good morning. a new week, a new round of tests for the global markets. at the top of the list, central bank decisions and corporate earnings reports. decision 2016. new this morning, ted cruz and john kasich teaming up to stop donald trump. the shocking details straight ahead. and happening now, president obama is in germany making a major pitch for a trade deal. it's monday, april the 25th, 2016. "worldwide exchange" begins right now. ♪ good morning and welcome to "worldwide exchange" on cnbc. i'm sarah eisen.

>> and i'm wilfred frost. right to u.s. market action, the u.s. futures have taken a turn for the worse over the last hour as we are down .50%. the s&p is down by 8.5 points. the nasdaq down by 22 points. the nasdaq was down last week, tech earnings disappointed and the other two indices flat not eking out any significant gains. we'll have a look at the ten-year, this is the focus with the two-day fed meeting kicking off tomorrow. we have seen those yields climb a little bit over the last ten days or so. we are at 1.87 closing in on 1.9% having hit lows of 1.7% a few weeks ago. >> some of the weakness could be coming in from overseas. we just got word of the efo survey dropping in confidence in april taking a toll on the german dax underperforming down 1.3%. but losses pretty much across

the board right now with weakness in commodities playing into it. also what happened in asia overnight. stronger japanese yen defined the session. that hurt the nikkei down three quarters of a ent. we'll get a bank of japan meeting on thursday. expectations for more stimulus, the market is testing the bank ahead of that by buying up the japanese yen. loss also in china and hong kong. chinese stocks down .40% with news to get to there in a moment. >> this comes off gains for international markets. the ftse world index was up 1%. that didn't come from the u.s. but international markets and the european markets, in particular, had a good couple of weeks. we'll go to the broader markets. oil prices, extraordinary gains up 8% for wti. 4% for brent. of course, having followed no deal from doha a week or so ago, we are looking at some profit taking from oil traders today. 43 we are seeing wti, brent down

1.4%. that has not helped the international markets overnight, but it does come off the strong gains we saw last week so let's have a look at the dollar this week. weaken upped by 1.2% for the week. so the yen did change its strengthening path ahead last week before the bank of japan meeting this week. the u.s. dollar is weakening the other way, half a percent move for the dollar against the yen today. the big question, you mentioned the weakness in tech earnings going forward this week, it was a heavy one, not just for earnings but central banks. double doses for central banks. more primaries on tuesday when it comes to politics and perhaps another chance for technology with the biggies like apple and amazon reporting later in the week, facebook as well after disappointing quarters from microsoft. >> and netflix on the tech side as well. all new on the tech side and the nasdaq the weakest of the three indices last week. among today's other top

stories, we are following politics for you. republican presidential hopefuls ted cruz and john kasich are joining forces to stop front-runner donald trump from getting the delegates he needs to become the gop nominee. so the cruz and kasich campaigns announcing an agreement last night. cruz will focus his campaign time and resources in indiana while kasich will do the same in new mexico and oregon. donald trump quickly reacting in a tweet writing, wow, just announced that lyin' ted and kasich are going to collude in order the keep me from getting the republican nomination. desperation! clearly trump can use this to his advantage, it plays into his whole idea that the election is rigged against him. others might wonder why it took so long for the two to figure this out. >> absolutely. it's going to be the twitter question today. we want to hear from you, it hasn't been the twitter question yet because i was slow to produce it. so it will come out on the next break. do check in on twitter to let us know your view on that deal once i get around to tweeting the

question out. >> the idea clearly is if kasich and cruz are splitting the vote, they are just leading to trump getting more delegates, which is what we have seen in the last few primaries. this is happening all along. if they can team up and get rid of the floralty, it could take them control. >> the the resounding victory for trump, he's on track at the moment if the polls are right tomorrow to do pretty well. so this is -- i think the word desperation donald trump used is definitely an element of there, but can it still work is the question? president obama is meeting with german chancellor angela merkel. obama is making the case for the european union and the united states to move forward with a free trade accord. the deal is still under negotiation and could boost each economy by about $100 billion. meantime, in an interview with the bbc over the weekend,

president obama warned that the u.k. could take up to ten years to negotiate trade deals with the u.s. if it leaves the european union. the interesting thing is the exit campaigners have said in advance of a potential brexit vote they would quickly renegotiate free trade deals with the likes of the u.s., particularly the u.s. as one of our main allies. let's hear what obama had to say. >> we wouldn't abandon our efforts to negotiate a trade deal with our largest trading partner, the european market. but rather it could be five years from now, ten years from now before we are able to actually get something done. >> now i bring this up, sarah, because it's getting a lot of attention in the british press. obama, we knew he was going over in favor of britain staying in the eu, but this is a resoundingly strong announcement of president obama's views on the issue, saying it would take ten years for the u.k. to

renegotiate a deal with the u.s. he said that they would back up the queue for these things. it got a lot of coverage. and exit campaigners are angry about this because it's a foreign leader coming in to weigh on a domestic issue. one of the points they push back on, whether or not he's correct -- >> it's not domestic, it's a global issue. >> for him to come and say, i'm just outlining anger, to say, well, you might have that view but what if nafta joining with free trade also meant you have to take political leadership? what if the tpp means you have to add here to rules of the asian court of justice, for example. that's pretty rich from him coming over. you guys should stay in but if you impose this on the u.s., not for us but you guys should stay in. that's the anger out of this because his view is not -- >> so you don't think it is backed by it? >> well, the other side says it's important our allies give

the views on the trade deal with the u.s. to be important in the next negotiation. but i think it was interesting how clear and how stark his support was and he didn't sit on the fence in any way. >> but i wonder on the flip side if that speaks to how important this is and how high the stakes are, yes, maybe for trade but also for geopolitics and the u.s. to have a strategic allie in britain staying in the eu to make them a more powerful force together when combatting issues like terrorism. it speaks to just the fact that, yes, maybe it may be a national issue but there'ser into er i t international concern. >> i think the vote is a britishish shoo uh so i think it's caused consternation to come out with a clear opinion from a u.s. president. we'll talk about this over the next few weeks. we mentioned it's a busy week for economic data and earnings. new home sales out at 10:00 a.m. eastern time. then at 10:30 a.m. we'll get the

results of the dallas fed manufacturing survey. on the corporate front before the bell, we get results from halliburton, kkr and xerox to name a few after the closed express scripts are set to release earnings. on the economic front, tomorrow the two-day fed meeting begins and we'll get the post-meeting analysis on wednesday at 2:00 p.m. eastern time. there's no news conference in this one, have u.s. the statement and the announcement with no change expected in terms of policy. a lot of data to watch out on thursday, gdp, gross domestic product expected to slow the most in a year. we will also get personal income and spending numbers out on friday. and another busy week for earnings. tuesday, apple reports along with dupont, proctor & gamble, at&t and chipotle. a lot more including boeing and facebook on thursday. that's the busiest day of earnings season. ford, amazon, will be releasing results. and then on friday, chevron and

exxon will be the ones to watch with lower profits expected on the back of lower oil prices. what will they say about the outlook? >> lots of earnings to focus on. saudi arabia is expected to announce a comprehensive plan about the post-era oil company. it's called saudi vision 2030. the goals include diversifying the economy, creating more jobs. the kingdom and saudi stocks have suffered amid lower oil prices recently. staying on the global market theme, new numbers showing china's total debt rose to a record 237% of gdp in the first quarter. that is up from only 148% of gdp at the end of 2007. the financial times reporting total net debt hitting 2 trillion at the end of march as beijing turneded to lending to boost economic growth. the overall number of 237 sounds high but it's on par with countries like the u.s. abut its the rate of speed causing alarm

bells and the concern of a crisis that it could fall apart faster. >> the rate of speed is that they are still in the emerging economy. they have become indebted, can you sort off and pay off this debt at the current rate? but if your gdp is still so low, it accentuates how big that number is. they have no monetary fl flexibility. they have already built up the debt. just a reminder, these types the of statistics manage to fall through the cracks and have recently, but you have to say credit in the cracks with consumer led growth. there we go. that's my view. right. stocks to watch today, volkswagon saying it affects the positive sales in the country from the two previous quarters to continue. so you can listen to companies

like volkswagon as opposed to me for a differing view. they expect to invest $4 billion with the venture companies in china this year. vox way oregon shares down 3%. the of vw is upbeat on china. and netflix sold 82,000 of their shares in transactions. this is according to an sec filing. it is flat in the market today. and pershing square reports stake in canadian pacific. valiant says they have defaults from bondholders. this is a result of the delay in the annual filing because of the accounting practice called into question. and novartis is looking to

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welcome back. the world's largest carmakers are fighting for market share in china. phil lebeau joins us live from the beijing auto show to talk about the stake in the market. good morning, phil. >> reporter: hi, sarah. what's at stake here? suv sales. this has become the world's largest market for suv sales surpassing the u.s. last year. so as you take a look at sales the first quarter, a couple things to keep in mind. china sales, auto sales overall still growing faster than in the u.s. what's in particular interest is what's happening in the suv market. suv sales last year up 52%. and we can believe how popular they are when we walk around the beijing auto show today. we saw suvs all over the place. and now that this has become the top market for suvs, a lot of focus is being paid attention to the lower end of the market. because that's where the chinese brands are succeeding. bringing in entry-level suvs at half the price of gm, ford,

mercedes, some of the established automakers that have long dominated this market. we caught up with the head of product development for general motors, mark royce, and asked him whether or not this resurgen resurgence, if you will, by the chinese brands is a threat to gm's profits here in china. >> there is big demand for suvs of lower price models but there's also high-quality demand and real value in the features and the connectivity that we offer on our suvs. so we're going to differentiate ourselves on quality, the connectivity and reliability and durability. and we'll be competitive in the price part of it, too. >> remember, as you look at shares of general motors, this is gm's largest market in the world that has surpassed the u.s. in terms of volume. not the most profitable but is the largest market and its suv sales last year, up something like 40%, guys. so when you look at this market, keep in mind the suv has now

become the most important vehicle to watch over here in china. >> i'm just curious, phil, as you talk to the executives at the automakers how they are balancing the near-term risks in china. we talk about the slowest growth in decades as they transition and having the same long view of bullishness you cannot fight with the population size and the fact that this is the emerging market of the future when it comes to consumers. you know, sort of a dichotomy there. >> they are still very bullish on the chinese consumer. there are really two markets here when you talk to economists, they mention seeing industrial slowdown here in china. and that's a concern about whether or not it spills over and it impacts the chinese consumer. because they are still buying. that's what the executives for the automakers are focused on, the fact that the consumer is still out there buying it. particularly the suvs. because that's the most profitable segment, if you will,

for the automakers overall. the niche high-end luxury models are great high profits but it's a very small part of the market. the suvs, that's really the bread and butter for the automakers. >> phil, thank you so much for joining us this morning. phil lebeau reporting live from beijing with some lovely background beijing ambience as well. still to come on "worldwide exchange," the top political stories including the unusual cruz/kasich partnership to stop trump. but first as we head to break, here's today's national forecast from the weather channel's kelly kass. good morning, sarah and wilfred. we're getting a little bit of a break in terms of severe weather here in the middle of the country. we have really big hail reports and a few tornado reports along the kansas/nebraska border. we are boing to be watching out for some severe weather here in northern illinois, that does include chicago. the main threat will be damaging wind gusts, better than 60, perhaps even quarter-sized hail working through southern michigan as well.

and your last warm day in chicago, 81 degrees. not bad in the northeast. mostly dry. a couple of showers along the gulf coast and down into texas and louisiana. dry weather for southern california but more snow across the sierra. we saw quite the healthy snow for the ski resorts there over the weekend. more on the way. warm weather all across the eastern half of the country, at least for now, but colder air starts to sink on down in the northeast. and that's a look at your national weather.

president obama is in hanover today meeting with angela merkel. he's been selling a trade partnership with europe. let's listen to the president. >> thank you for being a champion of our alliance. on behalf of all of us, i want to thank you for your commitment to freedom and human rights, which is a reflection of your own inspiring life. i truly believe you have shown us the leadership of steady hands. how do you call it, the merkel rata? over the last seven years i've relied on your friendship, counsel and your firm moral compass. so we very much appreciate your chancellor, angela merkel. to the members of the prime minist

minister, mayor, extinguished guests, people of germany, i'm especially pleased to see the young people here from germany and across europe. we also have some proud americans here. there you go. i have to admit that i have developeded a special place in my heart for the german people. back when i was a candidate for this office, you welcomed me with a small rally in berlin where i spoke of the change that's possible when the world stands as one. as president you've treated me and michelle and our daughters to wonderful hospitality and offered me an excellent beer and croon. we have hosted our delegation here in hannover. my only regret is that i have never been to germany for

oktoberfest. so i have to come back and i suspect it's more fun when you're not president. so -- my timing will be good. as always, i bring the friendship of the american people. we consider the german people and all of our european allies to be among our closest friends in the world. because we share so much experience and so many of the same values. we believe that nations and peoples should live in security and peace. we believe in creating opportunity to lift up, not just the few, but the many. and i'm proud to be the first american president to come to europe and be able to say that in the united states, health care is not a privilege, it is now a right for all. we share that as well. [ applause ]

perhaps most importantly, we believe in the equality and inherent dignity of every human being. today in america people have the freedom to marry the person that they love. we believe in justice that no child in the world should ever die from a mosquito bite. no one should suffer from the ache of an empty stomach. that together we can save our planet. and the world's most vulnerable people from the worst effects of climate change. these are things that we share. born of common experience. this is what i want to talk to you about today, the future we are building together, not separately but together. and that starts right here in europe. and i want to begin with an

observation that given the channels that we face in the world and the headlines we see every day, it may seem improbable. but it's true. we are fortunate to be living in the most peaceful, most prosperous, most progressive era in human history. that may surprise young people who are watching tv or looking at your phones and it seems like only bad news comes through every day. but consider that it's been decades since the last war between major powers. more people live in democracies. we're wealthier. and healthier. and better educated. with the global economy that is lifted up more than a billion people from extreme poverty and created new middle classes from the americas to africa to asia.

think about the health of the average person in the world. tens of millions of lives that we now save from disease. and infant mortality. and people now living longer lives. around the world we're more tolerant with more opportunity for women and gays and lesbians as we push back on bigotry and prejudice. and around the world there's a new generation of young people like you that are connected by technology and driven by your idealism and wanting to start new adventures and advance human dignity. if you had to choose a moment in time to be born, any time in human history, and you didn't know ahead of time what

nationality you were or what gender or what your economic status might be, you choose today, which isn't to say that there is not still enormous suffering and enormous tragedy and so much work for us to do. it is to remember that the trajectory of our history over the last 50 to 100 years has been remarkable. and we can't take that for granted and we should take confidence in our ability to be able to shape our up destiny. that doesn't mean we can be complacent because today dangerous forces do threaten to pull the world backwards. and our progress is not inevitable. these challenges threaten europe

and they threaten our transatlantic community. we're not immune from the forces of change around the world. as they have elsewhere barbaric terrorists have slaughtered innocent people in paris and brussels and istanbul and san bernardino, california. and we see these tragedies in places central to our daily lives. an airport or cafe, a workplace or a theater, and it unsettles us. it makes us unsure in our day-to-day lives. fearful, not just for ourselves but those that we love. conflicts from south sudan to syria to afghanistan have sent millions fleeing seeking the relative safety of europe shores. but that puts new strains on

countries and local communities. and threatens to distort our politics. russian aggression as flagrantly violated the territory of the independent european nation, ukraine, and that unnerves our allies in eastern europe. threatening our vision of a europe that is whole, free and at peace. and it seems to threaten the progress that's been made since the end of the cold war. slow economic growth in europe, especially in the south, has left millions unemployed, including a generation of young people without jobs. and who may look to the future with diminishing hopes. and all these per sis tint challenges have led some to question whether european integration can long endure, whether you might be better off

separating off, re-drawing some of the barriers that exist in the 20th century. across our countries, including the united states, a lot of workers and families are still struggling to recover from the worst economic crisis in generations. and that trauma of millions who lost their jobs and their homes and their savings is still felt. and meanwhile, there are profound trends underway that have been going on for decades. globalization, automation, that in some cases have depressed wages and made workers in a weaker position to bargain for better working commissions. wages have stagnated in many as advanced countries while other costs have gone up. inequality has increased.

and for many people, it's harder than ever just to hold on. this is happening in europe, we see some of these trends in the united states and across the advanced economies and these concerns and anxieties are real. they are legitimate. they cannot be ignored and may deserve solutions from those in power. unfortunately, in the vacuum, if we do not solve these problems, you start seeing those who would try to exploit the fears and frustrations and channel them in a disruptive way. a creeping emergence of the kind of politics that the european project was founded to reject. an us versus them mentality that tries to blame our problems on the other. somebody who doesn't look like

us or doesn't pray like us. whether it's immigrants or muslims or somebody who's deemed different than us. you see increasing sbol raps in our politics. intolerance in our politics. and loud voices get the most attention. this reminds me of the poem by the great irish poet w.b. yates where the best lack all conviction and the worst are full of passion intensity. so this is a defining moment. and what happens on this continent has consequences for people around the globe. if a unified, peaceful liberal,

pluristic free market europe begins to doubt itself, begins to question the progress that's been made over the last several decades, then we can't expect the progress that is just now taking hold in many places around the world and will continue. instead, we will be empowering those who argue that democracy can't work. that intolerance and tribalism and organizing ourselves along ethnic lines and

aauthoritarianism, those are the things that the challenges of today demand. so i've come here today to the heart of europe to say that the united states and the entire worldneeds a strong and prosperous and democratic and up united europe. [ applause ] and perhaps you need an outsider, somebody who is not european to remind you of the magnitude of what you have achieved. the progress that i described was made possible in large measure by ideals that originated on this continent in a great enlightenment and the founding of new republics.

of course, that progress didn't travel a straight line. in the last century, twice in just 30 years, the forces of empire and extreme nationalism on s consumed this continent and places were reduced to rubble. tens and millions of women, men and children were killed. but from the ruins of the second world war, our nations set out to remake the world. to build a new international order and the institutions to uphold it. a united nations to prevent another world war in advance of a more and lasting peace. international financial institutions like the world bank and the international monetary fund to promote prosperity for all peoples. a universal declaration of human rights to advance the

inailenable rights to the human family. and here in europe, giants like chancell chancellor, set out to help out the commerce and trade. in the early days, european dream for few and today it is a that in cess necessity for all of us. [ applause ] and it wasn't easy. old animosities had to be overcome. national pride had to be joined with a commitment to a common good. complex conditions of sovereignty and burden up sharing had to be answered. and at every step, the impulse to pull back for each country to go its own way had to be

resisted. more than once skeptics predicted the demise of this great project. but the vision of european unity soldiered on and having depended europe's freedom in war, america stood with you every step of this journey. a marshal plan to rebuild, an airlift to save berlin. a nato allowance to defend our way of life. america's commitment to europe was captured by a young american president, john f. kennedy, when he stood in a free west berlin and declared freedom is indivisible. and when one man is enslaved, all are not free. with strength and resolve in the power of our ideals and a belief in the unified europe, we didn't

simply end the cold war. freedom won. germany was reunited. you welcomed new democracies into an ever closer union. you may argue over who's football clubs are better. vote for different singers on eurovision. but your accomplishments, more than 500 million people speaking 28 languages, 19 with a common currency, in one european union remains one of the greatest political and economic achievements of modern times. [ applause ] yes, european unity can require

frustrating compromise. it adds layers of government that can slow decision making. i understand. i've been in meetings with the european commission. and as an american, we're famously disdainful of government. we understand how easy it must be to vent at brussels and complain. but remember that every member of your union is a democracy. that's not an accident. now remember that nato is as strong as it has ever been. remember that our market economies as we saw this morning are the greatest innovators of

wealth and opportunity in history. our freedom, our quality of life, remains the envy of the world. so much so that parents are willing to walk across deserts, across the seas on make-shift rafts, risk everything in the hope of giving their children the blessings that we, that you enjoy. blessings that you cannot take for granted. this continent in the 20th century was at constant war. people starved on this continent. families were separated on this continent. and now people desperately want

to come precisely because of what you've created. you can't take that for granted. today more than ever a strong united europe remains a necessity for all of us. it's a necessity for the united states because europe's security and prosperity is inherently indevisable from our own. we can't cut ourselves off from you. our economies are integrated, our cultures are integrated, our peoples are integrated. you saw the response of the american people in paris and brussels. it's because in our imagine nations, this is our cities. a strong united europe is a necessity for the world because and integrated europe remains vital to our international

order. europe helps to uphold the norms and rules that can maintain peace and promote prosperity around the world. consider what we have done in recent years pulling the global economy back from the bring of depression and putting the world back on the path of recovery. a conference that has cut off every single path of iran to a nuclear bomb. part of a shared world without nuclear bombs. in paris the most ambitious agreement in history to fight climate change. [ applause ] stopping in west africa saving countless lives -- stopping

ebola in west africa saving countless lives. up in of those things -- none of those things could have happened if i, if the united states, did not have a partnership with a strong and united europe. [ applause ] it wouldn't have happened. that's what's possible when europe and america and the world stand as one. and that's precisely what we're going to need to face down the very real dangers that we face today. so let me just layout the kind of cooperation that we're going to need. we need a strong europe to bear its share of the burden working with us on behalf of our collective security. the united states has an

extraordinary military. the best the world's ever known. but the nature of today's threats means we can't deal with these channels by ourselves, challenges by ourselves. right now the most urgent threat to our nations is isil and that's why we are united in our determination to destroy it. and all 28 nato allies are contributing to our coalition, whether it's striking isis targets in syria and iraq or supporting the air campaign or training local forces in iraq or providing critical humanitarian aid. and we continue to make progress. pushing isil back from territory that it controls. just as i approved additional support for iraqi forces against isil, i have decided to increase u.s. support for local forces fighting isil in syria. a small number of american special operations forces are already on the ground in syria and their expertise has been critical as local forces have

driven isil out of key areas. so given the success, i've approved the deployment of up to 250 additional u.s. personnel in syria including special forces to keep up this momentum. the they are not going to be leading the fight on the ground, but they will be essential in providing the training and assisting local forces as they continue to drive isil back. so make no mistake, these terrorists will learn the same lesson as others before them have, which is your hatred is no match for our nations united in the defense of our way of life. and just as we remain relentless on the military front, we're not going to give up on diplomacy to end the civil war in syria because the suffering of the syrian people has to end and that requires an effective political transition. [ applause ]

but this remains a difficult fight and none of us can solve these problems by ourselves. even as european countries make important contributions against isil, europe including nato can still do more. so i've spoken to chance lllor merkel and have spoken to the prime ministers of great britain and italy and syria and iraq. we need more nations contributing to their campaign. we need more nations contributing trainers to help build up local forces in iraq. we need more nations to contribute economic asis the answer to iraq. so it can stabilize liberated areas and break the cycle of violent extremism so that isil cannot come back. these terrorists are doing everything in their power to strike our cities and kill our citizens. so we need to do everything in our power to stop them. and that includes closing gaps

so terrorists can't pull off attacks like those in paris and brussels. which brings me to one other point, the europeans like americans cherish your privacy. and many are skeptical about governments collecting and sharing information for good reason. that's skepticism that is healthy. germans remember e their history of government surveillance. so do americans, by the way. particularly those who were fighting on behalf of civil rights. so it's part of our democracy to make sure our governments are accountable. but i want to say this to you young people who value their privacy and spend a lot of time on their phones, the threat of terrorism is real.

and the united states that i've worked to reform the surveillance programs to make sure they are consistent with the rule of law and upholding laws like privacy. by the way, we include the privacy of people outside of the united states. we care about europeans' privacy. not just americans privacy. but i also in working on these issues have come to recognize security and privacy don't have to be a contribution. we can protect both and we have to. if we truly value ourselves,

then we have to share the information we have within europe as well as between the united states and europe. and i will insist that we stand united together. that means standing with the people of afghanistan as they build their security forces and push back against violent extremism. it means more ships needed to shut down criminal networks profiting by smuggling desperate families and children. and that said, nato's central mission is and always will be our solemn duty, our article 5 commitment to our common defense. that's why we'll continue to bolster the defense of our front line allies in poland and romania and the baltic states. so we have to both make sure that nato carries out its traditional mission but also to meet the threats of nato's

southern flank. we have to defend the security of every allie. that's why we need to stay nimble and make sure our forces are inoperable and invest in new capabilities like cyber defense and missile defense. that's why every nato member should be contributing its full share, 2% of gdp, toward our common security. something that doesn't always happen. and i'll be honest, sometimes europe has been complacent about its own defense. just as we stand firm in our own defense, we have to uphold our most basic principles of the international order, and that's a principle that nations like ukraine have the right to choose their own destiny. remember that it was ukrainians, many of them your age, reaching out for a future with europe that prompted russia to send in its military. after all that europe endured in

the 20th century we may not allow borders to be redrawn by brute force in the 20th century. so we should work to consolidate its democracy and modernize its forces to protect its independence. and i want good relations with russia and have invested a lot in good relations with russia. but we need to keep sanctions on russia in place until russia fully implements the agreements that chancellor merkel and others have worked so hard to maintain a path for a political resolution of this issue. and ultimately it is my fervent hope that russia recognizes the true greatness, comes not from bullying neighbors, but by working with the world, which is the only way to deliver lasting economic growth and progress to the russian people. now, our collective security

rests on a foundation of prosperity. so that brings me to my next point. the world needs a prosperous and growing europe, not just a strong europe but a prosperous and growing europe that in generates good jobs and wages for its people. as i mentioned before, the economic anxieties many feel today on both sides of the atlantic are real. the disruptive changes brought about by the global economy unfortunately sometimes are hitting certain groups, especially working class communities, more heavily. and either the burdens of the economy are being fairly distributed, it's no wonder the people rise up and reject globalization. if there are too few winners and too many losers as the global

economy integrates, people are going to push back. so all of us in positions of power have a responsibility. as leaders of government and business and civil society, to help people realize the promise of economic and security in this integrated economy. and the good news is we know how to do it. sometimes we just lack it. the political united states can't be the sole engine of global growth. and countries should not have to choose between responding to crises and investing in their people. so we need to pursue reforms to position us for a long-term prosperity and support demand and invest in the future. all of our countries, for example, could be investing more in infrastructure. all of our countries need to invest in science and research and development that sparks new innovation and new industries. all of our countries have to

invest in our young people and make sure they have the skills and the trains that they need to adapt to this rapidly changing world. all of our countries need to worry about inequality and make sure that workers are getting a fair share of the inkrecredible supply chains they are producing. but if you are really concerned about inequality, if you are really concerned about the plight of workers, if you're a progressive, it's my firm belief that you can't turn inward. it is not the right the answer. we have to keep increasing the trade investment that supports jobs as we're working to do between the united states and the eu. we need to keep implements

reforms the our banking and financial systems so that the excesses and abuses that trigger if financial crisis never happen again. but we can't do that individually nation by nation because finance now is transnational and moves around too fast. if we are not coordinating between europe and the united states and asia, then it won't work. as the world's been reminded in recent weeks, we need to close loopholes that allow corporations and wealthy individuals to avoid paying their fair share of taxes, through tax havens and tax avoid dance. trillions of dollars that could be going to pressing needs like education and health care and infrastructure. but to do that we have to work together. here in europe as you work to strengthen your union, including through labor and banking reforms and by ensuring growth across the eurozone, you'll have the staunch support of the

united states. but you'll have to do it together because your economies with too integrated to try to solve these problems on your own. and i want to repeat, we have to confront the widening economic inequality but that is going to require collective work because capital is mobile and if only a few countries are worries about it, then a lot of businesses will head towards places that don't care about it quite as much. for at lot of years it was thought that countries had to choose between economic growth and inclusion. now we know the truth. when wealth is increasingly concentrated among the few at the top, it's not only a moral challenge to us but it actually drags down a country's growth potential. we need growth that is broad and lifts everybody up.

we need tax policies that do right by working families. and those like me who support european unity and free trade also have a profound responsibility to champion strong protections for workers. a living wage and the right to organize and a strong safety net. and a commitment to protect consumers in the environment upon which we all work hard so everyone gets a fair shot. and that's especially true for young people like you with education and job training, quality health care and good wages. and that includes making sure there's equal pay in equal work for women. [ applause ] the point is, we have to reform many of to our economies, but the answer is not to start

cutting ourselves off from each other. rather, it's to work together. and this brings me back to where i began, the world depends upon a democratic europe that upholds the principles of plurism and diversity and freedom that are our common freedom. as free peoples, we cannot allow the forces that i've described, fears about security or economic anxieties to undermine our commitment to the universal value that is are the source of our strength. democracy, i understand, can be messy. it can be slow and frustrating. i know that. i have to deal with a congress. we have to constantly work to make sure government is not a collection of