. >> ecb president mario draghi is under enormous pressure. while politicians are struggling to craft reforms at the summit in brussels, calls are growing for the ecb to support ailing member states by buying up their government bonds. draghi wants none of that. >> we have a treaty, which says no monetary financing to governments. >> but eurozone banks will be able to borrow unlimited amounts of ultra cheap money for the next three years. the aim is to make it easier for them to lend to industry. if they fail to do that, any hopes of growth would be even more endangered than they already are. but draghi was short on optimism. >> the intensify financial market tensions are continuing to dampen economic activity in the euro area, and the outlook remains subject to high uncertainty and substantial downside risk. >> the euro and the eurozone remain in critical condition. draghi said politicians need to make clear decisions and implement them swiftly to regain investor confidence. now it is over to european leaders to forge out a deal. the decision

draghi's statement also unsettled european stock markets. germany's dax closed down 2%, while france's cac40 lost 2.5%. let's see how all of this is factoring in to japanese, into japan's nikkei. tokyo stock prices are down sharply this friday morning. the nikkei currently at 8510, that's down over 150%, a loss of 1.8% almost. the topix is also down 1.1%, currently trading at 736. the ecb president's failure to commit to more bond purchases disappointed market participants. this refueled concerns over the eurozone debt crisis. overnight weakness in new york stocks also dampened market sentiment. let's take a look at currencies as the dollar is moving within a tight range in tokyo trading. the greenback is currently at 77.68-69 yen. the euro at 103.68-73 yen. participants are refraining from active trading as they watch the progress of the eu summit. here's a look now at the latest long-term interest rates. the year on the ten-year japanese government bond down over 1.5 basis points. >>> japan has revised down its economic growth for july to

this comes off the financial times newspaper in which draghi didn't sound quite that sure.e newspaper asked about the possibility of countries leaving the euro zone, he said when one starts with this, you never know how it ends really. speaking for the parliament, draghi defended the staying power of the single currency. >> i have no doubt whatsoever about the strength of the euro, about its permanence, about its ir reversibility. but you have a lot of people, especially outside of the euro area who really spend a lot of time in what i think is speculation, namely, what happens if, what happens if. >> but even as draghi puts a brave face on things, he warned that around $1 trillion of bank bonds, sovereign bonds and collateralized debt obligations will fall in the first months of 2012. he said that could put unprecedented pressure on already strained european bond markets. >>> let's have a look at how european stock market are digesting all of that. the major indices fell at the open. here's how they're trading now. we're looking at the week before christmas and the holiday

>> yes, andrew, we did have a bit of a hint earlier on last week from mario draghi that perhaps we couldee a little bit more support for those countries like spain and italy whose borrowing costs are getting exorbitant at this point amid all of these concerns about rifts between eu members and exactly how to solve the euro zone debt crisis and the viability of a single currency. we saw hints when he gave a statement to the european parliament last week but we haven't had anything official from the ecb saying they would come in and step in significantly to support these markets should we get consensus. there have been some reports circulating that perhaps they could. we haven't had that confirmed though yet, andrew. >> we're watching that one more closely than usual. everything the ecb does at the moment very closely scrutinized. >>> here in arsiasia, investors cautious ahead of the eu sim it. starting in japan, we have machinery orders out today. they were down much faster than expected in the month of october. 6.9% fall for the orders for new machinery. the expected fall was 0.5%. this

mario draghi today coming out saying that the e.c.b. is preparing in case france gets downgraded preparing that then other countries will be downgraded also saying you know hey maybe we're giving these ratings agencies too much weight maybe they need more scrutiny more regulation my question to you as do investors care what the ratings agencies say anymore not anymore you know the rating agencies have blown it they've been thoroughly discredited i mean some of the big ones maybe some of the independent guys like you can jones maybe investors care what they say but essentially the big three have just been ignored here recently when there are some people came around the united states it was really a nonevent in fact i said in advance that it would be a nonevent on my blog but my gosh the problem with the rating agencies is not that they need more control the problem with the rating agencies is there they were government sponsored by the sec it was the f.c.c. back in the then annoying to the big three the rating agency. used to work on a m

the new test will be whether mario draghi and the e.c.b. has enough to implement some bond buying programs. the interest rates for italy and spain to pay on their debt has risen since this announcement. that is cut -- that is not good news. we asked billy blamed what would be the likely implications for investors that we did not see. quite the expectations being greece, to eight fruition. >> we did not get an agreement, but that does not mean that spain and italy go bust tomorrow. it probably means we have a another three or four months of worrying about how they are going to solve their debt crisis. the next e.c.b. comprehensive solution meeting, when will it occur to discuss it? there is more worrying and concern with the global economy and looking at the euro. >> i will have a lot more in the world is this report coming up. more signs that china is slowing. i will have more in 20 minutes. >> the french president -- nicolas are cozy -- he said he would have preferred an agreement including all 27 eu member states. there would be a sign of

he will be talking to mario d g draghi. mario has made it clear he may be prepared to act more aggressively in the european bond markets if there is a fiscal compact agreed across europe and that is certainly what the french and german leaders are trying to achieve. and i suppose the pressure put on by timothy geithner over the next couple of days has caused the pressure from the s&p downgrade may serve to put pressure on other euro-zone leaders on thursday and friday so that they do put their signatures to what's the french and german leaders have proposed, charles. >> diane magnay, many thanks to you. >> still ahead on "world business today" following a bailout and collapse of its government we'll look at how one of the secrets of the debt crisis is now starting to get back on its feet. stay with us. [ dr. banholzer ] every once in awhile there's a moment where everything comes together. where there's magic. and you now understand what nature's been hiding. ♪ at dow we understand the difference between innovation and inve

in europe stock markets have reversed into the red as easy the president mario draghi holds his news conference and is that interest rates have been cut by twenty. five basis points around one per cent and therefore increasing liquidity on the market but also mario draghi has said that we need treaty prohibits monetary financing and therefore we are seeing a negative reaction to the speech meanwhile the bank of england has decided to leave rates and stimulus changed. here in moscow another twenty minutes to go before the close and they are tears in my six have lost most of their gains as europe has reversed and we are waiting the us to open by the way jobless claims have come in better than expected and have reached a nine month low over there if we look at what's moving the my six you'll see the slew of russian companies have reported their financial results most is dynamic space on this. is up by just a notch as first quarter net profit rose one percent to three hundred thirty million dollars steelmaker seven style this hour is down one percent of companies net profit reached one a

mario draghi from the european central bank did stop the cameras a few hours ago. he said he thought it was a very good outcome for euro area members. it's not usual you would have the ecb staff stop and talk to cameras. we don't know what the ecb would do after this, of course. he's please, lagarde from the imf is pleased. you're getting positive results coming out of those people on the outside sort of who have a lot of influence on this that at least now we have this treaty, we have this mechanism. we have this agreement. it may not be all 27 but it's close. >> okay, jim, thanks very much for that. jim boulden live from brussels. nina? >>> andrew, we're covering all sides to this particular story from the politics to the people directly affected by the crisis. and later this hour we'll be in greece, ground zero the euro zone meltdown, homelessness has been on the rise there for a number of months. as harsh spending cuts force people on to the streets. then we're going to be going back to brussels to talk to european council cabinet member richard corbett about t

. >> could you tell us more about mario draghi's proposal with respect to the role of the european central bank? second question -- does this intergovernmental treaty mean that no country will have to call a referendum in order to accept it? >> on the referendum, this is a national sovereign decision. it is not for me to pronounced. an intergovernmental intervention should not lead to a constitutional consultation nor necessarily should be -- should they trigger a referendum. each country will have to make its own sovereign decisions. they have decided it is very important. i am sure that in the days to come, as usual, it will take a bit more time, but people will understand the importance of what is happening. the e.c.b. as not only lower its interest rates, but for the first time in its history to my knowledge, decided to grant three-year loans. they are at very low rates. they just lower it bite 0.25%. let me say one thing -- the central bank, the e.c.b., has definitely decided to lend unlimited sums of money, for instance, to italian banks, at a rate of point to 5%. nowadays the italia

mario draghi spoke about a very difficult situation for the economy and banks. putting pressure again on the dax. there was strong demand for shares of air berlin. the arab airline etihad will become the strongest and biggest shareholder. the shares are worth more than 8%. >> let's take a look at some market figures right now. we begin in frankfurt, where the dax closed half of 1% lower. the euro stocks ended the day almost unchanged -- eurostoxx ended the day almost unchanged. the euro is trading at $1.3005 against the u.s. dollar. united arab emirates airline etihad is increasing its stake in germany's number two carrier air berlin. they have pledged to invest millions of dollars in the next few years to support growth. >> the cash injection could not have come at a better time for the ceo of berlin. it gives him more time to restructure the ailing carrier. in berlin has suffered losses for the last three years -- air berlin has suffered losses for the last three years. air berlin will be able to use etihad's hub for long-haul flights. >> this deal is a beacon

. >> the new head of europe's central bank, mario draghi, has given his first address to the european parliament. he has warned the risk to the region's growth has grown. he called for closer integration of the eurozone economies, if the region is to avoid another debt crisis. >> i am confidence that the new framework will restore confidence over time. i am quite sure that countries, overall, are on the right track. a credible signal is needed for the ultimate assurance over the short term. what i believe our economic and monetary union needs is a new fiscal compact, a fundamental restatement of the fiscal rules, together with the commitments that euro area governments have made. >> the heads of the bank of england also giving his view of the global economy. banks must raise capital to withstand a downturn exacerbated by the eurozone debt crisis. mervyn king says they need to build up capital further. >> the crisis in the euro area is one of solvency and not liquidity. the interconnectedness of major banks means the banking systems and economies around the world are all affected. only

mario draghi, the fairly new president, was fairly adamant that he would not introduce any new bond buying. >> he refused to be a lender of last resort. >> exactly did he does not want the ecb to be the lender of last -- last exactly. he did not want ecb to be the lender of last resort. he is pleased. he has already made some comments. is he pleased enough that it will push the ecb to start buying up some of these debts? the markets are up, but so are the yields. that said, some are very adamant. they believe the agreement reached in brussels is self- defeating. >> the key to this crisis is economic growth. investors doubt that countries such as spain and italy are going to grow sufficiently rapidly to be able to service their debts. what they have effectively agreed to is to institutionalize fiscal austerity into the framework of the eurozone. all governments will be committed to the high levels of austerity -- closing those budget deficits. of course, in the long term, countries need to be sustainable. there's only so much they can do when their economies are very weak. cutting public sp

bank chief mario draghi hinted that today, before the european parliament in brussels.e door to buying more bonds of heavily indebted governments in a bid to safeguard the euro system. but draghi said first, the euro zone nations must link their fiscal policies to prevent runaway spending. >> it's first and foremost important to get a commonly shared fiscal compact right. confidence works backwards f there is an anchor in the long term it is easier to maintain trust in the short term. after all investors have themselves often taken decisions with a long-term horizon. especially with regard to government bonds. >> holman: in another development, french president nicolas sarkozy and german chancellor angela merkel announced they'll meet monday in paris. sarkozy said they will call for fundamental changes in the treaty governing the euro system. islamist parties in egypt now appear certain to be the big winners in that country's landmark parliamentary elections. newspapers in cairo today predicted a major victory for the muslim brotherhood, the country's oldest islamist gr

but what mario draghi wants to see sequencing, that the governments do their bit before the ecb comesas potentially the lender of lart resort. we had terrific car sales, really good november figures. >> let's hope the jobs numbers turn out the way you say, steve. we'll carry those live on "morning joe." still ahead on "way too early" if you're watching the show at 2:40 a.m. in southern california, there may be a reason other than your affinity for late-night news. the 100-mile-per-hour santa ana winds that are whipping past your home. we'll explain what's going on. >>> plus, thursday night nfl as seattle's marshawn lynch provides a fitting metaphor for the eagles season on a single incredible touchdown run. you've got to see this effort. highlights and more when the campaign trail on "way too early" comes back. >>> enron has been in tailspin ever since revelations that its former chief financial officer ran partnerships allowing the company to keep half a million dollars in debt off its books. last month the company restated its earnings since 1997, eliminating more than $580 million

refute what he says have put in place a network across europe who does not include you've got mario draghi let's have a look at his photo here online he is the former he's the new head of the european central bank a former vice president of goldman sachs europe you've also got the current prime minister elected prime minister of italy that's mario monti he was a former advisor to goldman sachs from i think two thousand and five open to the point when he was made prime minister you've also got the prime minister of greece by the name of luke us but then most of them and he was the former head of the european side of the greek central bank at the time when greece came into the eurozone and what they're saying here is the figure is the greeks present we've been hearing this for a long time know that the figures were not honest and in fact it seems that goldman sachs hoped greece to present a better face to the world right and remember the baby saying somebody made a similar comment many years after i've made that observation and this was the story of the day i got over a million view is. beca

prime minister of italy the new prime minister of greece the head of the european central bank mario draghi so present and past leaders all making financial decisions in the euro zone all having come from goldman sachs now you have lawmakers today talking about this we heard in a senate hearing on the bankruptcy of m.f. global listen to this. the collapse in bankruptcy of american. history or a collapse of the current unfortunately that actually wasn't what i was hoping for you to hear but what he basically said was that the head of the regulatory commission is a goldman sachs alum as you will recall john corazon is he was not just the former governor of new jersey but also the former chairman and c.e.o. of goldman sachs for nine hundred ninety four to one thousand nine hundred ninety nine out a help explain in a squid metaphor how the tentacles are wrapped around humanity so to speak listen to what nomi prins a former goldman sachs managing director was telling us earlier this week about how the firm operates it turns to be a voice that returns to be in relationships within the firm when t

in and backstop the whole thing but in his press conference on thursday it used to be chief mario draghi basically said no we never promise anything like that we don't know where anyone got this idea it's not our problem it's not our responsibility to solve the deficit problem in europe and still responsibility of the various governments so he kind of you know put that put the kybosh on that and it's not clear when or if they will ever step up. as for the i.m.f. it's hard to say they don't have on limited firepower the countries did agree to fund the i am give the i.m.f. more money and that might help a little bit but ultimately the i.m.f. can't really fix the structural problems facing europe and what are the what are those problems to how. the biggest problem in europe is that the countries don't have their own bite because they don't have their own currencies they can't print their own currencies to fund their deficits and they can't do value their currencies to become more competitive so what used to happen before the introduction of the euro was that the weaker less robust economies

would step in and backstop the whole thing but mario draghi has made it clear that's not part of the bill or he certainly hasn't promised to do that yet so it's going to be dicey for a while still and certainly when you talk about there are people who have thought that this would be dicey from the beginning i know earlier r.t. interviewed nigel farage the leader of the u.k. independence party he has been against the euro zone from the start but i want to show you his reaction and also his prediction for things to come i think in the next twenty four hours the seventeen politicians not peoples will agree that they are going to push on the they are going to give incredible dictatorial powers to i'm elected bureaucrats based in brussels the markets will remain extremely nervous and remember that even the package that talking about today will take until march to implement and i think in the meantime the eurozone in particular the mediterranean countries are extremely vulnerable invade. all right joe couple questions here on number one the fact that this won't even be implemented tell mar

claims coming in at below its level in nine months so what's the reason it's the easy ways chief mario draghi saying the bank's hands are tied never can't go ahead with monetary financing which is having gloom. moods of investors the secular good europe are specifically european central bank cut its sixteen lending rate by twenty five basis points to one percent it is widely expected more problems a quarter point cut in advance for this folly of doing rate hikes live earlier this year so also a change of mood after druggies speech the footsie down a quarter of a percent the dax one half percent meanwhile bank of england has decided to leave rates and stimulus changed here in russia the markets were trading in positive territory from was pretty much all day long and managed to maintain some of those gains the odd years of my six half percent at the close look at the main movers on the my so this is mainly driven by corporate results ross telecom peers up a point two percent third quarter net profit rose one percent of three hundred thirty million dollars steelmaker severstal end of the day dow

chief mario draghi says the bank's hands are tied and bond buying power is limited and they can't go ahead with monetary financing so really what's happening in europe is shaping markets around the world the second leg of what is actually happening at the close in london and in frankfurt and they're down a central bank has cut its a key lead to grow. by twenty five basis points the e.c.b. i mean to one percent this widely expected move follows a quarter point cut in november for the underlying rate hikes delivered earlier this year the world bank of england has decided to leave rates stimulus measures and. am here's the closing picture perversities trade in a moscow the markets are higher in in the end maintaining a growth of for around half a percent but the arts yours mine site if we take a look at the main movers on m i six these are based on financial results that companies have been presenting for the food the water rose is up point two percent so it's worth a quarter net profit rose one percent to three hundred thirty billion dollars deal makers have a stone is down two point t

chief mario draghi says the bank's hands are tied an account go ahead with monetary financing really what's happening in europe is shaping all the markets around the world the european central bank has cut its key lending rate by twenty five basis points to one percent this widely expected move follows a quarter point cut in november. and for the undoing rate hikes in the bed earlier this year meanwhile bank of england has decided to leave braids and stimulus unchanged this is the closing picture in your career see you speak and down to the closing picture in russia in moscow they managed to maintain the markets managed to maintain gains around half of the sense by the end of the session after two sessions of losses if we take a look at the main movers they use are mason namely based on the financial results a lot of companies have been reporting first quarter profits rose telecom here is up by a notch its word quarter profit rose one percent to four young thirty million dollars steelmakers sevastopol is down the company's net profit reached one and a half billion dollars in the firs

chief mario draghi says the banks hands are tied bond buying power. limited and a car go ahead with monetary financing therefore this pessimism coming from investors and them selling off stocks really what's happening in europe is shaping markets around the world with the european central bank cutting its key lending rate by twenty five basis points to one percent this widely expected move follows a quarter point cut in november fully on doing rate hikes in the earlier this year the world bank of england decided to leave rates and stimulus measures are unchanged and this is the closing picture over in russia unlike the european or u.s. markets we have seen some growth because we saw a lot of selling in the previous two sessions the r.t.s. my six managed to keep half a percent gain by the close of first day session whether we're looking at the market movers this is all based on financial results coming in for the first quarter roselli point two percent its net profit rose one percent to three hundred thirty million dollars in the first quarter steelmak