. >> mario draghi once the eurozone is not out of the words yet.obel laureate after he publishes a poem in which she accuses israel of threatening global security. -- in which he accuses israel of threatening global security. ♪ >> confronting the injustices of the past, a landmark trial has opened in turkey. two retired generals involved in a coup over 30 years ago, both symbols of a time when the military dominated turkish politics. there ex-president kenan evren and the former air force chief tahsin sahinkaya, aged 94 and 87, are being tried in absentia due to poor health. they face life behind bars if convicted of committing crimes against the state. a number of victims held a vigil and outside the courthouse in ankara. many one other former junta members tried as well. thousands were arrested during the coup and hundreds died. >> for decades, the military held a very special position in a turkey. they saw themselves as guardians and defenders of secularism in state tolerable to is honest movement's spirit 1960 to 1980, they staged three coups.

. >> mario draghi once the eurozone is not out of the words yet.obel laureate after he publishes a poem in which she accuses israel of threatening global security. -- in which he accuses israel of threatening global security. ♪ >> confronting the injustices of the past, a landmark trial has opened in turkey. two retired generals involved in a coup over 30 years ago, both symbols of a time when the military dominated turkish politics. there ex-president kenan evren and the former air force chief tahsin sahinkaya, aged 94 and 87, are being tried in absentia due to poor health. they face life behind bars if convicted of committing crimes against the state. a number of victims held a vigil and outside the courthouse in ankara. many one other former junta members tried as well. thousands were arrested during the coup and hundreds died. >> for decades, the military held a very special position in a turkey. they saw themselves as guardians and defenders of secularism in state tolerable to is honest movement's spirit 1960 to 1980, they staged three coups.

and mario draghi says he's ready to counter act the upside risk.resident also calls for a growth compact despite a europe-wide austerity push. >> these measures need to be complemented now by growth-enhancing structure reforms to facilitation entrepreneurial activities, the start-up of new firms and job creati creation. >>> welcome back. nice to have you here on "worldwide exchange." if you're just joining us, let's take a look at the u.s. futures and see how we're setting up for the trade on wall street. the nasdaq up by 48, the dow up by 88, the s&p 500 up by 12. seeing a bit of a loss on the nasdaq, by nearly 9 points. concerns about the earnings report, ross. they came out with blowout numbers after the bell, and we saw the stock rise in the after hours session. in terms of some of the sej tors we were watching, it was teleco industrials and financials that were the top gainers on the s&p yesterday. >> meanwhile earnings are helping us high today. a second day of bounceback from the 3 1/2 month low we hit on monday. ftse up a third of a percent

what they're really focused on is stimulus measures in the eurozone, draghi's next move. i don't think there's a huge correlation between growth measures in beijing and the european markets. >> next move from draghi is no move, isn't it? one could argue here that whether you're looking at the u.s. or anywhere, we've had market's helped by a liquidity rush and maybe what we're seeing now is the benefits of that liquidity rush starting to peter out. >> my sense is that we're right on the threshold right now. the market is at critical levels. if we manage to recover from these levels, then i think you're right, the previous measures taken by draghi will be sufficient. if we cross these levels and the market weakens from here, the next step will be to test him and to see what his game plan would be at the next stage of the crisis. so we don't know the answer to that question, but we'll find out soon enough in the next week. >> it's interesting you say eurozone will play a are more important role in determining market sentiment. does that mean if nothing comes out of the euroz

reserve a conference very recently that you think we're still in a crisis but your successor mario draghi of the e.c.b. said that the worst of the euro crisis is over is the worst really over you know i was alluding to the in my order still you go what happened happened in or seven we have now. structural adaptation of the advanced economy you know over the last thirty five years we had to eat in america crazies the african craziness we had the formation of of all the socialist part of the world in the market economy. new i would say very powerful economies and we are not observing in the thing in your advanced they could only since also have the advanced economy themselves have to adapt their founder for sector started with the euro the financial turbulence. and so forth and also all of the award fiscal policies i really trust that it is a global crises of you advance they couldn't meet and of course the your beard had their whole in a difficulty and have to work on the old governance economy governance well terms of the euro crisis is the worst over are we out of the woods at this point

draghi is going to initiate another round of ltro. if they don't get any structural reforms, but i bet they do, i think things will be a little more calm this summer. >> here's the deal. to bob's point we won't have the crisis we had last year. however, i think it will be tough. i'll add china to that mix. china's slowing and slowing more than people think is going to keep pressure on the markets during the summer. >> i agree with that, steve. let me add two other points why we might not have the big crisis this summer. number two, qe-3 is definitely back on the table. we saw that this morning. disappointing gdp numbers and gold goes up $10 immediately. good heavens, the markets up on a day they shouldn't be. and real estate's back in a big way. >> i agree with you. ivy snyder on "fast money" she changed her target up 1% in prices versus down 1%. the other interesting thing is draghi came out and said inflation's not really that big a problem. to me that's a signal that he's getting ready again to do an ltro or some other letters tyle

let's remind everybody back two weeks ago mario draghi said the worst was over with the financial crisisi don't think anybody told spain or portugal, because both countries returned to the money market today and both will have to pay a higher interest rates on borrowing that money. the $1 trillion euros flooded the european financial system in the past six months, a cheap money. the idea was the banks would then pass that on to the likes of the consumers and businesses. but the banks held on to that money. many thinking that it really did not work. listen to this. >> the money has not really gotten into the real economy. it is corporate investors that we need to see investing, not the financial guys. that will not happen until the overall euro zone problems -- that the resolutions are more insight. if corporate investors are holding back and banks are holding back because they certainly still do see risks. >> a lot of central banks from the core of the euro zone have been applying pressure on the ec be to release to announce an exit strategy from the crisis measures. everybody thinks the

people in the world we have to talk about a few of the honorees they include christine legarde mario draghi mario monti ron paul and we can never get to include warren buffett and you can just guess who penned the write up to go along with mr buffett if you can take a look it is true that our for the sport of warren buffett for example let me tell you what is with all the economic. but you don't vote for you for the. for in war both of those lower tax rate than a secretary. these guys are still in bed together so obama rode warren buffett's most logical person right as far as corny capitalism is concerned though i think obama's kind of getting played by warren buffett right before his a book part. to leave theory of barack obama. who is is is selling the high seas and he is loving warren buffett have his way with him and grok obama should basically grope her and do something realistic and so people want to sort of basically just do whatever warren buffett wants and play to the tune of one buffet which is like i'm just a little paper boy we do the whole yesterday and obama didn't have more b

reserve a conference very recently that you think we're still in a crisis but your successor mario draghi of the e.c.b. said that the worst of the euro crisis is over is the worst really over there i was alluding to the. what happens happened in all seven we have now all structural adaptation of the advanced economy you know over the last thirty five years we had really crazy yes we can craziness we had the constellation of of all the socialist part of the world in the market economy we. knew were i would say very powerful economies and we were not observing anything in your advanced economy since also the advance they could live with themselves have to adapt their financial sector and it started with the you know the financial turbulence lehman brothers and so forth and also all of the old fiscal policies i cross that it is global crises of the advance they couldn't meet and of course the your beard have a hole in it if we can clear left of the old governance economy governance well terms of the euro crisis is the worst over are we out of the woods at this point i think that we know it i

in force by mario draghi the president as you can see the foot. well the dash really is a traction one point seven percent in negative territory is based on all we see how it is doing is still declining it's not moved so much it will actually be a bit of a for the global market is that we know it's been taking center stage race that they keep on the topic of natural resources not despite all the efforts by the russian government to cut natural resource tendency local business days are getting even more addicted to the will to keep the late pope was a natural agency for financial studies this was seen among small and medium sized businesses the agency has poll people from around two thousand and fifty two percent said prices were the most important of all their companies and that's compared to forty seven percent a year ago and i was in on something completely different which took about barclay for a minute or two now i probably i.p.o. could take place in the russian market. because his top spot to my maker also says that they are prepared to offer

influential people in the world we have to talk about a few honorees they include christine legarde mario draghi mario monti ron paul and we can never forget to include warren buffett and you can just guess who penned the write up to go along with mr buffett if you can take a look it is true that part for the sport of warren buffett for example let me tell you what is with all the economic. but you don't vote for you for the right for in war both pays a lower tax rate than a secretary. if guys are still in bed together so obama rode warren buffett's most liberal person right up as far as corny capitalism is concerned though i think obama is kind of played by warren buffett right. to leave theory and barack obama. is is is still in the high seas and he is living warren buffett had his way with him and broccoli bamma should basically grow care and do something realistic and something that people want to sort of basically just do whatever warren buffett launch and play the tune of one buffet which is like i'm just a little paper boy with the whole. i don't want to have more and better writing his w

mario draghi has bar moret rett more% reticent. the economy minister has reit eighted that he wants ecb intervention. we know the economy minister himself is meeting with draghi today. the ecb won't confirm the topic of conversation, but i'll give you one guess. back to you. >> thanks very much for that. so the eurozone crisis is worsening. that stock warning comes from george soros speaking in denmark. he's being a cuing european lawmakers having misunderstood the problem because they're treating it as a miss cal crisis despite the fact it began as the banking crisis in the u.s. plenty to talk about came. why don't we start with those comments from soros. is he right that the problem for the eurozone has been misdiagnosed? >> the response to the crisis is really more important. to say that it was tied to the housing market, i would say i would not agree with. what i would agree is that we have substantial competitive divergence in europe and this competitive divergence has created huge imbalances in current accounts and as the pre

will draghi come to help the spanish banks if they get into more and more trouble? >> the spanish banks are the cahas in trouble. >> the big banks, the santanders of the world. their stocks got crushed today. >> they did get crushed today. what's important for spain, they relax some of the rules as far as fiscal tightening. they shouldn't be doing the amount of tightening they are doing. yes, long term we have to come to term with our long-term fiscal obligations. >> spain is not getting its budget through its own parliament. do you expect the euro to collapse? i heard people today talking about the euro collapsing to 1-1 against the dollar. i have heard this talk before. it has not come to pass. >> part of the reason it hasn't come to pass is because the ecb has been very vigilant in not giving the same types of assistance that the fed has given what we have seen from the ecb, while they will say one thing if it gets bad enough, they will become creative and do something else. >> that's fair enough. michael, let me go back to this when the president of the united s

. >> well, you know, isn't it amazing that what mario draghi's done and how quiet the germans have been? they're basically at this point saying, you know, they don't want to come out and admit that mario's doing the right thing. but the bottom line is, they understand that there's going to have to be a lot more liquidity. >> you say you think europe's going to get a lot worse. you also expect this to be their massive restructuring. when do you think things will start to get better? >> you know, i would say -- i would answer that by saying when the euro gets to parity, things will start getting a lot better. now, my call is that the euro will be at parity before the end of the year. >> we have the same call. i put that out as one of my predictions. >> right. >> i've been shocked at how well the euro has held up against the dollar. all i keep hearing from my sources in europe is that there's so much repatriation of euros it's artificially being inflated on the banking side but it can't last forever. what's it going to take for the bottom to drop out of the euro against the dollar? >> i th

and draghi has shown himself to have this bold streak about him will, and i think he could surprise people this week. >> it would be bold. ? last month we had the ltro, so to some extent he hip been hampered by throwing too much at one time. this month, that isn't on the horizon. we've had two big slices of ltr chlt on, i think it's unlikely for that to come straight back to the party. if you wanted to send a message that he is concerned there is a big problem now, pot just in southern europe, that's the crucial point, the german economy with just about all the data in april has been pretty poor, i think this could be the moment. >> if your prediction is true, what would that cut do to euro rates? how much pressure could the euro come under? >> i think it's a bit neutral for the euro. as a currency, again, interestingly, most commentator strategists, et cetera, this year have been looking for a much lower euro. peer we are at 132 plus. the euro has weakened against sterling a little bit this year, but otherwise it hasn't performed too badly. i think the problem about getting too bearish on

and draghi is a lot less enthusiastic about this than trichet every was.signal to the governments to get the fiscal house in order and reduce their deficits. obviously there's a lot of debate in the market. there are clear doubts about the ecb's commitment and their am you munition available to get involved with the s&p precious program again. lloyds, though, points out that given how much development market policymakers have done already to stem the crisis, why would they stop now. they're looking at this as a spread tightening trade rather than and ongoing deterioration. what is key is that it's a timing game. it's whether the markets will give us time to assess the data in spain to see whether these reforms are actually making a difference and whether they can actually implement the austerity they need. will they be given the time. >> okay, julia, han thanks for . a chief economist is joining us. john, we're looking at pretty extraordinary levels in spain three year low for the ibex, things tough for the ten year yield, that record reported in the cbs m

. >> yeah, i was struck by draghi yesterday saying it would take it a month or two to work out what happened in the ltro money. santander said most is still on deposit at the ecb. very little of that will get into the real economy. >> varies bank by bank. santander will have drawn on the ltro as an insurance policy if it they can't roll over their funding. in the meantime, you're right, they just park it at the ecb. deutsche bank said this morning, although they didn't put any mums on it, they've taken a little bit of ltro money. and i think the argument there seems to be some of the uk banks have done this, as well, the art there seems to be you take ltro funding about order to fund your positions in some of the peripheral countries and then if the eurozone does really collapse, that at least is not a problem for your head office. >> i want to get your views as well now on goldman sachs. there was an interview on c mbs in the u.s. yesterday with lloyd blankfein, he old us they had no plans to step aside as ceo of goldman sachs after an op-ed accused bank executives of losing control of the

. -- draghi does -- dragged the to safety.rew >> they're collecting every bit of data. >> we will findut what happened. clacks been set up a special fund to help presidents. -- residents. some lost everything but are left to be alive. >> i think god had his hand over these apartments. >> a catastrophe. it could have been far worse. >> will be talking about shopping when we come back. >> you like to shop. >> u.s. to help other people shop. >> and new stores are on their way we will soon be able to shop. and looking to become a new homeowner? heidi could land a pad in the most expensive community. for less. it is an inside thing. stay tuned. >> i am out of the loop. i am always out of the loop. see life in the best light. outdoors, or in. transitions® lenses automatically filter just the right amount of light. so you see everything the way it's meant to be seen. maybe even a little better. experience life well lit, ask for transitions adaptive lenses. visit an america's best location near you today to find the authentic transitions brand lenses that fit your life. america's best. best pr

but there will be no qe3 and draghi said don't look for any.into a little slow patch here? >> i think people are seeing ghosts to some degree, joe. you have maximum monetary ease. i mean, the pedal all the way to the floor as hard as possible in both the united states and in europe. you know, the idea that the fed is going to keep short rates at zero through 2014 obviously almost three years from now if they extend it all the way through the end of 2014, is phenomenal, really unprecedented and i don't think there's any scenario under which the ecb begins to in any fashion tighten while conditions are as they are now. so i don't know how you could have a more accommodative monetary framework in both the united states and in europe. so the idea that, as byron said, maybe there won't be qe3 and maybe the ecb won't do even more than it's already done. i just don't think that's a focused way to look at it. you couldn't have a better scenario from the point of view of monetary policy. >> look, we've gone as much as we can do with monetary policy. loo

. >> can mario draghi fix things? >> they gave him six months. what happens after the six months?t use it, we'll be back where we were at the begin ing. >> five years from now will we be going tofr to europe and sayer that iing, wow, that was scary or will you be saying i'm going to greece, i'm going to have to turn toll dars into drachma. >> the problem is the voters, the mass of people never quite bought into. >> and what if they change the political elite. >> right now you're dealing with fragmentation in europe and conflict between germans, greeks, spanish, finnish but also this real tension between the voters and the elite. >> we have to talk france. >> well, french is critical. there's one factor to know and that's in the last couple of years we've seen no less than ten ibt governments in the eurozone essentially be kicked out by vote of professional testing what they don't like. i think there's a good chance france can be another supply in. >> in your heart of heart, don't you think you'll still be using euros in the next five years? >> she's from where they never bought in

i think draghi found out when he heard no third ltro, you're free to short the sovereign over on theuropean side. >> we had a spirited debate yesterday pointing out the direct causations between the easings and the equity market. when the easings stop, the equity markets fall. when they come back, they gallop at a 30% clip. will they be looking at the assets or the markets? >> they admit they're looking at the assets. >> and they have cover because the weather effect helps the economy. why even separate the two. >> a couple of observers point out, who is speaking up for the savers? nobody. nobody. >> rick santelli is speaking up for the savers. as you try to block his deference every step of the way. you say, rick, you're not speaking up for the savers. >> all i tell you and i simply report what the thinking is they feel savers would have been way worse off if the fed had not stepped in, the value of the finance assets they own -- >> the bank cds? >> not bank cds. >> that's what the average person has. >> he does this all the time. the home assets. >> which step in are you talking ab

draghi, you would tell him what? >> i don't immediate need to wh.hey know what to do about that but it's also in thehands of the government and the imf. we had discussions whether we can have additional money coming from the rest of the world to stabilize the situation p. >> and if you were going to handicap that you would say what? >> i think it's going to be interesting because several countries have committed to give money. the the u.s. is not, so they may need more time. >> do you think ultimately the u.s. will give money over? >> i think it will be interesting because money is power. so if they can raise money without the u.s., this may undermine the u.s. influence over the long term. so i think sooner or later, the u.s. will join. >> it's amazing that the one word that always comes to mind both in this country and in europe that would solve so many things is growth. and the kind of things that you're talking about if we could just figure out a bridge to where we were going, if we knew there was going to be growth, it would make it a lot easier

but i think draghi is going to give a stern talking to saying, you've been bought some time.use in order because this crisis is going to come back. two confidential papers were cut out saying that contagion is still lurking out there. >> and pointing out italy in one case specifically, yes? >> yes. that may be too big to save. so it's a problem. >> art, where did everybody go? the retail people, where's the volume? is this a disgrace? our cnbc poll says 37% of people like gold. real estate is more popular. what the heck happened here? >> well, i think going back to the flash crash, people got a little bruised. we've been watching the mutual fund flows. month after month after month, it's coming out. and some structural things like the etfs. the big ones get -- like a spdr. in the old days, they would have to lay that off by trading the 500 underlying stocks. that's where some of that volume's gone. >> art, nice to see you on the balcony today. >>> here's your chance to strike back. in an ideal world, what would you fine the airlines for if you could? tell us. we have your res

draghi. he's going to argue the ball's in the court of the national governments to step up to theplay plate and do structural reforms now. on the other hand, backdoor, i can assure you, there's discussions about how to get money to the spanish banks right now. probably going to come from the efsf, the european financial stability facility or the esm, european stability mechanism, created to make loans essentially to banks and other organizations that needed help. this is supposed to come into effect in july, the esm. the first loans are probably going to go to those spanish banks. that's what i'm hearing this morning. here in the united states, two comments on the earnings situation. did you see what's going on with the hmos? first it was aetna, then coventry and today humana. all reporting higher medical cost ratios. that's the percentage of the premium being used to pay medical bills. they've been going up. more people have been going to the doctor. it's that simple. this has created proble

can i just mention mario draghi?ario has just come out and said we need a growth contact in addition to an austerity compact. and that's basically his way of saying we have to find a way to get more growth over there. how do you do it? you're going to have a financial transaction packet, you're going to have euro bonds. what are you going to do at this point? now you'll see all sorts of tax themes that come out to start paying for this new growth plan. >> bob pasani, as always. jim cramer, over to you. dividends going up, as bob said. multiples low. what's going on? >> hey, i think it sounds like you should buy. but then again, i'm basing it on the fact that those only fit the negative story. let's shift to bonds. then look at what it's doing to the ten-year bund yield. and even though it would make sense to try and tie this to the fed activities of the day, it's hard to do so based on what europe is doing. of course, not to dismiss the notion that would suggest ending in june and the next meeting not until the 19th

mario draghi went out of his way to be as dovish as i possibly could. almost bernanke in style.maybe the germans were persuading the ecb as a whole to get more hawkish because of the money they pumped in. he was saying downside risk to the economy remains and he felt that on the question of whether they were getting more aggressive, he, as president of the ecb, is the one who had the last word on it. this is the man. >> i don't think i'm stepping up my rhetoric on inflation. i think the ecb's always said that -- that the increase increases the price of oil and other commodities to the extent they are passed through, prices, wages, and margins ought to be contrasted. so it's not -- there's nothing new into this. >> and of course earlier on the program, carl, we heard bill gross suggest that not only is there potentially a bernanke put on the market but also an ecb put that neither of those central banks can allow the market to fall too far. they will inject more capital to keep it safe. >> at least he hopes, i think. thanks so much, simon. gary is here with a quick note on europe

hearing as you talk over these last days with european finance ministers and with ecb chief, mario draghi, about what's happening in these economies. >> well, again, i would say that the really most important change that you've seen over the last six months is, i would say the governments of germany and france and the ecb, have a lot of confidence in what the new governments of italy and spain are doing. that's very important because without that it's very hard to get anything to come together and that's very important. and the other thing they've done is, as i've said, they've put in place a better set of tools. they're in the early process still of building the architecture of a set of things that will make the monetary unit work in the long run. but they're in a much better position in terms of this mix of financial tools than they were just six months ago or so. and those are very important things and the combined effects of those actions have been to calm significantly the tensions of markets that you saw periodically in 2010 and 11. but, you know, you can see every day of course the