not least of which the bank of england and the ecb. it's releasing its forecast for inflation for the year. they're pretty skeptical of any moves to bring the deposit rate below zero. geoff joins us with his own thoughts. geoff, plenty of discussion as you know about your trip around eastern europe. what's the discussion centered around today? >> well, you know, there's been a lot of back pedalling since that meeting. on a couple of fronts, to be honest. first, we had a number of other council members who appeared to contradict mr. draghi's comments that they were looking at the technical fees nlt of a negative dmoft rate. then we had that other story running alongside about funding the small and medium sized enterprises through some broader asset backed securitization program. again, another absolute of council members who came out after that and said, well, is that such a good idea? do we really want to take the pressure off of government to continue the reform process? so that brings us to frankfurt, rather pleasant day here in frank

newspapers and that they should not lobby the prime minister or the finance minister to pressure the bank of englandck down on bank supervision. so, this taking place just as we're on air. we'll continue to keep you up to date with what's going on. the this is a live picture of the bank of england. governor king speaking in testimony there for the last time at this treasury select committee hearing before he leaves his post. >>> the japanese rail and hotel operator seibu holdings held a meeting today and reject ed cerberus's proposals. now we have a report live from tokyo from sachiko. >> the larkest shareholder, cerberus recommended former u.s. vice president dan quayle and seven others to become directors at the japanese company. cerberus hopes to win more influence and bosk profitability before selling the shares but rejecting the proposals, the president said that the fund's actions are hurting corporate value and a letter was sent to shareholders asking not to let cerberus use their proxy votes. cerberus has spent more than $1 billion acquiring its stake in seibu, which was delisted from tokyo

on top of fraud added on to the concept of fraud well mark carney is coming in to be the new bank of england chief and he's already been able to negotiate his running of the compliance divisions share of the oversight of the banking establishment in the u.k. i predict they'll be a bit of a power struggle until forced george george osborne i don't think i don't think george osborne will last in the next election i think he'll be dumped as the chancellor that could be true if you look at this next headline because there's a jobs fair going on as we speak build a bird guest list includes george osborne and ed balls confirms also set to attend secretive groups four day summit being held near wofford so george osborne and his labor shadow ed balls are going up to the build a bridge group. jeff bezos from amazon is up there google all these people who are right now under scrutiny for avoiding taxes and in fact often paying no taxes here in the u.k. despite selling billions they're going up there it's a secretive meeting as you say they could be offering him jobs in fact build a bridge for the very

kang this is his last week in the job as governor of bank of england next week mark carney from canada takes over will the new regime be better or worse for savers and what about inflation. i think almost system the kohen the easy going to be somebody who's going to to want. come up with more comes to be using a company that is going to want to do nothing i mean when anybody comes to do your best thing always is to do nothing but of course everybody wants to prove the good reason they've been paid moves amount of money and an immense relocation allowance so i'm afraid i think on the that was a wonderful canadian news program recently about central banking about quantity of easing what effect is out on savers and con he was interviewed and he seems to have no sympathy walked so well for savers so i don't think that it is up to coney we're going to have good time ahead but of course since the fed talk about tapering we all see in rates generally going up with or it's temporary or not i don't yet know . the interest rates have been inching higher not as a result of policy but as a result

which is one they like is to not only present the bank of england mitts it's going to get to over three percent which would mean it's going to go higher who is the real rate if you look at the very most people reckon it's about it's about double what it's all to tell i was looking at various substances in the show as well i think you present well it's hard to tell with unlike the states where they have this wonderful website called shadowstats where they calculate all the indices the way they work calculated for people like tinkering with them well that's fantastic we don't have an equivalent in the u.k. a couple of people try setting things up and it looks as if addict only speaking if you look at the price because. people actually buy i mean potatoes going up forty percent in the last year ok i'll say let's say it's between five and six percent the real rate of inflation was the rate of which wage growth in this country right now oh it's about where it's going to tools going with a less than one percent that's right yeah i mean people are you lot we have all the choices yeah it's not

banks. no wonder the finance minister wanted the head of the canadian central bank to come run the bank of england. >> when the crisis came in the fall of 2008, he was very effective and very helpful and we work as a team together. >> you crossed over there to steal him. i was not shocked. he told me that he had decided to go. >> he cannot take all the credit for what happened, but he seems to have one over the press. he is being called the best governor that canada has ever had. even the wayne gretzky of central banking. wayne gretzky was a famous canadian ice hockey player from the 1990s when the country suffered years of austerity of slow growth. it was painful at the time. the government could have fought to go all out support in the economy. in the boom years, they were teased on wall street in the city of london for being too cautious. welley have been quite managed. the financial institutions have exposed to some degree, but we were able to manage through this effectively. >> he cut interest rates and that gave a much bigger boost the economy. banks banks were willing and able to land. that

as well they're seeking a massive bail out everything goes back out of the central bank's balance sheet weathers the bank of england's balance sheet went from eight hundred billion pound losses to over three trillion under mervyn king the federal reserve bank in the united states has inherited now something upwards of five trillion dollars worth of new debt in the last i think what twenty five you know twenty four months or so so this all comes back to the same kind of accounting fraud that we're see endemic throughout the world now. what's the current default rate on the forty billion pounds of student loans and what's the state of this what's the default rate because that's the one way that will judge a loan book well this is why the different loans you can actually default on them because they're income contingent you pain it's like a tax you pay nine thousand over an earnings threshold in repayments then them dischargeable in bankruptcy you can enter into individual voluntary arrangements to get out of them and a certain sense it's only death or disability. you know has the balances written off or this long term

at this point, investors in europe are waiting to see what the central bank does, the bank of england and the european central bank both set to anoins policy decisions this morning. the bank of england is coming at 3w7 o'clock eastern time. the ecb is 45 minutes later. the bank of england is expected to keep policy steady. you take look at governor mervyn king's final meeting in charge of the central bank, this is it. he has been arguing phenomenon an extra $38 billion of bond purchases. he is not expected to convince policymakers to okay that idea. the ecb is also expected to keep its main interest rate unchanged, but investors say that they'll be paying attention to any tweaks in the ecb's economic forecast as that could give an indication of the future direction of policy. >> can you use the close or the intra day high? >> the close. >> close. >> most people are dramatic. >> people have mutual funds, they're looking at the closer. >> but this is the media. >> all right. do both and then we'll figure out which one we like. >> that's going to take me more time. >> by the way, the leg

signs that this sector is recovering, we'll have further wait for the bank of england's decision to waitee. we've got mervyn king's last meeting this week. he has consistently voted for an expansion of qe by another 25 billion, although the majority of bank of england's monetary policy committee have voted against that. anyway, that's taken sterling to 1.5279. this survey suggests a broad based improvement driven by new orders, particularly from the domestic market. job creation was reported for the first time in four months. input cost inflation also easing. we have seen a decline in commodity push innation, as well. so better news for the uk. meanwhile, the ftse down nearly 1%. the ftse mib down 0.75%. not helped out by the composite pmis we got, as well, this morning for the eurozone. at the same time, we were waiting for more news, as well, out of the uk on the latest funding for lending, as well. let's recap, though, the headlines. before that, stocks around the globe kicking off the month in the red as p mi shows asia's manufacturing giant are slowing down. hsbc for china lowest in

we'll go all the way through to the bank of england minutes, as well, due out in half an hour -- 25 minutes, i should say. and also full coverage of the fed's decision and bernanke's briefing from 20:00 cet or 2:00 p.m. eastern. we'll also bring you you analysis from adam posen, he'll join us in just over an hour's time. if you have any questions for adam or mark, e-mail us worldwide@cnbc.com. worldwi worldwide@cnbc.c worldwide@cnbc.com. >>> meanwhile the south african counter deficit is out. it has narrowed to 5.8% of gdp. the rand has seen an awful lot of weakness fairly recently. >>> u.s. president barack obama is due to speak from the brandenburg gate later today following in the foot steps of several famous predecessor including john f. kennedy who was at the same spot nearly 50 years ago, and it's five years after president obama's pre-election address which was credited with giving him international star power. the president is now expected to receive a cooler reception in the german capital where he's meeting with the german chancellor angela merkel of the bank of the g-8 summit. jo

bank of england financial stability extensive review is being published right now and warning a sharpng on wires. we'll keep you up to date what the bank of england's findings are. they will scale back liquidity buffers. we'll keep you up to date. >>> europe's markets trading in positive territory here in this morning's trade. we're seeing buying back into some of the unloved, some of the unloved spector, today's session. we need to cross out to taylor who is live in sidney on the back of what looks to be some changes at the helm of the political arena, matt. >> reporter: yeah. that's right. we just got this statement coming out now. let's listen into the verdict from this latest ballot and see exactly who has won this poll. >> at 45 votes. >> i've just come from counting the latest -- i tuned deputy is making a statement at the moment, but i thought i would come straight out -- >> will the lab new deputy? >> identify come out -- >> did kevin rudd let julia gillard speak before the vote and did julia gillard speak after? >> both actually spoke before the vote. julia gillard moved the

like in the early '90s when george zoros and the bank of england were going at it, the in flexion point was when it was perceived there was more money to be made, challenging the bank of england and going along with them. many traders think we've reached that fulcrum, that pivotal point with the fed. don't fight the fed, that used to be the mantra. many believe it might be more profitable to challenge the fed, and that's where you got to watch. >> rick, i don't want to steal the thunder of what's coming up here after the first break, but i dug through some old fmc reports, and i may be able to make a case historically that the fed is the perfect in verse indicator that when they think things are bad, you should buy, and when they think things are good, you might want to sell. >> yeah, i can't debate you on the fundamentals of things like their forecasts, but i think their actions in that regard are inversely correlated, so i would tend to agree with you. >> all right, rick santelli, thank you very much. in the meantime, let's find out what's happening with metals. metals have kind of be

bank runs itself. it's compod of 15 governors fm around the world. forxample the governor of federal reserve. bank of englandank. >> lu: you've been a orrespondent through your career. do you believe it toe a benign force or a force that is sewhat signifantly sinister? >> i don't think it's sinister in itself. what we know, we want more infmation what goes o there. this isn't a bank that is out to ruin the world or be malevolent. but it' veryecret because it was set up in 1930. it's an average of deference to autri and did what they were told. nowadays that doesn't work any more. >> lou: perhaps we are becomimiig more submissive andassive, certainly in this country. we accept it. there are those that resi the federal reserve, an important part. i compensated the booko you. ada lebor, the book is "tower of babel," adam great to have you here. we'll talk more, longer. that is it for tonight. you think they could have broken earlier, tomorrow. john: wre at war against terror. >> this warlike all wars must end. john: so that american is wage war on apple? apple keeping massive profits overseas, a war on hate cri

they have introduced the and put the bank of england in charge of regulating our country. what we should be getting from him as an apology and a thank you for clearing up the mess. >> one should be grateful. [laughter] for being thehim first conserve department store to support a referendum and a a government that has done more than any to tackle welfare dependency to reduce immigration and to bring in academies. there by showing, a can be a conservative at the same time. >> thank you for the question. on behalf of everybody on the house, congratulate him on his knighthood. he served in this house for many decades. he also served in the vital role of overseeing and -- the anmittee that provides important service. i would urge all colleagues to come to the house on july 5 and vote on this bill. >> thank you. if the prime minister proud of the fact that on his watch 300,000 more children have been pushed into absolute poverty? >> we have protected the poorest of by increasing the child tax credit. the most important we can do is to get more people into work. there are now mo

here the deal clincher if you well would be on an institutional level that of the central banks including the bank of england they're bringing in mark carney who's a fraudster from the moment of do you say go from the bank of canada and i think this will light the blue paper of complete insurrection in the u.k. because he's going to start printing money with reckless abandon inflation is going to start raging and wages are stagnant and dropping and if you thought the poll tax riots were hot and. whoa we're going to. ever covered one guy's report don't want. your job more. so in the united states if say some occupy wall street protesters were going to be meeting in front of bank of america to protest these crimes these ongoing crimes those protesters would be met with pepper spray to the face gas tear gas thrown at them was so why are these bankers allowed to walk calmly in there and continue committing these crimes and so you mentioned that part of this criminality is covered up by the central bankers through their quantitative easing in various cover ups for banking crimes so i want to go to the final headl

over the past five years so here you ripped off one hundred forty billion pounds of corn the bank of england by depriving people the savings of their savings account is going to give it back to you know a nickels like here's george osborne of the adversary for cash this between your teeth and let you keep it you little street scum he's the biggest or the u.k. but if you like but obama and eric holder they're not cute like george osborne i mean i can see george osborne in a dress and lipstick and he could almost go that way well so to look again back at this conspiracy against the public by men of the same trade i want to look at this map of prism and this is actually from the boundless informant data provided by i guess booz allen now that we know the guy edward snowden worked for booz allen at the time of the these documents this is a map of where their high intensity so green is they're not actually looking at that much data crossing the internet they're yellow and orange or more and red is the most as you see red is the most is over around the oil rich areas but curiously if you see china

we'll also get minutes from the bank of england on wednesday. mervin king's last meeting. ill be interesting to see whether he was outvoted. he voted for an extension of qe3. but in july, of course, we get mr. carney's first meeting. there will be some expectation about what will happen with him as well. yields just a little higher today. certainly that 2.3% below the near 2.3% we hit last week. >>> japan and the eu are in talks to establish a mutual pact to streamline safety inspections for exported goods between the two sides. let's get more on that. our reporter from the nikkei joins us from tokyo. hi. >> reporter: hi, ross. the mutual recognition agreement between japan and the eu is aimed at promoting trade by removing overlapping approval procedures for exported goods from both sides. for example, japanese exports that meet domestic safety standards currently have to be reinspected from scratch in europe before being allowed on the market. the new agreement would let all inspections be carried out and concluded at the point of origin, saving time and cost for exporter

what we needed is to stick to the plans we have set up, have a sensible fiscal policy so the bank of england can keep interest rates low. one piece of advice i won't be taking is on saturday the leader of the libby pardon city want to control borrowing but on sunday the shadow chancellor said borrowing would go up. so perhaps the leader of the labour party would admit when it is tuesday, labour would borrow more. >> ed miliband. [shouting] >> mr. speaker -- mr. speaker, last may the education secretary said, and i quote, work will begin immediately on 261 projects under the priority school building program. can the prime minister delta house how many have begun? >> what i can tell him is infrastructure spending under this government has been higher than it was under labour. we have around 14 billion pounds reserved for capital spending on our schools. we have had to clear up the appalling mess left by the building schools of the future program. >> ed miliband. >> i don't think he knows the answer, mr. speaker. i'll tell him the answer. the answer is, 261 schools were promised, only one has s

nail in the coffin of any more qe from the bank of england for now. a week of stronger pmis in both construction and manufacturing. but of course, the debates now turning to what happens with the qe program in the united states? are we getting our knickers in a twist about tapering when it starts or when it doesn't? we'll get the views of howard marks, chairman of oaktree capital. he'll be joining us for an exclusive interview throughout the next half hour on "worldwide exchange." find out why the man who runs nearly $18 billion is bullish on european corporate debt. the next hour of the program continues right after this. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ a

bank of england the treasury would surely not allow an independent country to operate the punt because that would be giving the scottish government power without responsibility and the westminster or thought it is in the city would have no authority over what the scottish government the newly independent scorcher state was doing with the currency doing with rates of tax doing with interest rates and so on so that's an impossibility so the possibility a marriage is of joining the euro well how's that going who in scotland would be persuaded to go quietly into that good night there have been occasions when the scottish independence movement has floated the idea of scotland does iceland and as i don't know the republic of ireland before it sank and of course the republic of ireland is in the euro but the icelanders are not and we know the ash that enveloped the currency and indeed the economy in the whole society so the question of which money the independence quarter state would use is a moot one. but of course the more serious problems are that an independent scotland would trigger a ra

money went to the b r yes the b i has distributed that money to its shareholders and included the bank of england so through the b.o.'s nazi germany was funding britain even though the two countries were at war. there and what ways did that be i as a work with the nazi party during the war. where the there was a very strong german presence on the board of the b.o.'s the waterfront the president of the right spank and his deputy and all pool who was the vice president of the right spang would both be i.a.s. directors as well as a man called home and schmitz and herman schmitz was the c.e.o. the boss of the notorious german chemicals company i g farben which ran its own corporate concentration camp auschwitz and also manufactured cyclone b. the gas used to murder millions of jews so germany was very had a very strong presence on the border the b.o.'s the b.o.'s did a lot of foreign exchange deals with a rice spank in the second world war and it also carried our other services for the for the germans and the relation was so strong that poole who was the vice president of the rice bank actually said

this new era where the very aggressive policy is being pursued by the us by the bank of japan and others the bank of england for that i think for some for some policymakers a somewhat appreciating currency is not a bad thing eight discourages capital flight be it paves the way to remember the internationalization it's very interesting of this in shanghai a couple of weeks ago to see the governor joe of the people's bank of china is talking open internationalisation of the art is amazing and opening up the cap look at that used to be discussed as something in the very distant future and policymakers are not talking about this is if it's going to happen this year so that is a major change and i think we're going to see r. and b. regionalization increasing use of the r. and b. in international transactions and in that sense the days when policy was just we currency exports and growth by. policy's gone. that was neil ferguson author of the great generation stay tuned because up next we'll play my interview with ben willis from the floor of the new york stock exchange we get in the high frequency trading both th