one that took hundreds of billions of dollars of government support in the united states, in the uk in europe, in japan to support the system. that's not a wild, die nattic enterprise system, if it's relying on that kind of government support when it came under pressure. that's not to say the entire financial system is to blame for at apart when it was under pressure. >> there was a remarkable op ze d in "the new york times" by a je map who just quick goldman sachs awe patiently today. and orchestrated his resignation letter along the lines that essentially was an indictment of this person of goldman sachs for playing in that economy in what he considered to be irresponsible ways or against the interest of the country. do you have any thoughts on this peace? meese? >> well, it's a remarkable change in the past 20 or 15 years. goldman sachs, for instance, has long been the most respected of the investment banks, very sensitive to avoiding conflicts of interest and focusing on their client needs. two things to take an example of that firm, i don't want to pick on them, but they went public. it

in germany, in russia, in the uk and has also worked wore the council of europe. paul has expertise in russia and east european issues, since he did his ph.d. on that particular issue. he has written extensively. let me just -- i'll make a little plug for you, paul. just written "implementing an arms trade treaty" as well as another publication on china's energy and security relations with russia. after paul -- i'd like to turn to matt schroeder who is a senior analyst as the federation of american scientists and a consultant for the geneva-based small arms survey. matt is also a prolific author, and is the co-author of the small arms trade, and the coordinator of the first comprehensive global studies of the authorized trade in small arms and light weapons. so matt will talk a little bit about what is happening in the small arms field. and talk in particular about transparency issues. we will then turn to rachel. rachel stahl, who's a fellow here at the stimson center. a fellow of the managing across boundaries program. and we've asked rachel to look a little bit

it's not just a problem in the uk, it's all over europe. most of germany is the exception. they have been in power for two years. they have another three years before they have the next election. at the same time, you don't get the impression britain rediscovered the economic. the consumer confidence is low. unemployment is rising. it's flat lined. >> how much -- >> i don't know what the right recipe is. >> how much of this is, how much will david cameron say it's not because of our austerity measures. all of europe is sick. it's given the uk a cold. >> he's said that to some extent. he said they were terrible numbers and didn't expect it to be bad. it's the clever political thing to do. you can't blame everything on europe. the point of the policy has been to try to decouple britain emotionally from europe. look, we are different. we are not in the euro crisis. this would wash up on their doorsteps. he's got to play it clever. he can't blame it all on europe. >> is he thinking of creating a stimulus package? >> he said definitely not. he's constantly asked about it. they sa

. >> yeah, the philosophy stands and there is an idea in all of these places in the uk, in the u.s. and europe is not fair, that it's broken and there's a group of entitled elites making plans over here and that the voters don't have enough to say. >> which is similar to what's happening in the united states. i think we should also mention what's going on in france. you now have a runoff between sarkozy and hollande, hollande offering a sharp rejoinder to have sarkozy's policies that he hatched with angela merkel. i wonder, martin, what you think if hollande is elected what that does to the austerities in europe. he has been not secretive about his thoughts and sort of trying to reverse some of those policies. >> well, the problem with the french experiment and the germans to some extent is that they are upholding the single european currency. the differential is that in britain they're not part of the single european currency. so what you have is cameron's arguments is that nobody could have anticipated the euro zone's problems fiscally and financi financially and economically because of the

it's certainly something that is in direct contrast to what's going on in europe and the uk, as well.uestions is last year, i think it was the crisis in europe that really freaked out everyone in america. and particularly the business world and made everyone put a lot of discretionary spending on hold. and i wonder whether what you're seeing in it europe will have a similar effect or do you think the ecb is going to make sure it doesn't become quite as scary as it last year? >> i think you're right. i think what the ecb has done with its ltros is just paper over the cracks in europe. so the european problem is not solved and we are actually bearish on the eurozone economy. but i do think the u.s. is pot completely immune, but it could cope with a deeper recession in the euro zone. although the u.s. economy is doing okay, i think p the recovery is best described as steady rather than spectacular. it does have its own headwinds. and while it will outperform countries in the eurozone and the uk and maybe even japan and canada this year and next, it's still not going to be spectacular and

fed chairman and who know, you might be someday looking at the uk in recession, spain in recession, dutch government out, how much is europe playing into your decisionmaking if at all on the fed board today? >> well, i think they do have to be very careful. you know, bernanke always looks to japan but euro land poses a similar problem in terms of recession certainly enpotential lost decade going forward. you know, i think, brian, this question in terms of the fed is really one of flows versus stocks, and that's a complicated equation, but a flow statement might basically say who will buy these treasury bonds if the fed doesn't. that would be our view at pimco. you know, the fed's view basically is one of stock, they basically compare it to -- basically compare it to a wine cellar in which a lot of wine has been drunk in the last few months and has to be replaced so i think the argument critically hinges on whether it's a stock or a flow type of situation going forward. >> we'll dive into more. we have a lot to do. a quick break. we're minute as way from finding out exactly what the fed will do and say. it could have a big

i want to tell a story that people from the caribbean from africa, from the uk, from europe, from here in the united states. i was fortunate when i stumbled across the archives, my boyfriend i guess he was at the time, and i said i want to go visit a radio station. i stumbled across -- i had long been a fan of amy goodman. i was introduced to brian in the archives. and literally i walked into the room that's probably half the size of this room that we are in here at hue-man. as you're walking, bear in mind you needed a jacket that was more well-suited and whether you fear. i walked in and on every single site, every seat here they were books, but everything outside of the fault there were tapes. 55,000 of them. big reel to reel cassettes in crisp white cardboard boxes. all have numbers on the side. the numbers didn't mean anything. but when you pull them out and you see the names on the back, malcolm x, rosa parks, so many of those voices that you cry at and say listen to me. listen to what i have to teach you. don't keep me here in this box, take me out, learn from it. one of the recordi

in the united states. there's no great cat the take list outside the united states with china slowing. europe in's session. uk in recession. japan in recession. so there aren't a wll lot of reasons to be optimistic for the rest of the year especially with the uncertainty that john got into with secretary geithner there. the end of the year uncertain i with the elections, with the likely withdrawal of stimulus or runoff of stimulus and questions over what we're going to do on tax policy and fiscal policy will be drags on the economy. so i think that's the big risk for the second half of the year. >> that's interesting because a lot of the folks that i'm speaking to are bullish on the markets and of course they are pointing to the u.s. as a place for growth. so if you you think the u.s. is in trouble or not growing as fast as some might think, certainly that's a problem given what we're seeing in europe and china. >> and i'm not talking about falling off a cliff or recession. but we won't get the rapid levels of growth that we want for see to have a big material impact on the unemployment rate and job creation.

europe we include russia, the uk and the middle east. our ceilings business is actually doing reasonably well in europe.trong position outside the eurozone. we're seeing some challenges in the flooring business which is inside almost entirely inside the euro zone but focused more on the germanic countries, seeing relative normal strength there but it's a balance. >> input costs, what are you seeing? are you seeing a benefit from lower chemical costs, for example, because the inputs to them are lower like nat gas, or are you affected by higher oil prices? >> mostly oil prices. we have pvc going into resilient flooring. saw about $65 million of inflation last year. we're looking at about half that. we will see some inflation this year, but about half. we're able to cover that in price so we're getting price over inflation in both the ceiling and the flooring business. >> great to have you with us. >> matt espe, the ceo of armstrong world industries. josh, i know you've taken a look at this space. have you taken a look at this name? >> i haven't, and i'm not sure why it didn't pop up on my radar. do you gu

in just a. protection of the world from europe what's the latest task of such. for itself by the i.m.f. plans to erect a four hundred billion dollars financial wall all around the uk it's intended to prevent the euro crisis from spreading further due to its serious threat to the global economic recovery but in europe those financial woes are reshaping the political landscape we report on fronts where today is the last day of campaigning before presidential elections on sunday. it hasn't been the perfect marriage that they agreed where it mattered most of the time. a tandem seen as key in the e.u. decision making. that france's relationships with berlin and brussels have hit a rough patch the french election if you look at the campaign in france i think because on the right side there is mrs lippett which is the plan was to reintroduce her for the french franc the french currency christmas all one story negotiate the of the treaty on the fiscal compact incumbent nicolas sarkozy is no exception pledging to freeze france's e.u. funding and bringing back border controls over in the left corner. who roundly rejects europe's budget goal tightening pact people or an easy

in europe. things getting worse by the day. uk joining spain, giving recession ear numbers.nough firewall mining. the biggest ridiculous thing, it doesn't matter. and on other days it does. and and don't get all dismissive. last year the weather so dangerous go outside. and last, i'm hearing people catch themsleves when they use risk on, risk off jargon. they know the silly hedge fund speak and know it doesn't fit our network. more about having something to say. to say i'm smart. back to the weather. we don't know if hurricane season is past or in the eye of the storm or if bob dylan, a hard rain is going to fall. we don't know if we're in a dry season punctuated by storms or if the storms have lost their punch. we know this. the weather will always be us with. but this year, better prepared. whether it be hurricanes or tornadoes or rain. i can only get away with say going like this in a day where europe is benign. the weather will stay awful for years and years to come. it seems to be able this year, exploit sunnier days or move operations that can be moved out of places wh

in europe, yes, we have there are problems in the uk, but we're addressing the problems and perhaps notuld like them to to be addressed. but in the u.s., tell me what they're doing about deficit reduction. nothing. dollar will weaken in the second half of the year and the reason i think it will weaken is the u.s. presidential election will show the plans of both parties and the market will be -- >> stefane is wincing. you did disagree? >> our view is exactly the opposite. >> perfect. that's what makes it interesting. >> yeah, one person being wrong and me being right. >> we think the dollar will go to 120 against the euro. >> how long have you been looking for this view? >> for a long time. >> thank you. >> but the euro -- >> wait a minute. if i can -- >> euro has gone down. >> absolutely. but not the way people out it would. >> and what i agree with you is very much a negative context. if you don't like the euro, you don't like the dollar. and the question which one do you dislike the most. >> haven't we had the maximum poison there europe towards the end of last year and we have the f

in the core. when i was here last time we talked about the fact we thought core europe could grow half a percent this year. with the uk in double dip, spain in double dip and with my guess is what's going to be a lot of reticence in additional liquidity, it's going to have to get a lot worse than better. that probably weighs on consumption, it probably ways on sentiment a bit more. and we may be looking at core europe that ends up being more protracted in terms of slowing growth. >> and if europe is slow, china's going to be slow. very quickly. or slower. >> 30% of chinese economy is exports. 20% of that -- so 6% of china's gdp is tied to europe. china's still going to grow 8% this year. >> not so bad. we'd like that. >> yes, we would. >> richard, thanks so much. >> sure. >> sue. >> let's recap some stories today. humana dropping some 20%. it missed the street's estimates. stock at new 52-week trading highs. e-bay trading at levels not seen since february of 2006. the gap is at levels not seen since august of '01. and dollar tree at all-time high levels back to its ipo in march of 1995. >>> coming up next on "power lu

europe. i might add, the uk is singularly dependent upon lng from qatar, but now in shifting its vision toward the east, india, china, after the catastrophe that took place in japan recently. japan has now emerged as one of the top importers of lng. so again, more markets going to the east and no end in sight in terms of the demand for their product. so they are expanding in all areas, diversifying in science, technology, renewables and making a mark for themselves as a diversified economy with much more than just the energy sector as their focus. thank you. >> thank you, ambassador. next, i would like to hear from ambassador schmere from amman. >> let me just start by saying that just like our neighbors in the gulf, we also have a country which has a growing economy. it has, it's very welcoming to international business and particularly to the united states business. it has a lot of needs. it has a young population and so they're really looking to do exactly what the title of our session here is called and that is diversify their economy to ensure that beyond the area of hydrocarbons they wil

europe? let's not forget you've got spain, the uk back in the recession. s&p downgrading spain.sue may not be right on our windshield but certainly not in the rear-view mirror either. >> scott, i think you put your finger on it. it's the spain and portugal complex. that's fantastic. and if they begin to disappoint for the last 300, that's a second one. joblessness is a third one and the new claims, 389,000,

uk. as far as how women breadwinners are working out relationships. >> in europe in general, what is so interestingnd people don't realize this -- women are outnumbering men in college and universities around the world. in developed countries and also developing countries. really, i think this is going to have a profound impact in countries like -- like middle-aged middle eastern countries. specifically looking at europe, i interviewed some spanish demographers who have made projections about globally what we will look like in 2050, it is going to be a world of educated women and less educated men. one of the things they are tracking is the shifts in the marriage market. what they are finding is that women are marrying more progressive, european men who are willing to adapt to their level of education, and that men are marrying immigrant women from central or south america we still have a more traditional mindset. the way they put it was, you know, men want the kind of women who used to exist, and women want men who still have yet to exist. and i think a lot of people are going to that in this tran

uk, the united states, canada, to the middle east, europe, awesome to look at. we'll leave with you that. see you guys tomorrow. bailey: there are 13,000 cabs ineets of the big apple, but there's only one that pays you. climb into the cash cab,

now moving over to europe a cold vortex is still sitting over the british isles producing severe weather. we have heavy rain warngs posted in the southern uknd that will continue to be in effect until wednesday night. again, it's a very slow moving system so unstable weather should remain into the weekend. and the associated front is producing similar conditions in the western continent. somewhere else has been dealing with stormy weather is the balkan peninsula. things will be clearing up but instead, much of turkey will get stormy on your wednesday. temperaturewise, 9 degrees in stockholm with a low of minus 2. still on the warmer side in moscow with 12 degrees and the same goes for warsaw. out toward the west showery and cool in the iberian peninsula. 15 for both madrid and lisbon. that's it for me now. and here's your extended forecast. >>> our lead stories this hour -- north korea has reacted angrily to the ump n. security council's presidential statement condemning the country's rocket launch last friday. north korea's foreign ministry criticized the presidential statement that accused the north of conducting a long-range missile tes

in the uk. its high-water mark was 245. it's about 24 basis points down from its high mid--month yield. let's look at what is perceived as to where all of the trouble is in europe. the boom. the boom is 22 basis points below the 2.04 two-month high. that sums it up. it seems as though economic growth not being strong enough is one of the issues along with some of the problems in europe again. bill, back to you. >> rick santelli, thank you very much. >>> a decline of about 145 points. negative but off of the worst levels. >> for sure. it is clear that fear is creeping back into the markets. this year's rally is starting to run out of steam. >> how about the new concern of the health of the global economy? that's pushing global prices lower. >> speaking of commodities, the gold index hit a two-year low today. is this a buying opportunity or is it still too early to get back into gold? we take a look at that. >> major commodities and how they are trading. sugar by a frakz. back in a moment. you're watching the "closing bell," first in business worldwide. great shot. how did the nba become the hottest league on the planet? by building on the cisco intelligent netwo

the uk is officially in a recession. growth in china is slowing. europe is probably in a recession.ling this. on friday, we are going to get a report here on the entire u.s. economy. it's a gdp report. expect it to show a slowdown this year. >> allison reporting live from the new york stock exchange. we have a pressing question for political buzz panel this morning. is it presidential to slow jam the news? barack obama did it with jimmy fallon last night. more on that, next. you think you take off all your make-up before bed. but do you really? [ female announcer ] neutrogena® makeup remover erases 99% of your most stubborn makeup with one towelette. can your makeup remover do that? [ female announcer ] neutrogena® makeup remover. at e-trade, our free online tools and retirement specialists can help you build a personalized plan and execute it with a wide range of low cost investments. get a great plan and low cost investments at e-trade. how did the nba become the hottest league on the planet? by building on the cisco intelligent network they're able to serve up live video, and ins

. >> if you were to pick one region in europe that has loss most like our it's not germany, it's not france, isn't it the uk? >> totally. but as i tell our own troops all the time, uk is a place to be very careful. because, it's very seductive because you think we speak the same language and have the same legal system and we do not. by the way, they are very smart, they're very bright and they replicate all the elements of our system. i always feel like the anchovy on a cesar's salad, that there's some reason we're being presented on top of that. >> okay as we head to break, let's take a look at the worst performing group today. that is technology, leading the s&p 500 lower again. we are off the worst levels of the day, to. the nasdaq is still down by 52 points. that downgrade to ibm, sandisk warning certainly not helping things there. next up a stock that's in the green on a very red tape today but do you dare buy shares of aig. how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how

europe. we have two quarters back-to-back now as far as the uk. we know they're in recession. >> spain. >> they are still spending. spanish people are still spending. greeks are still spending. so that's not going to be what holds us back. what would hold us back is a more serious break-up of that entity, the eurozone, judge, and i don't foresee that. >> how about it, murphy. >> i think you can see a rally already in the u.s. you've heard from a lot of european leaders they've started to talk about growth. albeit it's slowing, you have a recession, but the u.s. market is in recovery mode and i think we're going to continue higher. >> coming up, final trades from the halftime team when we come back from the stock exchange. [ male announcer ] while others are content to imitate, we'll continue to innovate. the lexus rx. why settle for a copy when you can own the original? see your lexus dealer. at bank of america, we're lending an in communities across the country. fro omrevi htalielzeping t a neigbrhbooklyn..or.ho financing industries that are creating jobs in boston

uk and u.s., as well. what are investors to do with the growth story in europe bearing in mind the banking sector? it's very hard, recession contraction about .5% across the heart of the eurozone, but they have in essence changed the story around. you know, if liquidity was a handicap to growth elevated. and the investors' confidence still remains very low and the business confidence is improving in some areas still quite weak. areless pessimistic than the worst expectations, which is very good news. having a real economy impact down the line. and hopefully this is a continuation of the trend. the worst expectation might turn out to be a threat across the board for the eurozone, that means there are huge differences between the eurozone with france and germany and others still contracting quite badly. so we looked at spain and we know that this year's going to be quite the year, almost 3% contraction, the spanish economy for this year and given the austerity program that is on the table that means there's more contraction in store for next year, as well. >> yeah. we'll get on to that. good to have

for us to have a decent recovery, but i think in those pmis that we've been seeing, there is something of a disconnect already emerging between the uk and europe. and i think the outlook for domestic demand particularly from the consumer side, about if inflation does continue to come down, i think we'll see a stronger consumer, as well. >> what does this mean for the need for sterling some it's falling a little bit against the dollar after the industrial output data. >> you need a currency strategist to get involved in those small movements, but on a competitive basis, we're in about a right place and certainly no bar to our exports to america. >> jeffrey, thank you very much for your insights. good talking to you. >> always good to have jeffrey on. talks much sense which you don't find many of. bank of england, we are going to take that right decision. 12:00 london i'm. that will be here on the european channel. we are hitting session lows for stocks. weakening again as we go through european trade. advances at the moment only just about being yut paoutpaced by a about 3:2, but the picture is changing. we are down on the session low after two

in the uk, simon, apparently they are still selling it. >> across the entirety of europe almost.l a public holiday. >> easter monday, yes. >> wow. who knew? let's take a look at the markets. >> the easter bunny. >> any way, on the markets, it's been quite a rough open. it's interesting to note that the nasdaq is up 17% even with the losses that we had today. the s&p had a 10% gain. technology might have to decline 7%. then the question becomes, should you be rotating into those. >> right. >> this increases the possibility that we get qe 3. doesn't the market do better under that scenario? to jim paulson's point, higher rates is what he's worrying about. >> that's true. that would definitely get some people's attention. meantime, commodities as the markets are risk off, although a bit of a bounce here. silver is down, as well as copper. i want to show you how wti, brent, nat gas is trading. nat gas may bottom out as we look for places to store it. >> friday's jobs report is seeing a serious slowing but is that enough for the fed to consider more easing? we're going to go to alfred

europe. german business confidence. uk retail sales. the french election this weekend will color trading in the week to come.day and sunday. >> what's interesting this week is that for all of the jawboning, actually in hindsight, this hasn't been too bad of week for europe. this is a session chart. you'll see in particular the spanish market has pulled away to the upside. we're now up 2%. back up of course from those almost march 2009 lows. lot of that is driven by the banks. if i show you where we are overall for the week, for all of the excitement for tuesday and the rally, in fact, we have gained over half a percent. the net net for the week, it hasn't been too bad. that's seen in spanish yields. let's check on the close today. we'll see that we have green across the board. here we go. closeding out for the week in western europe. >> the european markets are closing now. >> spain has done reasonably well. greece going towards that election. the bank's decisions there have been pushed back. a moment ago, i mentioned for the week perhaps it's not been so bad for spain. yields in spain have if anything falle

things keep going, the uk may possibly avert the recession as europe will definitely have one, then the bank of europe probably feels it's done enough now and hold on to any easing inyou get that coming in the second half. inflation is starting to tick back up a little and it's been considerably above their target for years, so there is a limit on how long they can ignore it, how long the governor would have to write to the chancellor. it looks for now policy is on hold. there would be no qe3 as far as the bank of england is concerned. certainly if you look within europe, the pound is starting to make good progress against the other european currency, even the more popular one. >> but, simon, how much higher can the sterling pound actually go? we know it's benefitting from the safe haven flows and that inflation is stickier than expected. what's your target there specifically against the euro? >> one of the other things is the s&p reaffirmed the aaa stimulus. that's going to attract a lot of sovereign welfare money into it. we've seen a few attempts go up to 161 and it doesn't seem to leak it above the 160 level. we know they'd rather have a weaker sterling than to

europe, the economy has shown greater signs of a slowdown. so if one needs the excuse, it will be fair to say rates are much lower in the u.s. and uk, so there is room for that anomaly to be corrected. 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 plu

uk. >> no doubt about it. this is the week that the cracks have really begun to reappear over in europe.ng about the way in which the ecb and the kind of glass half full way was being as dovish as it could be given the tensions with the germans, but that's not the interpretation that a lot of other people have had. it's glass half empty because you didn't get talk of unconditional support and specifically, of course, the nervousness is about spain. that is still the epicenter of what is going on. again, today, you can see the way in which the yields have risen over concern about where they are going to go with that austerity. can they politically get it through? let me show you a six-month chart to indicate we're not back to where we were, but we're getting, as you can see, we're getting up towards the sort of zone before the ltro game through. they flooded those banks in europe with liquidity. not there yet, but clearly major warning signs there, and, of course, the contagion is spreading over to italy. have a look at the yield there. for the week they, too, have tracked higher. there y

uk. operation pentamter 2 is making good progress. local police forces working in close coordination are climbing up the criminal ladder to first identify then capture the people who are bringing in women from asia and eastern europeinst their will in british brothels. the next person in their sights, a man by the name of shu, yu, waning. two months after the original police raid on one of the brothels, it reopens for business but under the ever watchful eye of the police. >> yes, yes. >> the police allow the brothel to reopen in order to gather additional evidence against the man they believe to be the owner, shu yu wang. they also suspect he is a key player in britain's international network. they have been using the extensive closed circuit tv net to work secretly track wang's activities. >> she's the one that went into the -- >> she is banking now. >> yeah? >> they think the woman has been depositing woman from the brothel into shu yupwang's account. >> she has been going to the bank. putting money in the bank in cash. which is common to what they do, if it not her account, she put a phone call into the main, in the organized crime group to say, i have deposited that money and it is definitely in the account.

europe is on president obama's radar but for entirely negative reasons. why on earth would do not think the european -- the uk is even more of a special ally than in the past. britain at shares more with cultural, military values than the you ever will. it is a manufactured entity and it will collapse by all accounts by everyone on the panel. you also said the british press to understand the you. i think the british press are the only people who do understand the eu and that is the problem. herman said if the euro collapses, the whole e you collapses. dear we hope for such a thing or is chris cole well right to that if greece does leave the euro it might become a huge success and a mighty expos for what it is. it is not an entity for the modern world. >> good food for thought. >> our panelists allowed to applaud? >> know, you are not. only at the end of a session. our ltro's and aspirin? i think fevers are starting to come back if they were. chris you are on your own with the anglo-saxon press a suit in the united kingdom. -- issue in the united kingdom. >> muddling through and simply buying time is no longer a sufficient approach for europe. we can debate

in europe and asia, chloe and ross will continue. >> thanks so much for that. we'll hear from david cameron speaking from indonesia. you'll take a break. we'll stay with it as far as the ukll as in asia. >> i'm here today with two objectives, to achieve a step change in trade. ♪ ♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism. the race for the white house, rick santorum drops out. the presumptive candidate. newt still in. >>> a earthquake has struck. a tsunami warning has been issued. it's wednesday, april 11, 2012. "squawk box" begins right now.

in europe. they are suggesting within societe generale, that could be 40% of its existing market capitalization. over to london, how some of the ukl bank of scotland, need to recapitalize in the region of 33% of their existing market capitalization. yes, we have a focus where we are. we have a focus on italy and spain, but the underlying reason for that and the way it may impact this year is on the big banks. that's a calculation how they believe they should recapitalize now without further losses from the italian and spanish bull market. >> we are mirroring the european session. >> let me pay service to this map here. it is really just the spanish market that is negative. the rest of europe has risen. it's not just the power of the oil and gas companies. german automotive rallied in frankfurt. >>> we have to head to gary. >> sometimes the timing on these reports ends up being perfect. simon talked about the equities, talked about a number of markets over there i read something interesting this weekend. if you took a look at the lehman cds prior to 2008 and eventual recovery, 27 cents on the dollar, and you look at cds out there.

europe, looking at green arrow webs as well, except for the ftse. got some uk gdp numbers that show the british kingdom is now officially joining spain in recession.t is one packed road map this morning. apple, of course, is the lead. a massive beat last night on profits, on revenue, margins, iphones. but is it enough to move back into the stock? you will not believe some of these new analyst price targets. >> and caterpillar posting better than expected profits. but it did miss on revenue profits and said while north america is improving, china and brazil slowing. what does that mean overall for industrials? >> and it is fed day, the central bank issues its statement host ago press briefing that will happen this afternoon. some economists predicting it will lower its rate. >> and as the inquiry into news cor corp.'s hacking scandal continues. first, of course, it is a blowout march kwashger for apple. earnings, 1230 a share, more than $2 above estimates. revenues beat forecasts, rising to $39.2 billion. apple says it sold more than 35 million iphones and almost 12 million ipads in the second quarter. and it took them nearly two decades so sell th

europe. and this double dip, which the uk is going through, is a european double dip. if it gets severe, it's going to hit us for sure right intion campaign. >> right. >> and, you know, it's interesting. dan, jeffrey's right. western governments have been slowing down. you've had countries like china experiencing near double dip -- i mean, double digit growth. and yet that even appears to be slowing down. which causes a drag in europe, which causes a drag here. we may have a real slowdown of the economy. and let's say your guy, mitt romney, wins. what happens if we're in another recession? does mitt romney and the republican house and the republican senate then go to america and say, now is the time to engage in deficit cutting austerity measures in the middle of a double dip recession? >> well, part of the problem that jeffrey is speaking to, one of the key causes, is the forces of globalization, that american companies and companies around the world today have access to labor markets and access to goods and services that they have never had access before, at least 10, 15, 20, 30 years ago. so it creates downward pressure on