agreed to that -- the imf and greece agreed to that. when they wanted another couple of years, she saw red, really. she rolled her eyes and does not want to book any more delays because there's been years of indecision, as they see it at the imf. >> briefly, that's not the only dispute you had in brussels. also something to do with the eu budget, a problem there. >> it is very complicated. basically, they want 6.8% in budget spending next year. ministers say 2.79% and not a penny more. tonight, europe -- euro mp's had decided not to take part. on all economic fronts, europe is in crisis. >> a lot to watch their. thanks very much for the update. >> let's move to the markets now. investors did not have much to celebrate this tuesday. our correspondence sent us this report from the frankfurt stock exchange. >> the discussion in brussels about greece weighed on the general mood of the markets, even though there was a bit of a recovery towards the end of the trading day, but investors remain concerned about greece and about the way that the

that's been the imf's position. you cannot realistically expect the money to be paid that's been lent to them. so that's not a loan, that's a gift. >> which is why arguing over whether you push the maturities back two years is a bit of irrelevant. >> there's two things. there's the financing and giving greece an extra two years to get its finances in order. but that of course costs money. so we're arguing about how we're going to finance that extra two years. but i mean that's one thing. but then the other option is how do we actually get the level of debt down and what's being suggested here is the most likely option is effectively giving greece another moratorium before it has to start paying back its mortgage. >> but they're going to get the money, so -- are they? can they give them the money without the eurozone and the imf agreeing? >> i think it would be very difficult. for the imf to pull out, which is a very severe risk here, because what they're saying in private, this is not something we can negotiate over

>> the head of the imf had a bit of a row with him last time they met. she once the interest rate deductions for greece. she wants governments to take a debt write-off and germany will not tolerate that. she wants to greece to reach 120% of g.d.p. debt by 2020. the eurozone system make about 2022. >> just following the debt talks in brussels, thank you. a completely different story on the consumer front with the german export still going strong worldwide. people are entering the christmas buying season ready to spend. >> that according to the latest research showing retail sales could top those of the last few years. >> it's official. the christmas season is open in germany. the country's retailers are looking ahead confidently to the next four weeks. market research indicates people intent to buy more than in recent years. toys and books are expected to be the biggest sellers, but more expensive items should be popular, too. >> it is noticeable that spending on jewelry and home furnishings will be stronger than usual. it is connected to the crisis. when

christine lagarde is head of the imf and the imf needs to get the problem sorted out as quickly as possible regardless of political concerns. so you can see which way they're coming from here. as i say, the mnumber 120% is plucked out of the air. there already appears differences over what the current 2020 is, some are saying 14 #%. but reporting that some of the troy came members are saying this, others saying between 140 and 150. of course they do rely on quite a lot of assumptions about gross tax receipts and spending cuts. >> with a matters isn't the 2020 versus 2022 language. what they're implying is whether the official sector has to take. yesterday we heard smaghi say he thinks a maturity extension will happen. so is that going to extend to the official sector and does it have to in your view? >> made sclurity extension is the first step and what also needs to be done is to finance the extra two years on top of the greek aid program. and that can come through of course through lower interest rates, through debt buy backs even. but we didn't think that debt buy backs in the private se

all it is words for the imf.person for the imf said they're looking for assurances that eu and united states will stand behind these loans. if they don't get it on meeting on december 199h, i think they pull out of it. liz: yeah. >> that would be one of the ways to out of morsi and get real change for liberals the ones marching in egypt, not the thugs and theocrats running the government now. liz: real quick because we're running out of time, why should americans care about this? why is this our fight? look at seeds of change in europe and palestine and israel, why should we care about this? >> because there's global, it is not just regional, it's global. the economic impact of the cash-heavy petrodollars fueling a regionalization of islamism will eventually come back to haunt us because we live in a economic global village that free markets are on the wane. we have to have power to help people establish individualism. it will come back to haunt our pocketbooks and haunt haunt our security. terrorism is still a t

the director of the imf will be having a talk with eurozone finance ministers. "she came to the philippines to talk about the asian economy, but even in manila, christina guard was unable to escape the eurozone debt crisis -- cristina lagard could not escape the debr crisis. the greek debt is expected to spiral to nearly 180% by the end of this year. by next year, it could be pushing 190%. the head of the imf has suggested that greece may require another write-down on its mountain of debt. >> it's a question of working hard, cutting your mind to it, making sure that we focus on the same objective, which is that the country in particular, greece, cannot continue on this unsustainable basis. >> europe is split on whether that is the right course of action. some argue agree should be given more time to get their finances in order, but doing that would come at a hefty price. >> moving to the markets now of the latest discussions on greece did not seem to influence investors. >> markets have a strong start this week. we have this report from the frankfurt stock excha

he will get his money from the imf. the -- lou: wait a minute. let me interject. truly believe that it is of fair statement to say, the united states will have its will with the imf and what it does in this instance. am i wrong? >> well, we will see in a couple of weeks. i think the real struggle here is between morrissey and his idlogical instincts on the one hand and elements of the egyptian security structure, the military and the intelligence service on the other. despite his best efforts, still understand where there bread is buttered. so he has -- his line is less concerned with the outside economic facors than it is with dealing with the mility, which still is not entirely comfortable, to say the least, with his style of government. no doubt what he will try and do is find a way to prop up those elements of hamas that want to keep the struggle going. maybe not today, but one or six months, we will be back here. lou: unfortunately that has been the template for these incidents over the course of history. you t the last word. >> he was walking a very narrow t

. >> and the imf. >> and the imf and everyone else because no one wants war in the middle east commandn and a half dollars a month. lou: the imf reminding today that the good behavior will determine the course of $5 million tranche as they like to refer to this. let's turn to the united nations tomorrow, palestinian to limited palestinian. i love the expression. the united nations general assembly. is this the end of the palestinian-israeli conflict? a two-stage solution upon us? help us out here. >> the end of the palestinian-israeli conflict. we will never live that long. i think that this is just yet another little roadblock, and that think it is very important. because if the palestinians get this sort of karzai in the un are at least the ability to be on the international bodies, what they will do is start accusing israel of war crimes and israel will have to go before the bodies. lou: strong enough to stop this and the general assembly? >> not in the generrl assembly. lou: which means the palestinians have a significant propaganda. >> but only propaganda. it is not significant su

liz claman at the conference in naples, florida where a former imf managing director.ok at the world currencies and how they are caring against the u.s. dollar. $1.27. the euro under pressure today. >> 21 past the hour, your fox news minute. fbi investigators searching the charlotte, north carolina home of paul law brought well last night, feds were seen carrying boxes and taking photographs inside the home of general david petraeus's alleged former mistress. fox news reported broadwell leaked classified information she could have obtained from david petraeus. the saudi arabian man found guilty of conspiring to home the dallas home of former president george w. bush sentenced to life last hour. a jury convicted the failed terrorist of attempting to use a weapon of mass destruction. the former texas tech student was arrested in texas in 2011. out $3.6 million, up platinum what formerly owned by eric clapton. the ultra rare was made in 1987. a perpetual calendar with moon phases, one of the world's ten most significant wristwatches. does your headlines. cheryl: a pair of

directly gives egypt and we have our vote in the imf and further aid in the egyptian economy and they want to kind of enforce the muslim brotherhood as sort of legitimate and serious rulers of this big, serious country. we need to make sure that the democratic election that happens last year was not-- not the first in egypt's history, but make sure it's not the last. and 52-48% an awful lot of egyptians were not voting for the muslim brotherhood and we need to make sure that the citizens of egypt needs to vote again. we shouldn't be fatalistic and say there's nothing to do with it. >> one of the revelations of would be that power would not be overly concentrated in one one hands or institution, and looks like a public statement from the u.s. on this. >> a rather mild rebuke, but i don't think it's the end of the story and i do think that the administration needs to sit back and really come up with a strategy now. and we've seen this movie before with mubarak and the fatal flawed u.s. policies all these years is the reluctance to use leverage which bill correctly described which is eno

they are looking for money from us and from the imf. we trust the egyptians in this case? >> you put your finger on exactly the right thing. egypt now is a different egypt. the president of egypt has to work a very scary tightrope. he is too flimsy to hamas and gaza and the aim of the muslim brotherhood, if he does not have massive infusions of billions of dollars from the u.s., from the imf, the egyptians are hungry and they will go back to the street and ask what they need them for. he is too friendly in the other direction. in other words, he is not tough enough on israel. his own people will rise up and say, what do we need him for. morici is in a very scary situation. what makes this nicer for him, is the u.s. checkbook. cheryl: they are looking for money, obviously. let me ask you another question with regard to israel itself. four decades, israel has been on the defense, obviously. this year more than ever, benjamin netanyahu is setting the stage. in particular, i think the hamas sidedness and now egypt, if you are benjamin netan

the imf looks to stick to its guns. christine lagarde told reuters that any financing program needs to be rooted in reality and not in wishful thinking. julia chatter sly is in athens. the chances of officials not green lighting further aid to greece, is it fair to say at the this stage that's very small? >> i think at the moment we have a situation where you have the imf really pushing for debt write down and on the other people wanting an enter rum solution. so they've never not reached a consensus, so somewhere in the middle is a likely response. they believe they will get 09 or 30 or 40 billion euros, but what ultimate difference will that make. yes, if you judge the situation here compared to what it was in the summer, sentiment has improved. but people are still joking what currency they buy their christmas presents in. i don't think they believe there will be an immediate return to the drachma, but gives you the idea of the uncertainty that remains. and what happens next when they get the cash? the government has

complicated was this kind of different scenarios that we're trying to play out in order to get the imf on board. i think that was the sticking point from the end because the euro group had kind of reached common ground in the phone conference call, they had over the weekend, so it was so it was convincing to give more time. that's what happened. we have a combination of measures. in the early hours of the morning, he said this is not only about money, this is also about putting greece and the whole eurozone on a more sure footing. and i think he's quite right there. this is not only about money, this is about sort of restructuring, reprofiling i think is probably the best word for it of greek debt. p what have we got? first of all, step one is the greek buy back, debt buy back program by the greek government. that has to be put on the road. then all the the other little ducks will come into a row, lowering of the interest rate, a lot more than what was actually speculated about earlier on. and stretching of greek debt up to 15 years and small are components in there that help greece al

dependent on the imf. international opinion will not allow for mubarak, for morsi to consolidate power around him. >> you said mubarak. >> freudian slip. >> what do you think about that? is morsi a long away way from being an islamist dictator? >> in terms of expression, i could speak to you three and four years ago from cairo and freely as i have done just right now and i did speak several times. criticizing measures and policies took and put forward by the president and his government. so in terms of freedom of expression, it's not a huge leap, but let me remind you as well of the fact that at least one chairman was closed in the last weeks in a step which we considered egypt to be negatively imposing a democratic limit on tv channels. however, if we sustain checks and balances, in the moments in which do not have a branch of government, and morsi is the president who has sweeping legislative and once again puts himself out in government. that is a very dangerous mix, which can only lead to the dictators

. >> what the imf would really like to see is, there are real losses here. there are real losses. creditors have lent money that is essentially bad. just like in a bankruptcy sometimes the lenders have to take a haircut. and what the imf would like to do is for the lenders to take a haircut but those lenders are the sovereign countries of europe and their politicians, they do not want to take that haircut. melissa: every time i have an economic debate with someone like all the time, they want to use greece as the example for their argument. have you noticed that? both sides say if we do what you want we'll turn into greece. if we cut spend drag mat i canly because of the fiscal cliff we're going to turn into greece. if we, keep spending or we raise taxes, if we don't pay our bills, what, how are we most like greecc? who is right in that argument? >> well, greece has currently a debt of about 190% of their gdp. melissa: woof. >> what they're trying to do, this is air aspiration to get it down to 120% the question they do that over 10 years or eight years or 12 years. there has been

the imf, for instance, say it is just a hair cut. they're suggesting that a european lenders will just renounce all some of the debt payments and that european leaders are saying we cannot burden the taxpayer is any further. they're saying it's time to get created so we're probably looking at a mix of solutions, some kind of a debt restructuring and possibly the ecb paying out some of the interest. it's true that european finance ministers will have to get creative because we're not even sure how much money we're talking about. it could be an additional 33 billion euro until 2016. >> thank you very much. >> 9% of germans hold a radical right-wing political views. these are among the disturbing findings of a new study published by a left-lane and german think tank. clogs enough of it tendencies have risen dramatically in eastern germany over the past few years and the increase has been particularly strong among young people. >> racist attitudes are often the starting point for dissenting and more far right politics. the foundation rep

officials from the imf are in brussels again today. should have just moved in. they'll try to hammer a deal to reducing the greek deficit and releasing the next tranche of aid. french minister says they're close to deal amid suggestions in the german press that politicians are considering a debt forgiveness program. you heard that right. debt forgiveness that good see athens's debt cut by 2015. at the same time, also telling the finance ministers to put a viable flame work on a banking union. he says ministers must meet a december deadline in order to pl placate fragile financial markets. still to come, swiss re says its hurricane sandy related claims will hit almost $1 billion. more details when we come back. can i help you? i heard you guys can ship ground for less than the ups store. that's right. i've learned the only way to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office. >>> your headlines today, euro group minist

the imf would not just like to put the debt horizon out further to 22 unless something else gives. lagarde made it quite clear that she thinks public sector involvement is now essential and should not be postponed any further. and that maybe we should get a lowering of the interest rates. lower of the interest rate i think is something the euro group could well live with. but the ecb has at least indicated some members of the governing council that might be it should be talked about and that would be a big chunk if there could be any movement on there. so it sha make up an interesting discussion indeed. last time we asked him are you going to reach an agreement today on the 20th and he said yes, well. and we said are you confident. yes, because we must. there is a logic in there, but doesn't necessarily mean we get it. >> in the short term, extending interest rates seems alike lie route. longer term, suggests there has to be a forgiveness of debt. and i suppose what we're looking at, if you look at it from a political perspective, how you get to that position so that it's okay for

. >> eurozone finance ministers and the chief of the imf did not entirely cia wide. lagarde is opposed to the idea of giving athens two warriors together better control -- to get their debt under control. >> it would be optimistic to expect the next steps to be shrouded in college, but there's no doubt that greece has delivered. we still need to agree on some details, but i think there's a good chance we will reach agreement this evening. of course, it cannot be 100% sure. >> there were also disagreements among all the rows of finance ministers, especially about an extension to greece's budget targets. >> the plan and, as it now stands, includes a funding gap that needs to be plugged. as they did not need to plug the gap, we would not need to have the meeting. i hope we would have a proposal that suits ever won by the end of this evening. then we will presented to the national parliaments. >> the greek finance minister says he hopes to have a plan to present as early as wednesday but it will only be possible if the talks this evening or successful. "the church of eng

done all it can to comply with the demands of international creditors, and the eurozone countries and imf must keep their part of the bargain. with state bankruptcy looming, athens has issued treasury bills with shorter maturity as a way of raising cash quickly. the opposition in greece blame the prime minister but added that germany and in particular chancellor merkel were also at fault. >> mr. samaras has become an inseparable part of ms. merkel's election campaign. she cannot admit to the german people in the run-up to elections that she made a mistake, that she is responsible for the coming recession and that the greek debts must be cut. >> the german finance minister continues to reject that option. he says he was confident that an agreement would be reached when eurozone ministers meet next week. >> chancellor angela merkel said there was no easy solution to the problems in athens, but she said she was confident that eurozone finance ministers would release that next round of bailout money next week. >> the leader of the opposition, however, accused merkel of failing to reveal the t

because it's the ones that are hard on austerity in the north of europe who want the imf involved for the cloak of respectability, but they don't agree with any of the imf's policies. >> right. >> i don't know where that one's going. that's going to be interesting. meanwhile, italy is on track to meet its borrowing targets. the result will be released at around 11:10, 20 minutes from now. the treasury is auctioning up in bonds between 2015 and another 1.5 billion. you've got to remember, this time last year as mr. berlusconi was leaving office and mr. monti was arriving, we were wondering how they'd get through 2012. >>> a couple of earnings now to bring you this morning. prudential has just edged analysts' expectations with a 13% rise in new business profit to $1.7 billion pounds. strong growth in asia was behind the uplift. the ceo told cnbc prudential is facing increased competition as a result of its asian acquisitions strategy. >> we are big victims of our success. i think we've done a good job promoting asia and telling the asian stories. almost every company has a strategy to d

the finance ministers and the imf agreed to loan greece $57 billion. greece will also get billions in additional debt relief. this is the latest effort to help greece stabilize its ailing economy. however, austerity measures are also part of the bailout package. >>> more than 100,000 people packed cairo's tahrir square chanting against egypt's president who they say wants to become a dictator. [ chanting ] >> police are fighting back demonstrators with tear gas. so far at least one person is dead and almost 400 injured as a result of the violence. >>> forensic teams in the west bank city of ramallah have exhumed the body of yasser arafat. a big blue tarp surrounded his grave as workers drilled through layers of concrete to reach the tomb. a murder investigation began last summer after a swiss lab found high levels of a deadly radioactive substance on arafat's clothing. now investigators have taken samples from his remains to determine if he was in fact poisoned. >>> heavy rains are flooding the uk. take a look. people were forced from their homes as st

the second is the effort he has made to get the imf to commit four $0.8 billion in loans with billions from the european union and maybe some money from us, depending on congress, to follow. that is a boost to his economy. again, he has to show results on the ground. he has to do two different things. show his government is legitimate to. and he has to show he can build jobs and clean up the trash and produce safety and the streets. >> there has been some successes as well. thank you for coming in. now to the mystery in the west bank, the body of yasser arafat was exhumed a few hours ago so the scientists can find out if the leader was poisoned to death. the move follows a documentary which reported that traces of the radioactive elements polonium had been found on his clothing. eight years after his death, what could this investigation uncovered? we have this report. >> it looks down from billboards and posters. the man who dominance -- dominated politics for decades. revered by most and reviled by many israelis, yasir arafat died in 2004 after falling suddenly and violently ill. eigh

represent our country's interests, and it is far too passive with regards to the troika -- brussels, the imf, and the central bank. >> at the military base in lisbon, little remains of the once proud seafaring nation. a few frigates, a couple of submarines. the military has also been hit by the cuts. members are equipped with year that has long been outdated. these naval infantry are still carrying guns from the 1970's. professional soldiers have already taken a pay cut of up to 30%. an officer gets 500 euros a month less before tax. there have been few promotions. discontent among the ranks is growing. some of their leaders are putting a brave face on it. >> of course we have had cuts. but the naval infantry's task is to face difficult missions, so we will manage this situation as well. >> portugal's military has long been an important part of the country's history. on april 25, 1974, this song was played on the radio. it was the signal for the army to occupy lisbon, and the largely peaceful uprising marked the end of nearly 15 years of dictatorship. in all their joy, portuguese people pres

they want billions from the imf. >> well, that's the way you do it. is that the egyptians also have a stake in this not getting out of hand. israel doesn't want the relationship to break down totally. egypt doesn't want to forfeit its relationship with us, $4.8 billion sitting there in the imf, the $2 billion annually. >> the imf's not going to give them the money if they are seen as being sponsors of hamas, are they? >> that's why this is the balancing act. what we have to make clear to the egyptians is you're no longer simply a party. you're now the government. you're going to rein in people over whom you have some influence. >> is the president passing that message along to morsi and the egyptians? >> i would hope so. the age of unconditional american relationships with a lot of these regimes is over. remember a few months ago during the campaign, the president was asked in the telemundo interview, he was asked, do you consider egypt an ally or adversary and he basically said neither? what we've done, whether it's pakistan, egypt, conditional relat

they are frying their budgets on this, and the imf has actually asked egypt to control this. and if you take a look into the history of subsidies of egypt, whenever the imf has asked them to take subsidies off, there have been problems; '77, '87, you name it. there is a chance for the united states to possibly advise on targeted subsidies for energy, but then again when we think about it, are we really good at that ourself? not really. if these subsidies are taken off in an awkward fashion or too quickly, there will be trouble in the streets. much like the subsidies on bread or anything else. it's a pocketbook issue. the revolutions were, in many ways, pocketbook issues. unemployment, shortages of bread -- remember the bread riots just before this whole thing started? and what was the problem? unemployment and a dreadful economic situation for most of the youth. even though many people may say that the macroeconomies of some of these countries are doing well, they do not point to the life of the youth. it's the microeconomics of desperation. walk around shubra and cairo or th

there is a lot at stake for morsi and his muslim brotherhood as well, there's billions of dollars in imf funds, most important to the u.s. is continued stability in egypt, that peace treaty some three decades old between israel and egypt, absolutely vital for u.s. and western interests. kate? >> mike viqueira at the white house tonight, thank you. >>> another hot spot the white house is keeping an eye on, the situation in israel and gaza, where a three-day-old cease-fire is still holding tonight. amid the rubble, there are signs life is starting to get back to normal, though there are also lingering worries about how long it will last. we get our report tonight from nbc's aymin moyheldin in gaza. >> reporter: for the first time since gaza took over the strip six years ago, israel's navy eased the blockade that prohibited boats from fishing beyond three miles from shore. now they can go twice as far says gaza's fishermen syndicate. and near the border with israel today, farmers were allowed access to land that for years had been off limits. another sign that life was slowly returning to n

he said greece did what it had to do and "our partners in the imf have a duty to do what they have taken on." he said the stability of the entire eurozone depends on the outcome of the next meeting. greece is becoming frustrated over the delay in the bailout decision. greek lawmakers approved extra austerity measures worth over 13 billion euros earlier this month. >>> let's take a check on the markets. the yen is being sold against both the d euro on speculation that japan's central bank may take additional monetary easing measures. the dollar/yen is currently 82.51-54. the euro/yen is 106.07-12. analysts say that the yen's fall is also driven by concerns over japan's reduced exports. trade balance in october marked the largest deficit on record for that month. >>> now let's take a look at how stocks are performing. tokyo share prices are recovering this thursday morning to the 9,300 level for the first time since early may. the key nikkei index at 9318. that's a gain of over 1% so far in the day. analysts say that market players are buying export-related shares as the yen weakens. inves

the former imf chief reaches a deal with the hotel maid who had accused him of rape in a new york hotel room. >>> and stormy surf. they are hanging ten and loving the pineapple express in southern california. but further north, the snow is now being measured in feet. >>> and good morning, everybody. i'm rob nelson. >> and i'm sunny hostin, in for paula faris. we begin with mystery winners of the biggest powerball payday ever. this morning, we still don't know for sure who will split the $587 million jackpot. >> it's not us, though. but it already looks like we have gotten a glimpse of one of the two winners, just as he learned the good news himself. abc's tahman bradley joins us from washington with the latest. certainly, this picture tells the story. good morning, tahman. >> reporter: oh, this is remarkable stuff, rob and sunny. now, the lottery officials are tight-lipped. but speculation is growing. a missouri man has come forward. and you're about to see video of another guy at the moment he realizes he's rich. could this man be america's newest multimillionaire? to be clear, the nam

>> our leverage obviously is not only the substantial aid we provide plus debt forgiveness plus an imf deal but also the world of public opinion is also against this kind of move by mr. morsi. >> both morsi and his opponents are saying that his move is terror. >> we will not leave until morsi and his regime leave. >> a meeting announced for monday between president morsi and the supreme judiciary council could signal the first hint of compromise but for now neither side is backing down. in cairo, steve harrigan. >>> there's a report that long range iranian rockets are on the way to gaza. according to the sunday times, an israeli spy satellite spotted rockets and weapons being loaded. the time sides an unnamed israeli source who claims rockets which were used to hit telaviv in the latest con -- conflict. iran supplies rockets to hamas between a tunnel between egypt. >>> people are lined up in rows after a fire in a garment plant. the factory made garments for wal-mart and other western outlets. since 2006, at least 600 workers have died in factory fires in bangladesh. >>> catalonians ar

they have agreed on these measures with the imf and the ecb and the eu.t they needed 31 billion euros that they need to avoid to default. the default could happen as early as 16th november when they have to repay 4 billion to their creditors. so there is very little time left, if the votes fail, to, with a new solution. we have seen this many times. —— to come up with a new solution. right now it seems there is very little time left, so it is very high risk, but the only strategy he has to get the vote through parliament. ryanair has rya nair has reported ryanair has reported a 10% rise in profits tax increases in passenger numbers and fares. net profit until the end of september was £477 million combined with record half— year growth and traffic numbers of 7% to create what ryanair has called a robust result. as or austerity measures take their toll across europe, it seems the region's biggest budget airlines is immune to the downturn. it seems that the chief executive, michael o'leary is even more bullish about his airline's prospects —— prospects. look

and of course there's the important role of the imf and whether the imf is itself willing to give way. but ultimately we do have a hard deadline. greece is going to run out of cash very soon if it doesn't get the additional financing. and therefore that is really concentrating minds. so on balance, it looks like there will be some kind of agreement at the euro group next week in which case that could be a boost on confidence and of course we have to when we think about next monday think about what the news might be out of caledonia. >> let's eye brokebring in silv brussels. i don't know whether you've heard the details and what you must have seen. they're talking this source about a greek did you tell buy back completed by the year end. 9 billion profit, 8 billion in interest rate cuts, might extend maturities, as well. >> this was always the mix that was on on the table in terms of the numbers. w50e67 heard various numbers floating around. was always a mix of lower interest rates, debt buy back program, redistribution of 9 billion in terms of profits was actually an option. it's an o

just like greece and the imf. they're supposed to get, i'm sorry the european union.pposed to be getting this money but they don't do what is required in order to get it done. what does that tell you? >> well all i can say this is total dysfunction on the part of the city council. they refuse to work with their mayor. they refuse to work with the governor. the mayor tried to call them in. they said sorry, we're on holiday. so as the city is in peril they're on a holiday? this is time for them to come to the table. and so what i've suggested, if they don't go to the table we need to look at all the options. could one option be dissolving the city of detroit? that is possible. melissa: what does that mean for a practical point of view? what would it really mean to dissolve the city? would the mayor be out of a job? would you take over their finances? would the name detroit go away, what would happen? >> if you dissolve the city of detroit it would be part of the wayne county the sheriff would take over police services and county would take over services just like they w

>> the imf money has been agreed upon i think for some $4.5 billion and u.s.ce is under congressional authority. a lot of that goes to the military. i think the military has had a long relationship with the united states and it will be interesting to see what they feel about these changes, as well. >> the military and ministry of interior is the only thing that morsi hasn't taken over yet. thank you very much for being here. >> heather: coming up teachers groups say bobby jindal's plans to use tax dollars to send kids to private schools is unconstitutional. legal battle over school vouchers in louisiana is just ahead. stay with us. gives you 1% cash back on all purchases, plus a 50% annual bonus. and everyone...but her likes 50% more cash. but i'm upping my game. do you want a candy cane? yes! do you want the puppy? yes! do you want a tricycle? yes! do you want 50 percent more cash? no! ♪ festive. [ male announcer ] the capital one cash rewards card gives you 1% cash back on every purchase plus a 50% annual bonus on the cash you earn. it's the card for people

this is welcome, but it would have been preferable if these adjustments had occurred before the eu imf programs had to be put in place in some of these countries. the gains in cost competitiveness responded only to adjustments in relative wages. productivity matters. in low productivity sectors, labor shedding as increased aggregate productive, particularly ireland and spain. we expect the progress in structure reforms especially those that improve the function of the labor markets and product markets will add lower unemployment and facility new employment opportunities. the reform momentum has been 34r5 particularly pronounced in some countries which many cases coincide with those countries that face the largest adjustment needs. despite the adjustment in relative unit labor cost, the overall price adjustment, however, has been much less pronounced. and there is clear evidence that increasing profits contributed to a large extent to upward pressures on prices in some countries. it is of paramount importance to address the lack of competition in a number of areas with strong vested int

>> monday we will see the euro central bank and the imf will hold hands together and say we will extend another two years, that will be it. also, spain sitting in the background, they are not doing anything. are they waiting for their fiscal cliff? one of the places we're looking at, japan. there is an election coming up in the middle of december. what we are seeing is the japanese yen devaluing. one of the things we need for their economy is exports. they have been horrible. look at electronics companies right now, they are really struggling. we're looking at the fiscal cliff, the dollar holding into an 80, 81 range, and it will probably stay there until we start getting closer to the christmas holidays and when it comes to crunch time for the fiscal cliff, let's see how this shakes out. cheryl: i still can't believe the euro is as strong as it has against the dollar considering everything that is going on over there. while our economy seems to be strengthening, how do you explain that? >> there is a flight to safety. people leave europe is going to be able to pull this out. there is a