mr. draghi: the discussions had fruitful.positive and very friendly. returned.re what he said exactly but you can check, saying he did not mean what he said or he did not say what he meant. , andy, he returned on this in view of my previous words, -- insecurityme among people who have concerns that there would be no negative interest rates for a long time. for the bewilderment we have seen in many a letter -- election results. which is what you were saying before in your previous question. so that is the suggestion. whatght of -- in light of i said about us having a mandate, and being bound by the law, is a very silly welcome -- it is certainly welcome. i'm responding also to remarks made by other public figures. our policies are the same. by and large in country has its own specificity. second, would a non-italian president run different policies? the answer i would give is yes, of course, but that would not be enough. if my predecessor gave an interview where he said, i would have done the same things that what isd, he confirmed of the council in its entirety,

mr. draghi says this criticism makes matters worse. michael: as a matter fact, mr. also acknowledge that the low interest rates is difficult for insurance companies and so on. pension funds, they are really suffering. didhe end of the day, it not really boost the economy in those countries in the southern hemisphere. the problem is in those countries. they did not do enough reforms. what i would expect them to do is to push them for more reforms. low interestney, rates is obviously not helping too much. so, i'm expecting the ecb to press the southern hemisphere countries in order to do the necessary forms because reforms at the end of the day will lead to a better economy. i'm afraid it is not at the moment and therefore, we need to do something immediately, pressure from draghi would be great. francine: i'm sure that president draghi would love a lot more reform in the southern hemisphere. he has said it many times. but governments that need to do their bit. he does not really have a choice but to do more q.e. or be sure he does not miss the boat of t he boj does s

mr. draghi and the rest of the german political economic systems. what does germany want out of mr. hard money. germany is dragged into the idea of negative rates and the idea of exceptional accommodation, and let's be fair, if the german housing market is one of the big beneficiaries of quantitative easing, then that's booming. the bigger dynamic in germany pleas betterthe coming from the imf and christine lagarde, please ease fiscal policy in germany. tom: how does that play out? i saw no cultural suggestion that germany would do what madame lagarde requests. >> exactly that, although certainly not without some quid pro quo. the imf meeting last me could be summed up as the world has borrowed too much, has too much debt, could those who have room please borrow. an odd message, but one which is sent toward germany and falling on deaf ears. francine: will he have a crisis this year? can central banks combated if we do? >> i don't think>> we will have a crisis. look, i have been amazed by the ability of central banks to come back with more and more. it feels as if they are running ou

mr. draghi has said that there is a floor, and subsequently cut rates again.apan is clearly in the early stages. the dmb is saying unlimited -- and recent moves would suggest further action. it isn't over yet. francine: thank you so much. stephen major, hsbc. he stays with us. we talk treasuries, next. also, what does the rest of 2016 hold for fixed income investors? we will get more of that analysis. i'm sure there is correlation. ♪ francine: welcome back. this is "the pulse." let's get more with our guest, stephen major. great to have you. you had some great calls on treasuries that were quite market moving. onyou have a new -- is that easing from janet yellen? >> yeah. if you had to pick one single factor that has driven the bond market this year, it was the fed's capitulation. that explains why it is the consensus going down in a steady fashion -- francine: to what? to the market pressure or something brewing in china? >> that is the bigger question. capitulation to more dovish forces. you can start with china as being a trigger -- people are focused on g-

mr. draghi indicating the need to remain low or lower.lso said they did not discuss any additional measures. he says policies have been working and defended negative rates, saying there has been no sign that it is hurting earnings. he also weighed in on the issue of brexit. we do expect the continuation of market volatility, certainly until the referendum. i don't want to speculate about the outcome of the referendum, probably even after the referendum. is it enough to endanger the economic recovery in the euro area? the assessment of our staff is that the risk of this happening is limited. that could come in the form of tighter monetary conditions. ift to add, he said that conditions don't tighten enough to alter their outlook, then the ecb is ready to act with all the tools and instruments it has. rishaad: thanks, david. on our website, the first flight for japan's stealth jet. have a look at it. bloomberg.com/asia. china hasd out what to do to get asia included on a local benchmark and how that will affect local investors. that is comi

mr. draghi has the --. >> how confident are you that we are seeing progress in the negotiations over greecehe group we're going to talk about the progress made in athens and the talks to prepare the review of the first program. very good progress in athens. and in in my view we are close to an agreement. this agreement is possible. we need for that to have a credible package of reforms which are economically adapted, which are financially sustainable and which are socially fair. i'm confident that with an effort an agreement is in reach and we need to have that and we want to have that as far as possible. of course the targets that have been fixed for the prime minister through 2018 inside the mou must be met. but the figures given yesterday for 2015 go in the right direction. so i'm entering this meeting with will and with the idea that an agreement which is absolutely necessary fast is on view at site. how should we feel about the debt relief aspect of the negotiation. this appears to be a key sticking point for the imf to be part of this new package of measures. how have you narrowed the

mr. draghi acknowledged that today. >> some central bankers this week saying that we have reached the limits of the effectiveness of central bank monetary policy. do you concur, or is there more to be done, and can more be effective? >> i certainly concur that the marginal efficacy of each additional dose of monetary easing is declining. i would disagree, i think, on that we have reached the end. in the press conference, mario draghi brushed off those questions about purchasing equity or helicopter money. what he did indicate was that they are willing to purchase more assets and keep on doing that, and that is where i think if more stimulus is needed, that is for it will come from. >> tech stocks take a tumble. microsoft and alphabet deep in the red in the premarket, missing earnings forecasts. look at the tech earnings we have had so far. it is a story across the board about valuations and investors getting a little too excited last year about the prospect of some of these companies. >> you can make that argument from one hand. i think it is probably too early to tell. my firm studies price

mr. draghi has said time and time again. he said they'll do whatever it takes on monetary policy. but we need fiscal reform, structural reform as well. who are the culprits? who isn't pulling their weight on structural and economic reforms in europe? >> well, the division of labor is quite clear. monetary policy can provide some short-term bridge towards the future, enabling fiscal policymakers and policymakers for the member states to conduct structural reforms. opening up product markets, bringing their labor markets in order, trying to get away from the dual labor market situation you have in some countries, looking at employment protection, et cetera. so it's a fiscal policymaker. it's the governments that should be in charge of the structural reforms, not the ecb. >> in terms of the german economy, when i look at a country as successful as getting unemployment down as germany, then i see the ifo talking about consumer sentiment driving strength, does the ecb at the moment have the wrong set of economic policies for the german economy rather than the broader european economy?

mr. draghi should be focused on pushing governments to do?we can see that in the united states, we have ben bernanke, janet yellen issuing strong warnings about falling off the fiscal cliff, because two persons understood that if people are not borrowing money for balance sheets reasons, then the government has to keep the economy going, and that is why the u.s. is doing better than the rest . in the case of japan, you have the fiscal stimulus, and you might have to strengthen that in the short run because private sector is still not borrowing money 25 years after reversing the level. we need to work on the trauma issues. when people go through this long period of paying down debt, they don't want to borrow money at all. americans who lived the great depression never borrow money until they die. europe isopean case, far behind everyone else in that the government is prohibited from borrowing because of the anyty, which doesn't make accommodation for this type of recession. manus: richard, thank you very much for joining us. i hope you get a l

mr. draghi acknowledged that today. >> i think it is very easy to say if they were hiking rates and not doingomy would be in a worse situation. while we look at the results in the real economy and the inflation rate, he doesn't look like much. but i think without that monetary policy, the situation in the eurozone would be a lot worse than it is right now. >> important for them to have comfortably low but not too low levels london -- levels of inflation. they are trying to revive bank lending. reforms, structural they are trying to concentrate on getting organic domestic growth going. thoughts there on the ecb and what we heard from mario draghi yesterday. the dutch finance minister is making some comments this morning about monetary policy or trying hard not to talk about monetary policy is more accurate. at draghi has to do his work in independence, in relation to the conversation that have been going on. germans finance minister wolfgang schaeuble critical of mario draghi recently, though he did say they were friends after that, perhaps what some would call a bit of a fallout. don't expect

mr. draghi faces april 21. >> that's a tough one.hink we really understand what's going on the productivity. i just read those 700 pages of bob gorman which says that there is no -- i find it to be overly pessimistic. it's the end of mankind invention, so i don't buy that. withpect it has to do measuring because the economy is moving more toward services now and we don't really know how to measure. tomfrancine: do we know what is going on behind yen moves? i have a chart -- until yesterday, yen was going ever higher, despite all we had from boj and governor kuroda. are you worried that again we are piling into -- is a haven? is it because there is a lack of structural reforms? >> i don't know what's going on, and when i talked to policymakers over the last couple weeks, it's the one thing they talked most about -- what is happening to the end. a community of a dozen of my types from around the world just a week ago, and we were guessing where it goes. it was 50-50 up or down. we have no clue. i'm in the camp who think that over time

mr. draghi and the germans, where is that as we go into the press conference? ul: as you are aware, the finance minister will function nobler -- finance minister wolfgang schaeuble are called mario draghi's rent. maybe that will go as we have stimulus into the summer. this is partly political. the government has elections next year. when populist parties are on the rise. it infringes on central bank independence. draghi may feel that he has the push back. the bundesbank is on his side on that matter. francine: thank you. stay with bloomberg for our coverage of the ecb news conference. will bring you the right decisions at 7:45 a.m. in new york, 12:45 in london. we will bring you mario draghi's news conference starting at 8:30 a.m. in new york, one: 30 in london. is the glass half full? ♪ ♪ francine: welcome back. i am francine lacqua in london. tom keene is in new york. let's get to the bloomberg business flash. volkswagen will pay $2 million to settle claims over rigged emissions test. the u.s.0,000 cars in would be covered. it is unclear how much individual ca

mr. mario draghi has been doing. he is intellectually a genius but maybe too smart for his own good.urozone divides a scheme that cut the funding cost of corporations in half with the negative lending rate. he has to put it into a rigid intellectual framework to pass scrutiny. in the eurozone, the euro did there was because focus on the currency but in japan, this is providing liquidity to the market or the hope of it. this is the first action that will actually help the banks to lend. it's in the context of many speculators trying to push up a yen and they are running for the hills. we don't know anything yet but these are rumors. it's a hope for the bank of japan that they can influence the yen. scarlet: it would be an experiment europe as japan. what would work in europe work in japan? >> it doesn't work either place. it just the markets are happy about it. in the euro zone you need help the banks. it's good to shift away from weakening the euro which helps german exports but you need structural reform and the same thing in japan, deep structural reform and that does not happen by

draghi. >> yeah. it's really changed the nature and expectation of this meeting, nancy. because the comments from mr. schae scha schaeuble will now overshadow the meeting. obviously now i think mario draghi will have to address the criticism from politicians who are increasingly concerned that the negative deposit rates are hurting german savers. and german savers have lost as much as 125 billion euros of interest income on their savings and others are starting to get concerned about what the impact will be on pension savings around the euro zone. i know the dutch have concern about that. it will be an interesting meeting. i don't think we're expecting any significant news on policy but draghi will clearly have to field questions as to how he see it is comments from the germans damaging the independence and the independent legitimacy of the ecb at this point nancy. >> and you have to wonder whether or not president draghi will simply point the finger back to the policy makers. it is not just up to us. the government has do more but now the government themselves saying we don't want to do any further

mr. garcia pascual: so, look -- they just announced a really broad, large package. so, i think the issue and the challenge tomorrow for president draghis to keep the audience toaged, in a way, to be able continue to transmit a very accommodative economic policy. in terms of inflation and inflation expectations --he cannot say a lot of big news, right? inflation expectations continue to be at almost historical loans. it does not seem that expectations have reacted, at least not yet, to the package. the reaction -- if the occasion is for drug it to engage the market and convince them that monetary policy that stands and not reflect anything new or new news tomorrow. betty: thank you. barclaysarcia pascual, chief economist for your. ahead of the ecb meeting, former eu governors showing skepticism over the impact of monetary policy. we will hear from mervyn king. that is next. ♪ mark: you are watching bloomberg markets. i am mark barton in london. betty: and i am betty liu here in new york what a beautiful manhattan skyline there. one weather. spring is finally coming back. mark? the central banking world continues to face increased quest

mario draghi insists negative rates are working as bank of japan officials are set to eye sub zero rates. alphabet mrsmisses estimates. president obama urges britain to stay in the e.u. .", welcome to "the pulse i'm francine lacqua.

mr. abe and he may do something more desperate. >> and europe equally as well, no? >> yes, absolutely. draghiomorrow making a presentation. we'll be interestied to see wha he says in that manner. it's about the whole health in europe. >> it's about four weeks. art, thank you. >> my pleasure. >> enjoy the rest of the season. >> art cashin, cnbc. >>> when we come back, opening up the team global arena in the multi-million-dollar development on the veglas vegas strip. hee going to join us on "squawk alley" in just a few moments. to spot trends and predict demand. sounds like you spend a lot of time online? i constantly absorb online content to follow shifts in pop culture. so... you're learning to think like a teenager? yes. how am i doing? well... uh... >>> can could higher taxes on soda actually help the stocks? one man has a perspective. you can get that on tradi tradingnation dayto tradingnation.cnbc.com. [vet] two yearly physicals down. martha and mildred are good to go. here's your invoice, ladies. a few stops later, and it looks like big ollie is on the mend. it might not seem that glamor

aggressive short on this contract because probably draghi, i think the quiver is probably not going to fire any new arrows. tyler, back to you. >> mr, thanks very much. back to melissa lee at the emerge america's conference down in miami beach. melissa. >> well, tyler, look who is joining me here on set, armado christian perez, aka pitbull, mr. world wide, mr. 305. >> a lot of names. >> good to see you again. >> thanks for having me. really appreciate it. thank you for, like i said, the support here. it's just amazing to see the growth down here. >> most people don't think of you. they think of your music first and foremost but you're also a business person. you're a supporter of entrepreneurs. >> correct. >> why are you here at emerge? >> i'm here at emerge because i have a lot -- i can relate with entrepreneurs, businessmen especially being in the music business because every time we come up with a new idea or record people are constantly telling us how it's not going to work, it's noted a goosed a before and to have a state of mind of an entrepreneur is always believe in yourself and have great partners and always find ways to p