of justice mr vague of european court of justice said you detain 2 families seeking asylum in border transit zone for more than a year giving them the opportunity to have their detention reviewed by a court and with no opportunity to lawfully leave that zone of their free will in any direction how does illegal detention fit in with your much trumpeted views about protecting europe's christian heritage what's christian about that sort of behavior. let me be very quick they are not deterred not detained they can leave that transit zone whenever they want toward serbia from where they came from these families i think christian responsibility means that you help people where they are you take have where help is needed instead of bringing the problem into the european union that is unable to deal with hundreds of thousands or millions of migrants coming into this continent that's not the way forward the past 5 years have shown very clearly that's that's an interesting excuse that's an interesting excuse me state of a given amount which you which all bible teaching which bible teach

legal debate and it's a debate about european law and asylum or you mentioned this verdict of the european courtof justice i mention other one just a few months ago that of the european core court of human rights this in strasbourg unwilling to the council of europe they all saw looked at a very similar case about the transit zone and how migrants or asylum seekers are treated by hungry and they found that the transit zone in hungary at the border of hungary was not detention at all since it was open towards serbia in that particular case and not not closed without trial in europe you say that but the european court of justice mr vague of the european court of justice said you detain 2 families seeking asylum in a border transit zone for more than a year giving them the opportunity to have their detention reviewed by a court and with no opportunity to lawfully leave that zone of their free will in any direction how does illegal detention fit in with your much trumpeted views about protecting europe's christian heritage what's christian about that sort of behavior. let me be very quick they are n

as ever though the european court of justice is the guardian of the european treaties in our view the constitutional court has not questioned that it has merely called for a careful balance and justification of the policy. but the european central bank said it does not follow the rulings of national courts and commission president on the line is considering legal action against germany opposition politicians in berlin sense this battle could last for some time quotes because the in the short term we do not expect any fallout from the court's decision but in the medium to long term we face long postponed questions about the future architecture of economic and monetary union the open question is will we have more joint liability or will be strengthen the principle of fiscal responsibility in the e.u. . does this for i am and sadly this is above all a political failure the european central bank's hands are tied by politicians it's not allowed to bankroll or financially support the member states but on the other hand there's no common financial policy this conflict will require a politica

the european institution, and first and foremost the european commission, defense with the european courtice and the european order -- otherwise, hungary,ee people in in poland, exploiting this space in order to call into question our rule of law and are fundamental rights. francine: should the bundesbank take the lead in defusing the case and the crisis? sven: i think the bundesbank and has a cooperative safekeeping solution. if politicians make size proposals, this will be stupid because it will be seen as an infringement of their independence. therefore, i will not enter into making precise proposals, but i can only say as a politician, it is needed that we settle the legal conflict when it comes to the european rule of law inside of the european -- and between the european institutions as member states. so that the euro system can continue what it needs to do to keep the euro stable in crisis. francine: what are the options of urszula vendor line right now -- of ursula von der leyen right now? sven: for my letter, i received a -- the case is clear. it will be very fast, declaring purc

terms of today's decision, one thing to bear in mind the german court is facing the fact that european court of justice has already given the opinion on this matter. they have ruled in favor of the ecb. if the german court were to rule against it, it would mark an unprecedented clash between german and eu law andres a key hurdle that the german court is facing today the fact that the ecg has already given its opinion. >> you can see on the screen there, let me voice this, germany's courtrooms partially against the ecb bond purchases if you look at the key measure of how the market is reacting to this, that is the btp bund spread, initially, we saw a little tightening on that spread we are seeing some headline selling on the 10-year btp that should widen to a degree, the spread between what is perceived as the solid sovereign of germany and the slightly riskier 10-year italian btp. >> if you are still with us, let me bring you back into this conversation you are taking this realtime as we are we are getting some movement in the sovereign bund spread. your comment welcome what do you think of

we heard a ruling a week ago by the european constitutional court questioning the judgement of the europeand buying scheme of the ecb, so this is quite technical, but the long and short of this as we have a national constitution report questioning the authority of the european court of justice. questioning the authority of the european court ofjustice. and in the european union, the rulings of the european union, the rulings of the european union, the rulings of the european court ofjustice, they have to be implemented by the member states, the buck stops with that court. the national courts have no say. so the ruling of the german constitutional court can set a really dangerous precedent in european practice. it can lead to, for instance, countries like hungary, which is already in a state of emergency and practically a non—democracy in europe, or poland, or even the countries of greece, the government of greece, italy, portugal, questioning rulings of the ecb on the grounds that they violated the remit of the european institutions. the ecb being the european central bag? yes, the european

it did so and compared to the ecb and european court of justice and the court was ultrawired in the end, it will have the effect that the bundesbank will have to check their asset involvement on the new check whether it feels bound or not bound, it is not so much relative to how the test will be conducted over the next three months the constitutional court said the german government must monitor more closely whether an ecb is still acting within its mandate or outside buyers. this is something we have to insure institutionalize. >> at what point, do you see the mandate being control. what institution should have the say over that? >> caller: this is a tricky matter of course, to say quite bluntly or directly, no one, neither the constitutional court or someone in parliament thinks the decisions on interest rates or other ordinary policy decisions should be monitored or directed or commented by someone in the parliament. this is not the content of the ruling and not the intention of the german policymakers. we are discussing a more difficult aspect when it comes to a conventional monetar

of the european court of justice on the bond buying scheme of the ecb. tional court questioning the authority of the european court of justice. in european union, the ruling of the european court of justice, they have to be implemented by the member states, the buck stops with that court. the national court has no say. the ruling of the german constitutional court can set a really dangerous precedent in the european practice. it can lead to countries like hungary, which is already in a state of emergency, and partly in our democracy in europe, or poland or even the countries of greece, the government of greece, italy and portugal, questioning rulings of the ecb on the grounds that they violate the remix of the european institution —— remit. ecb being the european central bank. if you start to have many member states questioning the legitimacy of this, thatis questioning the legitimacy of this, that is the beginning of the end. the only other point you have made about the lack of solidarity between the north and south, the divisions between the alleged sen

an example of the european court of justice is the guardian of the european treaties in our view the constitutional court has not questioned that it is merely called for a careful balance and justification of the policy. but the european central bank said it does not follow the rulings of national courts and commission president on the line is considering legal action against germany opposition politicians in berlin since this battle could last for some time. because in the short term we do not expect any fallout from the court's decision but in the medium to long term we face long postponed questions about the future architecture of economic and monetary union the open question is will we have more joint liability or will be strengthen the principle of fiscal responsibility in the e.u. . and sadly this is above all a political failure the european central banks hands are tied by politicians it's not allowed to bankroll of financially support the member states but on the other hand there's no common financial policy this conflict will require a political solution. it's not helpful tha

the european commission president threatens to sue after the german constitutional court challenges theuthority of its eu counterparts. this is bloomberg. open this is "the european just about 35 minutes away from the equity cash trade across europe. ftse futures gaining 0.75%. the european commission has threatened to sue germany twice in one weekend for not abiding by you -- eu law. it follows the landmark ruling by the country's constitutional court challenging the ecb's monetary authority. commission president ursula von der leyen said the final word on eu law is always spoken in luxembourg, referring to the european court of justice there. nowhere else. the european commission is tasked with the functioning of the euro system and the union's legal system. we are analyzing the ruling in detail and we believe that the next steps which may include the option of infringement proceedings. joining us now is bloomberg's legal affairs correspondent in berlin. there is a lot to sort out because it is the european commission talking about the german constitutional court stepping on the toes

european commission hits back. challenges to constitutional court. is is bloomberg. ♪ manus: daybreak: europe come on in manus cranny from dubai. the european commission has threatened to sue germany twice in one weekend. abiding eu law following a ruling by the constitutional court challenging the ecb's monetary authority. the commission president ursula von der leyen said this. the final word of the eu law is always spoken in luxembourg. nowhere else. -- european mission commission's task is to safeguard a proper functioning of the year of the euro system and unions legal system. we will look into the possibilities of next steps which may include the option of infringement proceedings. 's from newtone investment management and is still with us. eu to germany, germany to the south of europe, but i emphasize south of europe. breakup risk is on the table. how do you play that? is it real, or is it media hype? catherine: i don't think it is -- it is certainly not out of the question we could see a breakup of the eurozone. done iss outbreak has it has le

coming back to covert and the european economy is in its knees the eurozone is facing a major problem with a ruling by the german constitutional court that the e.c.g. and the e.c.b. european central bank have acted illegally by going over the top on quantitative easing the major constitutional issue inside the e.u. there's a potential collapse of italy the dropping of the euro zone the failure so far to reach agreement on a package for the poorer countries within the e.u. and terms of helping them through the coronavirus of coronavirus crisis so there's a whole lot and the internal plate of the e.u. and similar the joints and government is facing economic catastrophe if it doesn't take a substantial measures to rescue the u.k. economy from the results of covert so is the interests of both sides in my view to reach an agreement and that will have to be a compromise in the number of areas but i believe a good event can and should be reached meal member of the scottish parliament thank you for joining us from alex aman show pleasure. if there had been no what old time demick then good it would still have been dominating the headlines i

peter: i am not worried because i look at the european court of justice.nk it will influence ecb policy which will look at the european court of justice, which has so far very much said policy has been in line with the treaty. i am not so much worried, but you can put noise and the markets and raise questions about if the opinion would be would be thee, how bundesbank in the purchase program evolve? but i don't expect this. tom: how japan is europe right now? there is 60,000 foot elevated talk about europe or america becoming like japan, but with a glide path and the relative glide path of disinflation identified, how close is europe to the habits and characteristics of economic japan? peter: to some extent, it is worse. i think before the covid shock, europe was a little bit in this issue about 1% growth and 1% inflation. point, but to some extent it is worse because there is a lot of rigidity in the union and that complicates the situation where you see japan as a harmonious society where you have much more internal fragmentations in europe. that complic

vice president says the central bank only answers to european courts and not governments as it resists the court's call to justify its bond purchase program. >>> significant loss of output has become inevitable. that's the message from the new boe governor as the bank forecasts a 14% drop this year sterling rises as it predicts a sharp recovery in 2021 >> caller: expect a recovery much more rapidly than the pullback in the current financial crisis >> as you can see, it is turning into a positive morning, the dax now charging higher. gains really broad based investors expect to return on the recovery weighing in on their expectations with a sharp drop in the output, inevitable at this stage they are expecting a rapid recovery looking through the dire earnings from a number of companies across a raft of sectors. looking ahead at the end of the year and out to 2021 that's the story for equities in europe wall street is looking at a bounce the dow looking at a triple digit rise s&p 500 and the nasdaq looking at gains looking at the nasdaq outperforming the dow and s&p. we are looking at th

and finally a low cost airline ryanair is set to submit a complaint to the european court of justice against the german government's rescue package for struggling competitor lufthansa ryanair c.e.o. michael o'leary says that. dictate to state aid whenever there is a crisis 1st reflex is to put its hands in the german government's pocket mr larry also said that the german government broke e.u. rules there as taking out a 600000000 pound loan from the u.k. . a government that argues this isn't reasonable compared to new phones as 9000000000 euro package. that's thanks for watching the more. willing to buy is a savior of the forest. he calls $210.00 acres of land in central gonna his own he's recall debating and conserving wood and teaching how to practice sustainable forestry it's all about training power and he's also on their doorsteps still going to have the babies come fall and come out for the. next. course to find decent accommodation. some of our food comes from flying from the bush. ranch up to 101st mummies. the last one of a shoot for the 100 years of. secure and affordable h

now we have germany and the constitutional court actually challenging the most effective pan-european institution in terms of its response to this crisis, which is the ecb. so i do think it is very unwelcome, but i also do think the ecb is not going to allow court member state or outside of the european court of justice to stop it from doing what it believes it needs to do in order to meet its mandate. i don't think this stops the ecb from taking more action, but it andrly is very unwelcome, it clearly undermines the notion of european solidarity, and it is in stark contrast with, when we look at the u.s., i think one reason why u.s. assets have outperformed during the course isthe rallies in april because the policy response from the fed and also from washington in terms of economic policy, at least, have been much more coherent, much more broad-based, and much more effective. vonnie: david, fascinating conversation. thank you for that. that is david riley of bluebay asset management. let's get a check on global markets. here's kailey leinz. kailey: it is a red day for equities acros

and finally a low cost airline ryanair is set to submit a complaint to the european court of justice against the german government's rescue package for struggling competitor. ryanair c.e.o. michael o'leary says that is dictated to state aid whenever there is a crisis 1st reflex is to put its hands in the german government's pocket mr larry also said that the german government broke you waltz right there has taken out a 600000000 pound loan from the u.k. government but argues this is reasonable compared to those 9000000000 euro package. thanks for watching your back with more. nearly 1000000 people killed in just 100 days. where one younger generation did not experience a 994 genocide but. it's consequence. to overcome the psychological trauma one step at a time the form. of the. jim reconciliation close up a little bit next on d w. for many they're considered and dead in washington's poor neighborhoods but the crimes shootings abyss is joe houston has almost behind him and today in his messages sports north murder. she is spreading how open ended it is infectious. clinton 3000. and 1

maybe it's too premature to call this closure they're also looking at a further decision from the european court of justice that's looking at a new word fear goals so this might not be over for them we could still see a new wave of lawsuits. the. move that has long legs that's for sure you know as always thank you. well the german government and lose tons of have reached a deal on a bail out according to the announcement from the economy ministry in return for buying 20 percent of the airline shares the government has imposed limits on managers' pay and specific financial targets shares in the airline shot up nearly 6 percent following the announcement but the deal has still yet to be approved by shareholders and the european commission. are listing a look now at some of the other stories that are making headlines around the world don the cummings a top adviser to british prime minister boards johnson has defended his decision to leave london during the coronavirus walked out he said that it was reasonable to travel to his parents' home in durham for childcare reasons while he and his wife had s

and finally a low cost airline ryanair is set to submit a complaint to the european court of justice against the german government's rescue package for struggling competitor. ryanair c.e.o. michael o'leary says that. state aid whenever there's a crisis 1st reflex is to put its hands in the german government's pocket mr larry also said the german government broke you waltz ryanair has taken out a 600000000 pound loan from the u.k. government but argues this is reasonable compared to those 9000000000 euro package. thanks for watching for more. weeks living be sure the well being of their progeny communicate with others of their. feet. and are neither human nor animal. trees. join scientists on an exciting expedition into the world. to go to. g.w. . to find decent accommodation. number about which comes from plants from enough. the ranch up to 101st miami. the last one of a show more than a 100 years ago. secure and affordable housing becoming a scarce commodity. made. in 16 on d. w. . in the eye of climate change. conference most of. what's in store. for the future in the. common for t

it's the self time ever a national constitutional court is saying that the european court of justice has actually made a mistake and that it might be a huge problem for the european legal system that's why we see such a forceful move also by the european commission putting a potential -- or saying that they could potentially sue germany and bring them actually in the same camp like poland and hungary. on suing national state, also france was already subject of such a proceeding in 2018. so, it is not super unusual but it might now at the time of this crisis, it might really set a precedence that other countries could also say, well, our national laws contradict european law and it is not that the european law is actually worth more than the national law. that is the problem. and what will happen next is crucial. the german government is currently analyzing the verdict. what could happen, according to lawyers i've been speaking to, is that the bundis bank comes up with a sort of report and that report then will also be approved by the governing council so everybody has saved their fac

bank head of fx strategy, i want to read the statement by the european court of justice. e court of justice alone has jurisdiction to rule that an act of any you institution is contrary to e.u. law. it goes on to say that like other authorities of the member states, national courts are required to ensure that e.u. law takes full effect. this is effectively the ecj telling the german constitutional court thanks for the opinion but it is not relevant. you still have to allow the ecb to do what it is going to do. is that right, john? john: yeah, it does appear that the european institutions, both the court of justice and the ecb are simple he going to throw their weight around, and more or less say we have established what the right thing to do here is, and whether it fits in the treaty. it is a question about the long fuse issue of the existential question, which i think will not go away until we have mutual debt. for now we can tap this down and maybe it will come up again. -- we can tap this down and maybe it will come up again. what ites not receive feels is a satisfactor

european trade commission. the ecb -- commissioner. the ecb has responded to a german courtzing its long-standing bond buying program by pledging it continue to do everything necessary to revive inflation. the bank's governing council took note of the judgment but pointedly remarked that the top european court has previously said that quantitative easing is legal. gregory perdon, co-cio of arbuthnot latham, is still with us. we talk about the ecb issue already. i want to get back to phil hogan and his push for, you know, a trade free world during this recovery. brexit aoing to make little bit easier for boris and the u.k.? is it going to be easier to get a strong, free-trade deal because of the coronavirus crisis? gregory: i mean, i think it's difficult to say right now in terms of the brexit situation. it has really taken the backstage, so to speak, as everyone has turned their attention to the health scare and quantitative easing and fiscal stimulus. so i would suspect that, you know, all hands on deck from the u.k. government, in terms of focusing on making sure that the

we will be talking about that as the, the european court and court in germany. i really fascinating spiders web that has been woven. here in the u.s. come of the s&p 500 up 1.5% at 2886. a risk on tone in the market as you hear about tariff exclusions extended for up to 12 months on some chinese goods. also oil rallying. it got up to $30 a barrel earlier. yesterday, we spoke with one of the texas railroad commissioners. wasaid that prorationing dead on arrival, but that permian producers could ration themselves. that is what we are seeing today. they have cut production today, and we are hearing that others will cut production in the next few months. we are also just getting a headline from that regulator meeting right now. texas oil regulator asks producers for ways to reduce flaring. as we all know, following the story, flaring was one of the ways that oil producers got rid of the excess oil coming out of the ground, but it was not going anywhere. of the regulators is asking producers for ways to reduce flaring. crude is now trading at $23.50 a barrel, and the

maybe it's too premature to call this closure they're also looking at a further decision from the european court of justice that's looking at a new word fear goals so this may not be over for them we could still see a new wave of lawsuits. the scandal that has long legs that's for sure gino as always thank you. here in europe countries are pushing ahead with plans to lift lock downs and reduce restrictions that were put in place more than 2 months ago when the coronavirus pandemic took hope but already there are consequences here in germany just 2 weeks after hells of worship were reopened a new coronavirus cluster has emerged health officials say 40 members of a baptist church near frankfurt have tested positive for the virus it's believed the virus was spread during a sunday service more than 100 confirmed cases have now been traced back to those church goers now the outbreak in that church is precisely what public health officials have warned us about even as people are urged to maintain social distancing the risks of new infections will rise as we have temped a return to normality and yet st

or 5 years ago there is pushing it is deregulating the european court of justice said it's a g.m. they're trying to have it declared and not g.m. or all the instability of this gene try. the negative is coming out gene tries to push species to extinction can you imagine the mines the miners that would imagine it has the power to engineer extinction i wish extinction rebellion what drives up against this deliberate extinction difficult arguments difficult to have a demonstration on at the moment but there is no direct evidence at the moment that the creation of monocultures by capitalism by greed directly created coronavirus surely we need that proof before big agriculture big mining big pharma have to pay for what in effect is deforestation and so on for creating coronavirus when we do know that the bias comes from a back that much we know i also have newspaper reports from india of all of the defense research years of china and the u.s.c. jointly came and pirated really that's in viruses from india in the not. so we do know there was a deliberate collection of these there are d.n

constitutional court ruling today, but the fact that the german constitutional court is at odds with the european courtjustice over the previous program, the app, means you could see a court challenge in the future. i don't think it will constrain with the ecb is going to do over the next several months. therefore, i don't think it is a reason to be expecting wider spreads or a much weaker euro or lower european equities, but it monitor if risk to challenges are leveled against the program and the ecj rules against that, then obviously that is a major issue how european sovereigns are going to be funded. they will take a long time. it is not an issue for right now. the biggestat is issue facing europe right now? do you worry about all the debt accumulated by certain countries? will they need a bailout or is it too soon to worry about that? john: i think there is a very near-term issue around to what extent lockdowns cause a big bounce in growth or a small bounce in growth, but that is a concern that is shared across the economy. it is not uniquely european. i think the european specific issue is whethe

services c n brussels to come up with a sound legal basis and for sure this will be challenged in european courts and also in german courts but the chancellor and also the french president is saying these are extraordinary circumstances we have to come up with something and italy and spain are already rather coming this step because this hints to the coronal bones these are corona bones like now the countries giving away the money but they have to pay back the money 20 in over 20 years and all member states really ground for this money and this is something completely new ok so still a lot more work to be done when to can when it comes to building consensus for those initiatives of the plan also giving quite a bit more power to the european commission is that another reason why this is raising some red flags around you capitals. this 500000000000 euros shall be channeled through the european budget that they give the commission control over the hand out of this money and the commission can also control how this money is used some countries like italy and spain wanted to lose a hand on the money b

the crucial thing is that the european court has not properly examined whether the ecb took all potential options into account when it made its decision. that is the main charge. and i think that, frankly, relatively easy to overcome because clearly the ecb has done tons of analysis. potentially every nook and cranny in this thing. the question is whether they will be willing to say, all right, we presented analysis and we played ball and here we go. what i reckon is going to happen going forward is that it is going to be treated like an internal german problem where the bundesbank taste charge of this -- takes charge of this, and they go ahead and say that is good enough for us. that is the immediate question. adon't think it will be changed anything with the ecb here and now. tom: so you are suggesting that we are going to see a greater federalism to help europe come out of this economic crisis? peter: well, that is a slightly different question, but, yes, i do think so, too. but again, the stress here, as with everything in europe, is probably flight. i don't expect that we are seeing

at than a german constitutional court disagrees with the european court of justice, and this is an inversionf what we normally understand by the judicial hierarchy in europe. it appears the german constitutional court simply goes back to the german constitution and pays no attention to the fact that the germans have signed lots of treaties in setting up the ecb, which in an important way dominate that constitution. i think this is a significant european legal crisis really, in which the ecb, unfortunately, is the tennis ball in the middle of it. i guess they can find a way of working around it in practical terms, but it is not a healthy situation. tom coates or howard, with that said, there has to be -- in my , with that said, the has to be a way of positioning the german court, massaging it with terms and language. what is that institution? howard: the problem with eurozone for some time has been that there are things that need to be resolved in the way that euro works, which require a treaty amendment, the most obvious one setting up a robust deposit insurance scheme on a pan-european basi

the european central bank is defiant in the face of the german court ruling. criticizing its bond buying program. it is pledging to continue doing everything necessary to revive inflation. in a statement, the ecb also noted europe's top -- previously said the qe program is illegal. german judges are giving the central bank three months to prove the asset purchase program is in line with the law. to disney. they have taken a 1.4 billion dollars hit from the coronavirus. and the worst may be yet to come. earnings plunged by more than half in the quarter. revenue rose 21%. that was driven by the purchase of fox's entertainment assets last year. they seem pummeled particularly hard. one bright spot is we did see a recovery in china. peers inining its warning of a slump. it sees the impact of the coronavirus pandemic lasting longer than expected. it does not see car sales returning to normal in the coming weeks. it expects the second quarter to be even worse than the first. that matches up with the guidance given by ford, vw, both of whom expect to lose money in th