2 bailout this lender. i will bring you an update. atathan: abn amro priced 17.75. it opens at 18.18. much more on that story throughout the program. let's get the asian market wrap with juliette saly. goodtte: we saw a pretty finish in the asian region. it was looking shaky earlier on. the markets managed to close

higher. it is -- it's best game in over a month. -- it's best game and over a month. a bit of a flat session in korea. it only closed marginally higher. japan, negative but turned positive on the close. up by .1%. now a positive session coming through in australia and new zealand. here in hong kong, we had to -- we had two ipo's today. we had a psychiatric hospital on the market today. inig day in terms of ipo's the region. let's have a look at some of the other stocks we were watching throughout the course of the day. in korea, one of the best performance in the region. the north and south agreed to

talk. big is a company that has a stake in a north korean tourist chain. it's tv unit is returning to profitability. samsung a little bit of a switch up in korea. and new budget smartphone to tap into more of that market. a lot of focus on health care stocks today, primary health care and australia. -- health care in australia. as in japan- astell up .37%. overall, a pretty positive finish to the week here in asia. jonathan: juliette saly, thank you very much. that is what is happening in markets. here is what is happening in today's program. president gives the

keynote address on the last day of this year's euro dollar -- we will bring you that press conference live and in full here on bloomberg. banking on the market, the dutch .- much more on that story the outlook for crude. we bring you bloombergs 2016 look ahead. ♪ mariota jockey gets another chance to signal intentions for the european central banks when he delivers a keynote speak -- keynote speech. this after an account of the ecb's meeting in october shows the council was more concerned about the deterioration in the outlook. hans nichols is in frankfurt at the event. when you look at an event like ecb, it is not an official

news conference. it is a speech. you never quite know what you're going to get, and the you? -- to get, do you? hans: no, you don't. is gambling this conference. it is a chance for him to clarify. the eight -- the ecb has an clear. how quickly they communicate with market participants here it they want to keep lines of participation open. they don't go into a dark. -- into a dark period. this is a chance for mario draghi to speak to dispense. -- two participants. his views on global economy. he has that opportunity today. we have a big panel taking place. brussels,his a lot in

if you're going to have a robust recovery in europe, you need to do something to revitalize or invigorate capital markets lending. you need the capital markets union for that. fore will be a discussion that. at 1:00, we break for lunch. it is a friday here in frankfurt. this congress is done at 2:30. jonathan? jonathan: hans nichols already looking for lunch. this is an open mouth operation. so many to speak today. anyuestion is is there resistance left at the ecb? hans: that is a question that was asked and answered back in january and march when mario draghi prepared the germans. and got them on board for quantitative easing on board --

quantitative easing in the first place. if you extend the duration or , youthe purchase bigger can go all the way up to 33%,, in some ways they seem like incremental changes. whether or not they dragged him along on the tweaks, seems and the debates. how long will the go on? when you switch to the conversation, i will be interested in seeing what the germans are saying and what prussians -- and what pressures they are using. we think we are a long way away from that. jonathan? jonathan: hans nichols in frankfurt. i'm looking for to the ecb. mario draghi and the role he is good to play. our to bring in antonin jullier.

always good to have you with us. good morning. i was reading through the trading notes, the one you offered. will they be a deep throat cut on their fed rate hike. will it be 20 basic points desk 20 basis points? how much more? it is beyond going into 2016. antonin: on the u.s. side, left off is 80% price dan. -- priced in. as we go into the beginning of december and the yellen speech/ecb meeting, what happens to the euro-dollar? our simpson be a lot of the rate cuts -- our assumption would be a lot of the rate cuts, bonds trading's, that is telling you basis cut.-- 100% how much -- the question is what

happens to the euro-dollar? it is going to be a tough balancing act between ecb versus fed and make sure the euro-dollar does not move too much. it takes the dollar too high. jonathan: here's a question. i sit here and waiting for mario draghi. i'm listening what is coming out of ecb. they do that by telling me they are going to increase the individual share limit. we know they're getting ready to do more. they tell me the effective lower band is no longer at -2%. we know they are going to do more. what is the school for disappointment? antonin: there may be some. the equity market is not priced qe. the credit market has been pressing it a lot more than we had. in particular the banks have not reacted down as negatively as one would expect. butwe get a disappointment

it will be balance with desk would be balanced with a strong u.s. economy? -- what isng interesting, if you think of events, much on the horizon. after that, we got a very heavy week. we are going to get pmi from china. we are going to get cpi's in the u.s.. -- in the u.s. a very heavy week. that is going to create volatility after that. december that week in is going to be so busy, dismissing. how do you play that in the lead up to it? do you make the money there? what do you do? what you end up doing is you end up buying volatility

in december? you make the assumption that the two weeks we may trade around? to fund whatever you are buying, he you and up selling volatility --, you end up selling volatility. pressure toit of make performance of the crime side. hedge funds have been performing -- have been underperforming on the year here -- on the year. that reflation new trade -- the context of inflation which we expect to be lower, there are potential signs of it being overpriced. jonathan: the inflation story, goldman sachs, bnp paribas, looking at u.s. treasury saying

this is a market that is underappreciated. throughout to.e if that is the view from the market, what does that mean from the equity market? the case is that inflation will remain muted. there is a technical development . oil has been down for more than 12 months. you may see a pickup in inflation. , minorsr positioning and energy is so huge. there could be a big monetization. there is going be a window of 10 days between the super seven and -- if asset managers want to reassess their position -- we would expect a lot of memorization over the week. [no audio]

recognize it on the way back up. according to tell heads, the expectations of deflation are so high that if it doesn't materialize because the u.s. is a growing more than a thought. consumers are going to spend more. that means you can have proper decision. jonathan: this is why i think this debate is so important. the u.s. 30 year, the yield on that yesterday pinned down to 3%. the long and is saying no chance, you make going to get much out of me. we are staying right down here. no growth, no inflation. if that is miss priced at the end, what- long

does that mean for the equity markets? antonin: big repressing is never good. if ecb brings volatility? if you start seeing the backend moving, it is because there is more growth. it is good for equity assets. in the shorter term, it may create volatility. when things move, it tends to move across the system. jonathan: mario draghi is about to deliver his speech this morning in frankfurt. mary draghi and hear what he has to say. going into next year, what is good to be more important? -- what is going to be more important? antonin: the sum of the two. you look at liquidity versus equity assets. these are high correlations. the bigger question is what does

the sum -- and it is not just ecb and fed, it is also boj and fed ends uphe checking more liquidity, it could be a negative. we don't think it is the case. it will be higher than what gets retracted by the fed. jonathan: there's so much going on, you cannot look at what the federal reserve is going to do. there is no moment in the history that paints a picture of the world we have experience in the last five to six years. what -- does that say anything to you about what we are to experience in the years to come? we make it signs of it now in december. isn't there a precedence for what we are about to see? antonin: the dollar should be stronger. i would highlight it is quite tricky to look at historical correlation of the dollar.

the dollar has been used as the currency. upanother time, it is going because of recovery. i would think assuming the gdp gross in the u.s. materializes. the stock -- a stronger dollar is actually week for the world. jonathan: we are going to take a quick break. inare awaiting mario draghi frankfurt. hopefully he will join us on that podium on the other side of this quick break. ♪

jonathan: good morning and welcome back to "on the move." i am jonathan ferro. 20 minutes into the session here in london. let's get you up to speed on where we markets are trading. the dax is up .2%. a lot of stock moves. let's get to some of them with mary change. thea: let's start with shares and johannesburg rising the most in 6.5 years yesterday. it rose 15%. higher fors traded third day now. manufactures industrial equipment is going to sell its vacuum segment to atlas cargo.

shares rallying off the back of that. the big story has been abn amro's ipo. the biggest since 2007, raising 3 billion euros. the bank price of the shares at .7.71 the shares still gaining. i will throw it back to you now. yetthan: mario draghi not up at that podium. we've got the comments pre-released. he says the ecb will do what it must to raise inflation quickly. recognizing, acknowledging that inflation has been low for quite a while now. they were not ignore that issue. the big red head on my terminal, draghi says the ecb will do what it must to raise inflation quickly. --o-dollar dropping to 10

1.6 -- 1.0 682. we await mario draghi. if we didn't think we were going to get it in december, you are really in the minority at this point. antonin: as we talked about, a lot of the moves in the fixed the marketd confirm is can's -- the market is expecting something. jonathan: the economy needs more aid if the recovery is not self-sustaining did they are worried about the recovery and going to 2016. turning and with tenor lysing into -- and materializing in a negative shock. you share that view? antonin: we think the economy has been recovering. their studies to be some help behind it. ancillary of is the ecb. there has been some developments

recently. gdp is bouncing. we are seeing credit growth --ncing here it -- bounce bouncing. jonathan: the euro aching fresh lows. a lot of it will stand out. i member mario draghi saying precisely the same thing this time last year. ecb will do what it must to raise inflation quickly. the reason i say this is despite all the work that has been done, they have not been able to say -- they have not been in to do what they say they must do. is it out of their hands? antonin: i guess we could do a panel. the reality is we don't know. would inflation execution be in the absence of whatever ecb did in the last 12 to 18 months?

are they still going out to be there at of the markets? yes. should it have an impact in time? yes as well. jonathan: the fx channel seems to understand. the credit channel is the channel worthy at this point. in the u.s., when you boost asset prices, find. here in europe, -- antonin: there's a lot less transmission. the retail exposure to the equity market is low in europe. on the credit side, it is more about allowing the banks to lend again. we have seen credit pickup. the tough balance would be between what we need to do to create this credit growth. there is an argument to say that unless credit growth could set up significantly, the banks will make less money because where the rates are going to be. they are going to meet bigger

volumes to drive the earnings. jonathan: central-bank on-the-job. typically they release inflation forecast every quarter. once again, they will forecast at some point inflation moves back toward target. at some point that is going to happen. every year they keep forecasting the same thing. you can keep doing that, can you? that is the point of the market. antonin: you look at the growth expectation in the last four to five years. they kept coming down. we kept pushing back. is theiting aspect today u.s. seems to be reaching this kind of philosophy. we are seeing strong numbers on the jobsite. they could act for the rest of the world. -- looks a lot better than it did three months ago. we should be ok. --will be above

jonathan: your credit is an important one. i wonder here in europe what is driving the credit. the potential for a high deal market pushed back out once again. that leaks through. d.c. that disconnect? antonin: -- do you see that disconnect? expect moredo volatility to come in from the u.s. market. the drivers of qe in new york should maintain a strong credit market in europe. we could cad correlation -- we could see a correlation. --the equity side, [indiscernible] we are going for this liquidity. things can go up together the most likely japan and europe.

choco as you look at the banks, we know in the u.s. -- jonathan: as you look at the bank's, we know in the u.s. if you push .own yields we know in europe it is a very different picture. augusta bank for credits, loans -- if you go to banks for credit, loans, are we disturbing that by taxing the banks even more. they are cutting jobs. they can't lend even if they wanted to. some of them because they cannot be as aggressive as they need to be. we texan banks so they cannot are we taxing banks so they cannot function in the way they need to? antonin: the deeper cut would hurt. the hope or assumption would be in theeated growth

context of your, we feel u.s. -- as we see a pickup, if we start writing back some of the spanish loans, that should be very positive. genco as we wait -- jonathan: as we wait for mario draghi, the german argument is it dead? antonin: it is convertible overtime. by promising and delivering and under delivering and doing what he said he would do, he has been pushing. jonathan: antonin jullier, think you very much. mario draghi on the states. gentlemen, a year ago in this venue, i said it was essential to bring inflation to target without delay.

the monetary policy would do its part to achieve that. the following months, we took the decision to re-force our credit easing measures and expand our asset purchase progress. that decision reflected the very difficult situation for the euro area and it found itself in last year. after a promising start in the spring of 2014, economic recovery has faltered in the summer and as the year drew to a close, we feared a renewed lapse into reception -- into recession. this would of come at a time when reflation -- when inflation was falling and inflation expectations were clearly destabilized. threat.e was under today, the economic recovery is

on a firmer footing. domestic demand is gradually strengthening. replacing experts as the engine of growth. f real activity and why global trade slowed remarkably in the first half of 20 15, growth has held up relatively well. our measures have therefore clearly worked. in fact, they are probably the dominant force bearing the recovery that we see today. they have been instrumental this arresting and reversing the inflationary pressures that hit the euro area a year ago. nevertheless, that positive picture of the economy has to be seen in a wider context where risks still remain.

though the recovery has proven resilient, growth momentum remains weak. for an economy coming out of a deep recession and headwinds blowing from the global economy have increased. the recovery in the path of real growth has also not yet been mirrored in the path of inflation which still remains well below our objective of below but close to 2%. so what i would like to discuss in my remarks today is how and why our monetary policy measures have been effective and in view over the prevailing risks, whether they are still providing sufficient monetary accommodation to secure our price stability mandate. there are many reasons why it should have a strong impact on

activity and inflation. yield and reduce the cost of finance in the economy through portfolio rebalancing forgets. for banks, they -- effects. for banks, they make it more attractive than purchasing government bonds. higher financial and real estate asset prices can increase the demands and lower the cost of equities for firms. when we launched our asset purchase program, however, it was an environment where the strength of these conventional transmission channels was questionable. at least in the eyes of some observers. one concern was the impact of interventions might be meager, given that yields were already very low at the start of the purchase program. as such, selling securities to the e.c.b. might not feel

substantially richer and spend more. while borrowers might not perceive the material easing in their financing costs and borrow more. indeed, the launch of the asset purchase program, nominal borrowing conditions for virtually all sovereign nations, the most favorable in post war history. but the low yields we saw in january were not a limiting factor in our program. they were proof that it was already working. following our communication on our reaction in the first half of last year, interest rates had in fact been falling consistently proceeding the launch of the asset purchase program. as markets began to price in, our likely response to a prolonged period of too low inflation. taking the g.d.p.-weighted

average of the euro area 10-year government bond yields, yields fell by around 150 business points between early june 2014 and early march 2015. that also has lowering effect through portfolio balancing through the cost of market finance across the economy. yields on bank bonds fell an average of 75 basis points between early june 2014 and the start of the asset purchase program. yields of investment grade bonds issued by firms also fell by about 100 basis points other the tame period of time. status by e.c.b. staff have treated a significant portion of those declines to the credit easing package in the announcement of the asset ease purchase program. for them to boost activity and

inflation, these improvements in financial markets need to be passed through into credit conditions for the real economy. here there was concern about the effectiveness of our policy. that with banks deleveraging, trying to release them as vehicles of monetary policy might be futile. as banks would retain the stimulus and try to deleverage rather than create more loans. in fact, the power of transmission through the banking system has been rising through the life of our program. between june 2014 and today, composite lending rates for financial companies have declined by more than 70 basis points for the euro area as a whole and between 110-120 basis points to stressed economies in the euro area periphery. that is a formidable pass through. just to give you a comparison,

we estimate that in normal times, our policy rate has to be insubstantiate tange takens -- y reduced by 100 instantaneously reduced. banks' rate-setting process is typically slow. but not this time. we are not only seeing this pass through for larger firms but also for small and medium sized enterprises. remember that at the height of the crisis, 2012, the rates on very small business loans, which are typically given to s.m.e.'s were about 2.5 percentage points higher than those on large loans. other terms and conditions such as collateral were also more demanding. as documented by our surveys on

s.m.e. access to credit, at this access to is 2012, finance was considered to be the dominant concern for small enterprises right after finding customers for their business. our measures are gradually changing that purr. since the first round of our survey in april this year, access to finance has dropped to among the least important concerns for s.m.e.'s. they in fact report an improvement in the availability of -- finance and the willingness of banks to provide credit. terms and conditions have also sharply converged towards those enjoyed by large corporate borrowers. so why v has transmission been so accelerated? there are two reasons.

first the asset purchase program s launched against the backdrop of our assessment of bank balance sheets. banks participate in the strongest possible position to transmits the boost to credit supply. second, banks lending processes react to economic conditions. for much of the crisis that, loop was pernicious but our measures have been able to turn it positive. when the economy was weak, banks tended to increase lending rates because they feared the probability of default on their loans would rise. those higher rates meant good credit demand fell and the economy worsened further. as it deepened, service and credit became more difficult for firms and households with outstanding loans, pushing

higher numbers of borrowers into delinquency. the loop then returned back to the beginning as banks originally increasing lending rates was validated. starting in the summer of 2014 however our measures began to increase competitive pressures on banks to reduce the lending margins. the comprehensive assessment meant that more banks were in a position to benefit from low funding costs and lend. while the -- gave them stronger incentives to do so. bank credits therefore became more affordable which in turn stocked higher credit demand. and as that has fed through into a better picture, loan delinquencies have fallen. since the second quarter of this year, no performing loans -- new performing loans have been

declining in economies where banks built up high stocks of bank quality assets. what this underlies is that policies that are good for the economy are also good for banks. even though low interest rates put pressure on banks' unit margins, that is compensated by volume if he cans. there is more activity in the banking sector because monetary policy is supporting the recovery. more over. as performing loans have started to go down, banks have been able to reduce provisions which also supports profitability. so evidence from our bank lending survey suggestses that for the euro area aggregate, the net impact of our measures on bank profit sblet broadly neutral. the impact of our policy on small firms however is already

clear. in the most recent round of our survey, the number of s.m.e.'s reporting an increasing revenues were almost 20% larger than those which reported the opposite. the improvement has been widespread across most countries with the notable exception of greece. the net percent of firms that register an improvement in business activity has turned positive for all subgroups including for the microterm firms that had in the past suffered most. reviving the supply of credit to these firms has also helped lay the ground for an economy-wide recovery investment in investment activity and employment. think that s.m.e.'s are 99 out of 100 businesses in europe produce 5058% of value-added and

employee 2/3 of all employees and those benefits have accrued to countrys with a high concentration of s.m.e.'s such as nose the europe area periphery. removing the obstacles that have suppressed growth in those economies reverberates across the whole euro area. in particular, the recovery in vulnerable countries today provides a partial caution for exporters in core economies against the falloff in demand from emerging markets. between 2011 last year, euro area experts are -- exports are smaller. but more recently while shipment of good and services to china d brazil has dropped, export institution -- substitution has

offset that shock. importantly was the story -- it is not just that our policy is effective. it shows that concerns that asset purchases would lead only to asset price inflation and that would benefit only the more wealthy groups was misguided. it is true that oir -- raised the market value of financial assets but what matters for the combhe is the exact mirror effect of this. a lower cost of capital for firms and an associated boost in their spending power. that has a much broader impact on inflation and eventually on employment and incomes, which nds to reduce income inequality. so the question now is do we need to do more? so the economy is responding to our measures in the direction we

had anticipated. and today we can look at our prospects with cautious confidence. the question we face now is not therefore whether we have the tools available to provide the appropriate degree of monetary stimulus. we have proven that. the question is one of calibration. whether in view of the increasing headwinds we have faced since the summer and the impact they are having on the balance of rates for inflation going forward, the calibration of the monetary stance decided in january is still sufficient now to ensure a return of inflation towards our objectsive and without undue delay. let me highlight three risks in particular, which are relevant for that calibration. first, the downside risk to our

baseline scenario for the euro area economy have increased in recent months due to the deterioration of the external environment. the outlook for global demand, especially in emerging markets has notably worsened while uncertainty in financial markets has increased. global growth this year will be he weakest since 2009. second, even factoring in those headwinds, the strength of the underlying recovery is modest. the present upswing which started in 2013 is the weakest euro area rebound since 1998. that is striking considering that we are in the early phase of a recovery where one would expect to see a much more

vigorous pickup. it is also striking considering the important tail winds helping the economy along. not just our monetary stimulus, but lower price for energy. none of those previous rebounds since 1998 could benefit from cheapening energy. in fact, oil prices have been a constant headwind blowing against previous recoveries. more over, in none of those previous upswings was monetary policy measured by rates as supportive as it is now. third, the recovery remains very protracted in historical perspective. it took between five and eight

quarters for the countries now making up the euro area to recover their prerecession level of real output after the slumps of the 1970's, the 1980's and the 1990's. during the recent recession which was the worst since the 1930's, it took the u.s. economy 14 quarters to reach its precrisis peak. now in our case, if our assessment is correct, it will take the euro area 31 quarters to return to its precrisis level of output. that is in 2016 first quarter. now this matters not just because over the lost output in that time, such a prolonged downturn also inevitably impacts the way firms and social partners set wage and prices. this will continue to affect the

recovery of inflation. though the most volatile components, principlely energy prices explain much of the recent decline in inflation, indicators of the underlying inflation are also at low level. that could imply relatively weak price pressures going forward. we see subdued wage growth in the euro area suggesting that the gap is still exerting outward pressure on wages. the so-called core measures of inflation which strip out volatile components have also been drifting down since may 2012 when the euro crisis hit its climax and had been hovering around 1% for two years. increasing in october to 1.1% is not sufficient to fundamentally change that picture. low core inflation is not something we can be relaxed

about. as it has in the past been a good forcaster for where inflation will stabilize in the medium term. while core good will receive support from the depreciation of the euro, an increasing core services inflation today closed to an all time minimum will depend on rising nominal wage growth. for that to pick up, the economy needs to move back to full capacity as quickly as possible. putting the whole picture together, we have a situation where we cannot yet with confidence that the economic repair in the euro area is complete. the moderate growth implies that we need to monitor closely whether, if left to its own forces, the economy will be able to reach a self-sustaining growth trajectory in conditions of price stability. if not, then it will require

more monetary stimulus, which the e.c.b. will not hesitate to provide. at our december governing council meeting we stressed the strength and persistence of factors that has lowered inflation towards 2%. we will use as one input the euro systems staff projections. another input will be the work of our staff on the monetary policy stimulus that has been achieved so far and the range of instruments available in case more adom dation is seen as necessary. -- accommodation is seen as necessary. if we conclude that the balance of risks to our medium term objective is skewed on the downside, we will act by using all the instruments available within our mandate.

in particular, we consider the asset purchase program to be a powerful and flexible instrument as it can be adjusted in terms of size, competition and duration to achieve a more expansionry policy stance. the level of the deposit facility rate can empower the transmission of the asset urchase program. in making our assessment of the rate to price stability, we will not ignore the fact that inflation has already been low for sometime. looking forward, monetary policy will remain accommodative for as lodge as needed to secure -- long as needed to secure an adjustment in the path of inflation. that means we want to feel suitably confident that inflation will not only converge to but also stabilize around

levels close to 2% over the relative medium term. i said e reiterate what here last year. if we decide the current trajectory is not sufficient to achieve our objective, we must do what we must to raise inflation as quickly as possible that is what the mandate requires of us. thank you. [applause] jonathan: that was e.c.b. president mario draghi giving the keynote address. that keynote address, let's bring those markets up for you. euro dollar a weaker euro off the back o those comments. draghi said the e.c.b. will do what it must to raise inflation quickly. euro/dollar drops below 10eu7b07. down .4% this morning. bond markets not reacting the

way that they should be if you believe inflation is going to be successful. that is an all time low. minus 0.3%. yields unchanged this morning. a lot to get through. we have five minutes to do it. let's bring in richard jones and manus cranny. first of all, the top line. we have to get inflation back on target as quickly as possible. a repeat almost word for word of what he said at the exact same event 12 months ago. manus, to you first. did it signal a lot more is going to come in december? manus: the global economy recovery is the weakest since 2011. the european recovery is modest. he said the weakest rebound since 1998 is goings to take 31 quarters to take that peak. -- hit that peak.

the german bond market and we wrote a piece on it yesterday. 40% of the german bond market is already beyond the grasp, beyond the grasp of the e.c.b. so the bond markets i think are already all priced in. whereas the fx market, richard, maybe this is something you can comparative to. jonathan: if you really think they are going to be successful, you need to start pricing in ahead of the curve. they are going to keep buying bonds and keep buying lots of them. my point would be it was quite balanced. yes, it was a strong sign that we're going to do more. to s.m.e.'s, to lending, to credit spreads. he is still quite bullish on the existing program, isn't he? >> he has to be, doesn't he?

there is still a lot to do. the language today was so reminiscent of the whatever it takes with regards to the crisis we had a few years ago. draghi is a central banker with a plan. he has the bit between his teeth. he has told us he is going to be aggressive next month certainlyly. jonathan: will we have the germans with him? will he have them onboard? the velocity of money. if you're not familiar with economics, think about it. the hot potato of monetary policy. you don't want to keep your bank reserves there and that circulation of money is quickened around the economy. is that the key tool for them as they experience go through the effective lower bound and try to find it? >> i think it is an important tool. negative 20 basis points is punitive. maybe not punitive enough because we still have -- there is 173 billion euros on deposit

every by a within the e.c.b. they want to get that money out to the real economy. think in terms of the actual euro/dollar currency, what is going to be important is to accompany it with more q.e. jonathan: richard jones and manus cranny. francine lacqua on "the pulse," the e.c.b. will do what it must to raise inflation quickly. they are worried about it for a long period of low inflation. will it become embedded? a concern. a big question for the markets. this morning, weaker euro the story of the market. down by half of 1%. the bond market, if you're looking at bonds rs largely unmoved. the dax pretty much flat. so much to discuss in this market of monetary policies as

we enter a key month for global markets. if you want to talk markets, i'm on twitter at ferro tv. best of luck for the rest of your day. ♪

francine: whatever it takes. mario draghi says he will do what is necessary to raise inflation as quickly. the euro falls on his comments. manus: abn amro raises 3.3 billion euros and it returns to private ownership. shares are trading above the ipo prices. francine: the challenge. the french prime minister once the sing in system could collapse. -- the sink -- the sing in system could collapse. ♪ francine: welcome to the pulse.