europe can acquire the will and the wherewithal to go the next step. and if you like an economic space, look at canada and nafta and mexico and the united states. almost as big as europe. they have free trade. but who wants to get together -- the canadians want to get together with the united states or with mexico? so you've made a case for an economic free trade zone. i'll grant you that case, but it's not what we're debating in this room. >> danny, come in on this because you're sitting in the european parliament every day. so you're at the proverbial mountain face there. why do you think you can scale it to a greater level of integrati integration? >> to european law, for exactly the same -- the problem that you talk, it's called europe and chinese and two pacts, there are eight laws. the governance of the european economy or the banking system, the organization of the banking system, the need -- the need, how the stability should be realized by all the country. it was decided by the european parliament, and it is now since the 1st of january a law in europe. and you will see that what happened, right? when the german and the french break the stability pa

europe can acquire the will and the wherewithal to go the next step. if you'd like the economic space look at canada and mexico and the united states. almost as bigas europe. there are free trade but who wants to get together? canada wants to get together with the united states or with mexico? you have made the case for economic free trade zone. it is not what what we are debating in this room. [applause] speak, and on this because you are sitting in a european parliament every day so you are at the proverbial mountain face there. why do you think you could scala to a greater level of integration when we are seeing a lot of unity in europe right now? >> i gave you the european law. there are eight laws. the governance of the european economy and the banking system, the organization of the banking system, the need, the stability should be realized by other countries. it was decided by the european parliament and now it is the law and europe and you will see what happened, right, when the germans and the french -- and no, who wants to be ruled? no, no, no. i don't need a father. my father died when i was 17 and i don't need another father now. stop

germany is the strongest economy in europe yet it cannot be completely immune to shocks from other countries, particularly if those shocks were to come from countries as big as spain. greece is about 2% of the europe ann economy and spain, 11%. it's on a whole different scale. if spain were to have to ask for a bailout, and there are no plans for that at the moment, but i if it needed money from outside, that takes us into a whole new faze of this crisis. >> and from president obama and british prime minister david cameron last night when they were urging euro zone leaders again to try to find some way out of this crisis. whatever happens, whatever happens in brussels, there will have to be closer collaboration between nations, won't there? >> there is. the problem with the banking sector is the banking systems are increasing internationally across the board yet when they come into trouble, it is still a national responsibility. so spain is responsible for spanish banks and so on. so now they want what they are calling a banking union where by those responsibilities would be spread across the entire currency zone. the proposal announced today are being de

>> i have no doubts that the fed will be there if there is some sort of big financial dislocation as a part of europe. the problem as it stands now seems me though is that have you diminishing marginal return of quantitative easing or more easing on parts of the fed. interest rates are already so low what wonders what more monetary stimulus can do. that's also i think what chairman ben bernanke was suggesting, was say, listen, congress, it is more on you at this point. if you want the economy to grow, monetary policy has probably run its course. we can help out with liquidity but can't help out with larger changes that need to be happening. >> we've corvered this fiscal cliff a lot looking at this issue where year end tax cuts and spending programs will expire. the need to raise the debt ceiling will also be an issue. ben bernanke is also urging congress to avoid the severe fiscal tightening in thor in term. do you think anything will happen before the elections? >> sadly be i don't think so. i would say chances are 100-1 they're kind of successful in dealing with this. the big implication of this th

europe. he says the debt crisis is a very big test for europe as a concept and he doesn't believe a greek exit from the euro would be a lehman-like event. the goldman sachs ceo was testing again in the trading trial. >>> angela merkel set in a tv interview that europe was ready to act to ensure stability as fitch cuts spain sovereign rating by three notches today. by some estimates spanish banks need 40 billion euros to keep their doors open. when larry comes back, his exclusive interview with house speaker john boehner. you do not want to miss it. a living breathing intelligence bringing people together to bring new ideas to life. look. it's so simple. [ male announcer ] in here, the right minds from inside and outside the company come together to work on an idea. adding to it from the road, improving it in the cloud all in real time. good idea. ♪ it's the at&t network -- providing new ways to work together, so business works better. ♪ so business works better. recently, students from 31 countries took part in a science test. the top academic performers surprised some people. so did the count

almost as big as europe. they have free trade. but who wants to get together? the canadians might get together with the united states. or with mexico. [laughter] so you made a case for an economic free trade zone. i grant you that case, but it's not what we are debating in this room. >> hear, hear. [applause] >> danny, commept on this because you are sitting in the european parliament every day. you are at the per verbial mountain space there. why do you think you can scale it to a greater level of integration when we are seeing a lot of political disunity out of europe? >> i give you two european law. the problem you talked. it's called european -- there are six, eight laws. the governance of the european economy, the banking system, the organization of the banking system, the need, how, the stability should be realized by all the country. it was decided by the european parliament and [inaudible] and you'll see what will happen and you were right. josef, who wants to be ruled now? no, no, no, no. i could comment on something. i don't need a father. my father d

big argument here, not the petty one. that's the large one, and that's as big as this election itself and it goes beyond that. in europe, there's a debate about austerity measures, how much the government needs to cut back and how much it needs to invest. the president saying that europe is rumbling and don't blame me because of what's happening in europe and it happened in wisconsin. happened in wisconsin was a version of the same argument at a state level. >> what happened in wisconsin, it started as a debate many months ago about what you spend your money on and because of scarce resources, what you spend your money on in a time of big deficits and governor walker decided they wanted to have public sector unions participate more in pensions and healthcare than they had before so this started up a huge fight because the unions thought this is a direct shot at our benefits over the years and if walker's able to do did in wisconsin, it's going to happen all over the country, because there are lots of other republican governors who won in 2010, who want to do the same thing. gwen: a couple of democrats, too. >> that's t

because china -- we talk about china as our biggest trading partner as a whole europe is as big an economyited states is and as we have been recovering in several fronts in the united states we found our consumers, those people in europe who buy our goods have not bought. so i'll give you a good example. general motors and ford which have seen a remarksable resurgence in the last year are suffering in europe because europeans can't get credit like we couldn't a few years ago and are not buying as much. concern about europe dragging its heels and not coming to a solution to fix its crisis is becoming a very real problem at home and you've seen the sentiment, wolf, in europe about throwing out leaders because the economy has not improved. president obama who has been watching this economy slowly improve since he took office in the beginning of 2009 is now very, very concerned that that sentiment will come ashore in the united states and people will blame him for something that is going on in europe and causing our economy to slowdown. >> stand by, i want to go capitol hill. kate bauldwin is

as well. from the u.s. europe and latin america. >> and big bankruptcy to talk about as well. >> stocks expected to vote forhapter 9 bankruptcy section. could be the biggest municipality to ever file for bankruptcy. 3,000 residents hard hit by the housing bump. 15 and a half percent crime ridden city right now. homicides are up 57 percent past five-years alone. definitely in dire straits right now. >>> back in the news facebook. >> updating your status. check your e-mail account they have changed people's e-mail to a facebook issued e-mail it's now your default whether you knew it or not. they put the notice at the top of people's home page. it is an easy page go to contact information edit you can switch it back to your own e-mail address. >>> as always robert gray. catch you on the business network. >>> patti ann? >> it is 18 after the hour. one town is threatening to fine people thousands of dollars if they feed the birds. is that fair? we will report you decide. >>> we know your credit card can earn you airline miles. but did you know credit cards can help you find lost luggage? personal finance expert

european monetary union was conceived as a concept to create a big competitive europe that could compete competes with the united states needs etc etc and they knew very well that at the beginning of the euro there were large inequalities in europe so they knew it and they said oh it's no not a problem we create a system. called the jones. and that was a treaty of mastic the norms of maastricht and they said no we're going to level up all the countries to prepare two thousand and two into the introduction of the euro and now we are ten years later and we see that the inequalities in europe. level to at zero but it's created more inequalities than ever in the last fifty years in europe and of course the country in focus right now with spain again we're seeing the same solution being prescribed assets prescribed to greece and ireland i think really that the financial sector in all of europe should be transformed tyrannically in that we need the public sector in firings in all over europe because now they can be allowed spain into a. but it's all a very short term measure as it's structural

you with us this is still to come for you in the program radicalism takes a pretty big hold of europe is the ideas spread as fast as those opposing them as government struggle to understand which sentiment poses a threat. not exactly ten minutes past the hour here in moscow where the b.b.c. has acknowledged that it's journalists got carried away in covering the arab spring and that excitement affect what's supposed to be professional new trying to see a softer report was released suggesting the u.k.'s leading news broadcaster was not accurate enough in its assessment of the revolutions that accuse the organization of being slow to highlight human rights abuses by rebel factions in the libyan war and under estimating the violent nature of the syrian uprising as it began it also says the b.b.c. failed to deliver rushers on china's positions on events unfolding in the middle east and north africa t.j. walker c media training worldwide says the criticism comes as no surprise. let's not forget the b.b.c. used to be the gold standard in part because they just didn't have that much competition to get its. always s

helps bring budget on control and the europe yo avoiding what some call a potential disaster as they back out. big problems remain in greece and the western europe and the rest of the countries are still shaky the problems in europe don't just stay in europe nther are deep trading costs. will help in getting the economy back on track. people glam europe again and again for national troubles. national security issues at the summit as well. president obama sits down one-on-one with vladmir putin. >>> the new plan will allow for young illegal immigrants to stay here in the u.s. >> oo this is a move mitt romney is calling politically motivated because it is done in an election year. >> i think if he really wanted to make a solution that dealt with these kids or illegal immigration in america this is something he would have taken up in his first three and a half years not just the last few months. he did it with policy. that is certainly a big part of the equation. >> firing back at romney's claim if the president was serious about immigration reform he would have done it before now. listen to what he

something for everyone sitting just east of the you reach the country's border between europe and asia this isn't as big a diverse area of more than three million people there's a bustling capital city to enjoy for the nature lovers some of russia's most stunning country something that is right on your doorstep. as well as being very beautiful this is also a very significant part of the screen. over there it marks the start of the european europe.

europe, elsewhere as well dragging conseo on sentime. financials are down not only in europe but here as well. >> we're seeing a big pop out of the vehicle. volatility metric for s&p 500, 3 points to the upside, an 18% move back to the up side. but futures are not moving like that. >> let me just get to you hold your thought for a second, bring everybody to attention to look at the headline at the bottom of our screen now. the greek finance minister to resign. that is reuters quoting the prime minister's office over in greece. so we'll continue to follow that story. but that clearly just exacerbates what we're talking about. uncertainty in the eurozone is the headline of the day. >> yes. people scared about what's going on over there. obviously there's back room dealing with what's going on given this resignation that was completely unexpected here. so i think people are doing what they do when they panic. that is they are reaching for protection right now. that is probably a pretty good sign that the markets are very nervous. >> joe, they are certainly nervous ahead of this european summit which is going to take place later in the week.

so, tony, for an american audience, explain how big a deal this is in europe as a matter of nationalide. >> well, jk, when nations come together on the soccer field the temperatures run very high. keep in minds that this is 16 european nations, many of them very, very close neighbors and you also know what happens when neighbors come together but these neighbors are tied together in many ways but they are so far apart politically i don't think that i've ever come across a tournament where the tension has been so high off the field. it's one thing to lose to a nation because you have a sporting rivalry with it, but to lose to the nation that you have political differences with it is absolutely shattering for the fans and this has been incredible to see. >> suarez: you've never seen it before, even though some of these countries have a history of war, a history of all kinds of problems but there's a particular tone this this one? >> yeah, i think because you know if you look back to the second world war and you can say yes, russia, poland, germany and greece, they all have a lot of dif

>> i have no doubts fed will be there if there's some sort of big financial dislocation on the part of europe. the problem as it stands now seems to me is that you have diminishing margin on return of quantitative easing or more easing on the part of the fed. interest rates are already so low one wonders what more monitor stimulus can do. that's also what chairman bernanke was suggesting which is to say, listen, it's more on you at this point, if you really want the economy to grow. monetary policy has probably run its course. we can help with liquidity, we can't help out with larger structural changes that need to be undertaken. >> we've been covering this fiscal cliff a lot. on my program, on cnbc, basically looking at this issue where at year-end, tax cuts will expire, spending programs will expire, the need to raise the debt ceiling will be an issue. bernanke's urging congress to avoid these severe fiscal tightening in the near term. do you think anything happens before the elections? everybody's talking about this. >> sadly, i don't think so. i mean, we have washington in office, i would say the chances

big exposure in europe. tommy bahama with big growth and in china, that's the space i would be looking a the today. >> more evidence of continued economic downtown in china asity slowed for the eighth straight month. joining us now with your second laugh play book on china is jing ulrich, chairman of global markets china. ms. ulcich, great to have you on show. thanks for spending time with us today. >> thank you very much. >> what's the real story about what is taking place in china. we have had esteemed guests on the show, whether steven roach or john rutledge, talk fairly glowingly what happens there. while their concerned may of heightened of late they still don't see a hard landing there, do you? >> you know, the ma crow economy will not have a hard landing. we are watching different sectors. in heavy industry. steel, aluminum sector, they may have a hard landing. it is important to keep your mind, they are investing in stocks. not in the gdp. so you have to really differentiate between the mac troe economy and sector outbook. >> maybe this isn't the right word to use, but i think of the word decouple. when we talk about that. . if you say a anything or

as ford says international losses are tripling in the second quarter. maria. >> wow. all right. thank so much, phil. big move in that stock as well. we are talking about europetoday. at the end of the day, lots of speculation. that was one of the reasons the market came almost all the way back. will the europe news overshadow the u.s. consumer confidence number? out tomorrow. with 30 seconds on the clock, our next guests tell us why you should be watching and what you should be watching for tomorrow. peter, we kick this off with you. 30 seconds on the clock. what do you want to watch in tomorrow's trading session? >> with markets primarily driven by monetary and fiscal government policy around the world, we have no choice but to watch the eu summit and see what kind of hand holding germany does with over oththers. i don't expect much. unless germany and europe deals with the crux of the problem, that's too much debt, then everything is just pushing things farther into the future. >> all right. you think that's why the market came back today, because they cancelled the call? >> yes, but maybe they wanted to just watch the soccer game. >> all right. thank you.

more cautiousness about where the industry is right now and europe is a big part of that and broader economy, asrian? >> if something goes south in europe, it affects us, for sure. >>> now the bond market. rick santelli, let me get this straight. equities are up and bond prices. >> yeah. it's fascinating. we see equities up and treasury price up pushing yields down. look from brian's talking about. intraday chart. down about half a dozen basis points. 158. settling at 164. you really want to have some fun? remember, two weeks ago today was the all-time low closing yield at 145. so let's start a chart at june 1 z. we also this week wednesday had the lowest interest rate at an auction which was 1.622 for that same 10-year maturity. what will happen sunday night? i can't tell you but i can tell you this. the credit markets don't seem to be enamored with the votes out there and affected the one-way trade of many safe sovereigns over many, many months. currencies, look at the euro intraday. it's still holding strong above 126. hey, the bank of japan might not have done anything but many suspect they

that was seen as a big threat, as you said, harris, there were concerns not only around the rest of europe, but around the world that the ripple effect could create financial turmoil. and for now, eurogreece remainsn the euro zone. i've heard you talk about this on the fox business network, a little more certainty that can be injected into the markets now. when he we wake up and our stocks begin trading what can we expect to see? >> oh, i think we're going to see a nice boost, if you remember the end of last week, central bank said they were watching this election very carefully, worried there was going to be financial turmoil, if the election didn't go the way they would like. and they said they would do what it takes to stabilize the market. now we have the election and gone the way the global markets would like and i think we'll see a nice push forward tomorrow and we'll see markets gaining as we've already seen in asia and as you mentioned, the euro strengthening and greece is in its fifth year of recession and it does not cure the debt crisis, we have concerns about spain and the ital

europe looming. any thoughts how these big events play out that will very likely dictate where these markets go? >> i think there is this stealth res resurgence that people are not appreciating. asdlines in europe, a lot of people lose sight of the fact that that is the other side of the coin. it's remarkable to me that air bus, for example, is now opening up facilities here. we have much better wage and labor situation, and of course natural gas prices here, so i will see a huge courage in capacity, moving from the developed countries like europe, canada, and i'm hearing capacity to china. i expect that to continue and we expect to hear more of that. >> that's good for the u.s. from a economic perspective. if people believe those are fundamentally responsible in general for lower ratios than might be realized, while that will benefit us economically, that does not drive stock prices higher. >> while correlations between the u.s. and europe are remarkably high, we can't lose sight of the fact that performance has diverged, the s&p outperformed europe by 456 to 50%. so let's forget ringing correlation, and mouf ove our assets, i think we will be able to steer clear of these marke

such as the argument that has gained traction in crisis hit europe with soaring unemployment recent elections in france and greece showed a big gains for the far right and immigrants say they've increasingly been on the receiving end of prejudice in many forms. in all of europe a woman with a veil can go into any shop and buy anything she wants but a veiled woman cannot work in this shop but what is in the report it is the discrimination and racism in the everyday life the people are facing because they don't trip or because they don't trust the police so every. when you get inserted on the street or issue a muslim woman that you had gotten stricken off of you have whatever you don't report simply a two thousand and ten report by the european network against racism and discrimination found that racially discriminatory practices are widespread institutional in nature and practiced at all levels of society across europe in two thousand and eight the european commission proposed a directive that would ban discrimination on the grounds of age disability religion or belief and sexual orientation in all areas including social prote

but the feasibility of those overseas becomes a big question mark as one of the things we need to do is we need to shift the focus of the debate in europe at the moment it is too much focused on on basically day to day fiscal management as to what spread i'm i going to be able to do more that's the big question in the minds of policymakers at the moment for politicians politicians policymakers and so was i don't know if it's because you feel you can be a policy maker in survive yes government ok but politician but the point is the point is that it is the fault the debate over the last year or so you know has been over when we focus on fiscal sustainability and we need to shift it you know to grow the reform efforts more institutional reforms let me give you an example if you're a greek budding entrepreneur right and you would if you want to set up a company in greece it is much more difficult but it isn't russia believe it or not it takes far more procedures and it is far more costly than bureaucracy does your phases and for america to get started it is pretty overwhelming that this we do in the doing business report that the world bank

to go down but as you point out all growth is not good growth completely contrary to that let's move on to europe because that's where a lot of the big headlines have been coming out today and every day it seems as i mentioned in my introduction equity markets there have been pummeled borrowing costs for peripheral countries are indebted countries that spain included have really been rising at the same time we still see the same question that comes as a result of this data what can policymakers do what should policymakers do what should central bankers do lou rockwell when their actions have a seems to do much that has been positive to affect the situation why is this a same question that that people still arrive to. because they're doing the exact opposite of what they ought to be doing in same sense because they not it states by the way a good thing that borrowing costs are rising there's too much government debt too much private debt too but i mean it's vastly. just the mountain isn't quite the word for the amount of government debt in a country like spain so it's a very good thing that the borrowing costs are going up diminish th

announcement like that but we'll see as the day progresses but let's move on to europe it's now the final few minutes of the trade in session there again as you can see no big numbers of big movements per se it's the end the facts are adding ever so slightly as you can see there and basically we know that spanish and italian bond yields have fallen which is a great sign and also we have some positive news coming out from the u.k. and there we know that unemployment fell by fifty one of thousands of just over two point six million in the three months to april and according to the office for national statistics the jobless rate is now at eight point two percent and the number of people in war grows to just over twenty nine million making it the largest. quarterly increase since august of two thousand and ten. thought out a quick look at currencies was that the euro is again in against the dollar when it comes to the ruble those are the closing figures it lost against both major currencies let's take a quick look at how the russian markets and the session as i said a lackluster performance here both the artist and the mind set this around one zero one percent

as big an impact on gdp. we sell three times as much to the emerging markets as we do to europe.be in a recession if china and other countries are consuming. u.s. businesses can do okay. we expect to see optimism here as it relates to corporate profits, better than the really bad preannouncement season is predicting. that means upside surprises. we have been defensive. this might be a good opportunity if you're thinking of buying stocks to pick up shares. >> at the same time, mike, the mighty prices are falling including oil. there is a lot of deflation. we'll talk to richard fisher of the fed in a moment or two about that. i want to ask, can you make a sale? i couldn't sell neel kashkari of pimco, ruu.s. banks have capita plenty of liquidity and cni loans are rising. is there a bank play here? >> absolutely. once again, back to valuations. jeff was talking about if profits are just okay which i think they will be. i'm not talking about economic rebound. just grudging movement upwards slightly through the end of the year. banks are trading. start with jpmorgan, the 3.4% yield and