draghi and his cohorts have done good by the financial markets.sn't benefited. >> absolutely. and i think the rate meets today. spreads tighten in spain and italy. what's going on in the real economy and the question is actually does it come down to the ecb or should it now be about fiscal policy? >> lots of arguments to say that the bandwagon rolls on to frankfurt from here and perhaps we don't get the cut here. but it does come and it comes in frankfurt. we're going to wrap it up for just a moment. but we will be back with our rate special. that's 1:00 cet, 12:00 london time and, k, if you are watching us in north america, we want you to participate in our coverage. you can watch the world channel on your own cable platform and keep in touch with mario draghi's decision coming shortly. guys, back to you. >> you can, indeed. well said, geoff. weed like to know what you think the ecb should do. let us know your thoughts on twitter or e-mail us, as well. there should be another option saying forget rate cuts and do something together so we can get

if it's bad -- not only do we have draghi cut rates, but he said he'll do more. we had the fed come out yesterday, they said they'd do more, so you just can't fight this tide of liquidity and with housing prices going up and auto sales doing well, those, two me, are the pillars of growth in the u.s. and i think you'll continue to see the markets move. >> anthony is here with us again. you've said all along it's a liquidity driven rally. gas is being pressed more. >> hit iting him with everythin they can hit him with. it's like a performance enhancing drug on an athlete. there will be side effects to what they're doing. we're seeing that in food and energy prices. i'm going to take the other side of these guys today in the short-term because after the announcement that the fed made yesterday, stocks didn't move too much, they're up today because of the draghi thing, but i do believe in short time, we could see a correction here becaall this stuff is now being feathered into the market. not to say that by the end of the day, the stocks aren't going to be up, becaus

that's what draghi alluded to. mr. nowotny saying today it's not something that we consider in the immediate future, so the markets start to price out the down that it took yesterday. >> let's replay you that clip because i think it's important to take note of how he tries to play down the market's growing expectation that there would be a move in the deposit rate. let's listen in. >> i think the markets interpret this point. of course, there's always some kind of technical discussion about this. there's no specific plan in that direction. this is something that one really has to analyze very carefully. what the effect, side effect, psychological effect. so this is not something in the immediate future. >> what would be the immediate effects, do you think, within the banking system if that were to happen? >> quite a lot, it would have an effect on the interbank's market. also the psychological effect. this is something that has never been done before, major central banks. so i would say see this as something not happen

draghi, are you the last man standing when it comes to defending austerity? and he was clearly exasperated in his response. he said, essentially, listen, i've always said when a government tries to balance his budget, it lead to a slowdown in the economy, at least in the short and medium term, but the key question is, how do you mitigate that effect. given the choice between cutting, spending, or raising taxes, government should cut spending, but guess what, they didn't. >> most governments really chose the simplest route, which is the one of raising taxes. here we are talking about raising taxes in an area of the world where taxes are already very high. so no wonder this had a contractionary effect. >> contractionary effect is central banker speak for a decline in the economy. draghi went on to say that now that the emergency has passed, maybe they can keep cutting spending and also cut taxes at the same time. maria? >> so, michelle, is this the same discussion, basically, we're having in the united states, spending cuts or tax increases in terms of getting

draghi is saying it is broadly balanced.nch of liquidity under discussion, including helping the asset-backed security market for small, medium sized companies. bottom line, they will continue, maybe enhance the nonstandard measures. no hints just yet. questions starting right now about whether or not additional rate cuts could be coming. i think we're going to break. bny mellon combines investment management & investment servicing, giving us unique insights which help us attract the industry's brightest minds who create powerful strategies for a country's investments which are used to build new schools to build more bright minds. invested in the world. bny mellon. >>> welcome back to "squawk box." we have to get to kate kelly who has news. >> embattled steve cohen announcing he's instituting employee clawbacks starting the 1st of next year for anybody on his team who is connected to any sort of problems that result in sanctions. and they're putting on new limitations with the contact their traders can have with public compa

draghi said a lot of good things. he is talking about small business loans, boosting that kind of business formation. it's nothing but net opposed to the next nothing but net. i feel this is a breath of fresh air and say more importantly, there were rumors at the end of the day yesterday he would do nothing. i think that was a big part. >> really? you think that contribute to what was a very poor day yesterday for those who are positive on the markets. >> yes. i think the word came through at 2, 2:30. draghi is not on board, germans don't want this and merkel up for election and nothing will happen until november and that's been debunked and why this market looks very strong. >> euro, before the decision was at 13150. people will be watching the currency closely to see whether the market judges his actions as aggressive or not. you call it a breath of fresh air? >> yes, i do. sometimes you have to say, value judgment good. this is something we needed. something bulsz needed. they got it. euro, i believe, this is a the

>> you mentioned mario draghi who you were fairly impressed with.marginalized to some extend the bank. we have a report out they were telling the constitutional court they were against the omt program, which has done so much to bring yields down. where do you think the relationship between the bund y es bank and the ecb is going and does that have the potential to blow things up a bit? >> it's amazing how successful draghi has been working around the bunds bank. he's gotten the rest of the council on board with the omt and other easing measures. so, you know, some of these central banks, the finnish central bank, the dutch who were opponents of earlier phases of bond buys in europe, they've now come around, so it's now just the bundes bank that's isolated, it's isolated within germany as well. you have support for merkel, so as long as draghi's successful at this kind of subtle diplomatic game, keeping the rest of the governing council on board, keeping some allies in the german political system, i think he can go ahead and bundes bank can dissent a

special banker or gold it or tungsten rather this morning the head of the european central bank mario draghi said there are things historic rate cut to happen first. it was just the beginning the euro fell sharply and speaking of market plunges today is the three year anniversary of the flash crash the day of infamy when high frequency trading algorithms gummed up the works at the new york stock exchange and a single day the dow crashed into the red by one thousand points we'll talk about the reading of social security later with royale. also jamie diamond displacing head wins a shareholder advisory firm has suggested that he be stripped from his role as the chairman of the j.p. morgan board the bank is facing a slew of regulatory investigation everything from failing to detect bernie made off suspicious trading to bilking states for millions in extra energy fees the bankers residents walk expert to blight the masters is also under fire masters who is most famous for inventing credit default swaps is accused of lying under oath to regulators about this energy scheme one of j.p. morgan's most

it's been a day of contrasts here at prime interest mario draghi over at the e.c.b. you said you're not like give us counterpart when it comes to dropping money from helicopters more bank capital equals a new ice age that was the absurd picture matt painted out there reading a more absurd as in view war and then the two marx made their mark debating dodd framed in an interview about we were to market at par and too big to fail or is you big to nail hopefully we nailed that one and finally we put the head vampire squid again the newly christened lion and judge them on their street wall street and otherwise thanks for watching and make sure you come back tomorrow and be sure to follow us on facebook at facebook dot com slash prime interest from everyone here at prime and i'm perry and boring have a great night. wealthy british designer. is going to. markets why not scandals find out what's really happening to the global economy with max cons or for a no holds barred look at the global financial headlines tune into kinds a report on r t. they all see themselves as dying

trying to fight that with new actions like the easing of collateral, that have been discussed by draghi and other members of the ecb. >> alberto, you're just getting us started here at the top of the show. loads more to come. get your tweets through, your questions through, as well. we're happy to talk about your issues, as well, here in the studio. >>> we had a pretty rocky session yesterday, by and large, due to the overnight session. before that out of asia, let's check in on the markets in asia here this morning. chloe cho is in singapore. chloe. >> hi, louisa. certainly we've seen more volatile swings than what we saw today, but quite a bit of red arrows, despite the fact that we had a positive handover on wall street. whether on wall street, bad data translates into equity performance, that remains to be seen. we had a couple of interesting data points coming out of japan today. the market came off its highs and ended up about 1.4%. industrial picks, activity seems to be picking up, but certainly mr. abe and the rest of the team in japan seem to be miles away in beating that defla

draghi said he believed the move into encourage rates to drop more.ive profits could hurt rather than boost profitability? carolin has been talking to none other than draghi's right hand man at the ecb. carolin, what did you say? >> well, the point i made during the interview was that theoretically, negative deposit rates could hurt banks' profitability because they're going to be charged for holding excess deposits with the ecb. here is mr. constancio's musings over the pros and cons of this negative deposit rate. >> there are many effects of such measure which we are far away from in deciding. but, of course, as our president has said, we have been examining. it's very difficult to d disentangle all of the effects. you mentioned one, but another effect is if the banks react to such a measure by becoming more active in using the liquidity they have to do something on the fx side, then these could increase their profitability, if indeed they embark in credit and lending. that would increase profitability as a result of the increase in volume. so these

you've got draghi making more comments today. you've made the case on the show it's a liquidity driven rally. euro plunked today after draghi said the ecb may consider more action. >> i think the ecb is definitely easing, which is good news for the markets. i think the jobs data was surprisingly strong on friday. so this is an interesting thing. this is the catch-22, what we're in right now. the fed is watching the jobs numbers very carefully. 7.5, 7.4, and all of a sudden you will start hearing jawboning from the fed to stop the quantitative easing or slow it down. you're in a catch-22 in the markets. i'm still very focused on it being a liquidity driven bull market. but there are pauses. i want to go back to what simon said. simon says. you've got to be very careful in trying to trade the market on its weakness or shortfalls. out of the market for the ten best days, you return back to what government bonds look like. you've got to be very, very careful as a market. >> warren buffett today, stocks are reasonably priced. in his w

>> first of all draghi is very intelligent. he said i will save the euro. but now in january he sounded very optimistic and now we are four months later we are cutting rates. the numbers in europe are horrific. i think the problem right now in europe is france and we've seen the periphery not affecting the core. so i think that draghy is concerned if it goes down. the put doesn't need to exist anymore. he is all about the speed of the decline in the euro. i think the euro will steadily decline back towards 124 over the next six months. it will be very, very orderly and ultimately the dollar wins in this environment. >> yeah, the dollar wins. you know, what does that mean potentially for where the stocks go, right? >> your commodity question. >> again. that takes you back to the energy space. that takes fwuk copperment if only some of the steel and coal names could get a lift, you want to talk about economic sensitivity and cyclical names performing in the second half of the year. that would be a tremendous source of opportunity or as you and john like to sa

pledged last year to save the been a rebound in institutional investment -- since ecb chief mario draghi pledged last year to save the year. a small investors were slow on the uptake missing out on those gains. one investment company has announced selling off some stock and taking the profits. >> now time for a closer look at this week's trading, and what a week it has been -- a string of record highs on the trading floor. we have more from frankfurt. >> the trading week at five days, and the dax marked 5 records this week, so the rally continues with new record highs, although investors fear that the stock market and the economy could go different paces, so they are, of course, very grateful to hear that some t businesses in the euro ea seemed to bottomike the car businessnumbers of car s went in and they gained for the first time since september 2011. of course, car shares benefit most from that. >> let's get a closer look at those market numbers for you now. the dax closing at yet another fresh record high. the euro toxx -- stoxx 50 was also higher. trading is still under way across t

support of economic policies in europe, something which is taken very seriously by ecb chief mario draghi, as he showed in the press conference, when he revealed the real surprise of the day, that the ecb is prepared for - deposit rates, which means that if banks, instead of giving money to companies in europe are parking the money, then they will have to pay money for it. >> what does this mean for europeans and european businesses? >> the ecb chief at the moment has such a large influence that even the threat -- only the threat of negative deposit rates might move money from one bank to another, but no bank wants companies with bad credit ratings in the portfolio, and the more reliable companies might get a little bit careless as money gets too cheap for them. at the same time, the expropriation of sailors is going to continue as interest rates were already so low that they work by inflation, a problem which will worry some now. there are looking for alternative investment opportunities as well, which in most cases, means a real estate. for those who already real- estate, the value is l

just comments again by mario draghi.w and he's the guy that moves markets at this point. >> that's a chart that really does tell the story. in terms of the some of the movers you've got merck which i believe is the worst dow stock at this stage. as for the s&p, cliff's natural resources, you know, is a coal mining stock, right? obviously a sector that's been through some -- it's actually today doing pretty well. in fact, it's the best s&p mover today. as for the worst s&p mover, it is tyson foods. so, you know, that is some of the breakdown that we're seeing today in the markets. back with us also on the floor, i believe you've got peter costa, right? cnbc market analyst? >> we have peter costa standing right here. we haven't had a big selloff after the big rally on friday. >> you would expect it early on. i think we sort of saw a little bit of a sell into this this morning. then it just -- then the market just got flat and it stayed there all day. you know, these kind of days, you should wake up, look what's happened an

year to save the euro, there has been a rebound in institutional investment -- since ecb chief mario draghi pledged last year to save the year. a small investors were slow on the uptake missing out on those gains. one investment company has announced selling off some stock and taking the profits. >> now time for a closer look at this week's trading, and what a week it has been -- a string of record highs on the trading floor. we have more from frankfurt. >> the trading week at five days, and the dax marked 5 records this week, so the rally continues with new record highs, although investors fear that the stock market and the economy could go different paces, so they are, of course, very grateful to hear that some of the businesses in the euro area seemed to bottom out, like the car business. numbers of car registrations went up in april, and they gained for the first time since september 2011. of course, car shares benefit most from that. >> let's get a closer look at those market numbers for you now. the dax closing at yet another fresh record high. the euro toxx -- stoxx 50 was also highe

ecb policymaker saying it overinterpreted draghi's numbers on deposit rates. >> we are less than 30 minutes away from april's jobs number. we have assembled our panel of experts for their predictions. mark zandi, chief economist at moody's. he worked so hard on getting this number right you didn't know the derby was tomorrow. >> sorry. >> and we'll pick up the pace with ben pace, chief u.s. investment officer deutsch bank private wealth management. and i don't know what to do with the aei. this next man, goulsby, economics professor at the university chicago school of business. should i ask you about the derby, austin? >> i appreciate that. i thought, you know, you and the gold bugs. i thought you would go for the golden cents. >> it is pitino, right? that's an idea, though. louisville, is it his year? >> i think it's his year. >> do you really? that would be huge. austin, we're back where we were. do you feel deja vu all over again? >> i wish i didn't. but, yes, here we are again. going into the summer. stuff is not going that great. growth rate is relatively

. >>> ecb president mario draghi was in london last night to attend a dinner hosted by the lord mayor in the city of london. in his speech, he said economic conditions remain challenging. >> what i can say, i can clearly say is that europe needs a more european uk as much as uk needs a more british europe. >> draghi didn't give a lot away last night as to his next policy move. instead, he pressed eurozone governments to shape up their economies. >> today, these recommendations are commonly regarded as having set out the principals by which both central banks should conduct lender of last resort operations. >> and you can find out what else the ecb chief mario draghi had to say about the place in the euro. the debate heats occupy wales at cnbc.com. >>> what else is on today aes show? we'll be in madrid over an investigation into the public offering and subsequent bailing out of bank here thp this is a day after bankia fell 3%. >>> soccer fans converge on europe. we'll be joined in the studio by the match sponsor adidas. >>> there have been concerned raised about the world cup and the o

however, draghi has been on the tack that he is going to do anything it takes for the market. if he pulls anywhere back from that statement, this will cause the market to sell like we saw yesterday. yesterday we saw a very controlled sell-off. if he does not deliver and does not keep his word that he will do anything that it takes, it will cause our markets to go into a little bit more selling pressure. - we are post- the u.s. fed, so what is the take-away for traders? - you know, i think the traders here, i think the market is priced for perfection. i think what you want to look at is that i don't know how much higher we can go. i'm not predicting a top. but what you have to look at is that the odds of the market going higher, the risk is to the downside here, and i think that is the way that you have to look to trade it. either you want to be neutral, observing the market, or looking for an opportunity to get short this market. - the adp jobs number came in shy. what will that mean for the jobs number ahead? - you know, i think the jobs number ahead, it is always a quirky nu

pricing in the selling bonds ability this morning president of the european central bank to mario draghi cut the main refinancing rate so historically low a half a percent he has an open mind on the issue of brains charging depositors for the privilege of holding their money what you don't go around with helicopter money that was actually the feds i believe you made no comments on cyber it's. been surprise surprise according to american banker at the pay a bank its c.e.o. is rose eleven percent in two thousand and twelve but it's not just top bankers who are cashing in pay dog trader and male dance uyghur and his he's been known to have a quid pro quo lation ships with brokerage accepting off but compensations in the form of lavish drug partings abdomens gloves his dirty deals believe it or not have gotten filthy u.s. attorneys ours expecting that dan zeiger and his broker buddies tried to rig up. alive or well talk more about the fine line between bankers and gangsters in today's daily dual let's get to what's in your interest.

his start he began his career at mit in the late seventy's where he first met ben bernanke mario draghi and stanley fischer who he would eventually succeed as chief economist at the world bank it was there that he drew criticism for his views on toxic wait now i'm not talking about the actual are not talking about financial toxic assets which he later supported and actual toxic waste he approved a memo that said quote i think the economic logic behind dumping a load of toxic waste and the lowest wage country is impeccable the underpopulated countries in africa are vastly under polluted. later in the late one nine hundred seventy s. while serving as deputy treasury secretary he worked closely with robert rubin and alan greenspan to overturn the glass steagall act and he also worked to ban proposed regulation of all privately traded derivatives he testified to congress that the parties to these kinds of contracts are largely sophisticated and financial institutions that would appear to be eminently capable of protecting themselves from fraud and counterparty and solvency summers would go

this morning president of the european central bank mario draghi cut the main refinancing rate to a historic.

central banker or gold or tungsten rather this morning the head of the european central bank mario draghi said there are things historic rate cut to happen percent was just the beginning the euro fell sharply and speaking of market plunges today of the three year anniversary of the flash crash the day of infamy when a high frequency trading algorithm gummed up the works at the new york stock exchange and a single day the dow crashed into the red by one thousand points we'll talk about the reading of social security later with overt roy. also jamie diamond is facing headwinds a shareholder advisory firm has suggested that he be stripped from his role as the chairman of the j.p. morgan board the bank is facing a slew of regulatory investigations everything from failing to detect bernie made off suspicious trading to bilking states for millions in extra energy fees the bankers resident swap.

this morning president of the european central bank mario draghi cut the main refinancing rate to a historically low a half a percent and he has an open mind on the issue of banks charging depositors for the privilege of holding their money and what you don't go around with helicopter money that was actually the fact is i believe he made no comments on. then surprise surprise according to american banker at the pay a bank its c.e.o. is rose eleven percent in two thousand and twelve.

the cross winds were blowing strong today on prime interest mario draghi heated up well technically down the euro when he said he was so not finished lowering interest rates by our count he has to opportunity to join burning he at the zero area we found the ballooning ious and social scene. might just be filled with hot air jamie dimon was buzzed by a deford carrying news that shareholders would be wise to blow him off the morgan board and why have you got some slain in to do the regulators culture bluff or what some call lies under oath and warren buffett took a head of big coins but had nothing but cat calls for her beloved chairman bernanke he was a likeliness was featured in our bankers ultimately he couldn't hold a candle to diamondback who stole the fractionally reserved prize with a photo finish and finally we talked about insider trading laws for congress which is the kind of mixed up as a metaphor and thanks for watching and make sure you come back tomorrow and be sure to follow us on facebook at facebook dot com slash prime interest from everyone here at prime interest i'm pari

is open minded about negative rates european central bank president mario draghi has announced that the e.c.b. is technically ready for negative interest rates as draggy said that the e.c.b. had an open mind the euro plummeted against the dollar and you can see that in the chart here now now now now oh mrs well. they've got a real bad thing go in. yeah now to china central planning doesn't work. ben bernanke is the mal of central banking he's central planning causing natural disasters there's of course the cost of doing what companies like exxon do on never reflected on the true income statement or balance sheet of the company's other free to commit economic jihad and environmental jihad. and of course when. you know the part of the great leap forward with the collectivization of the agricultural land said you weren't allowed to own private property so private farming was prohibited in those engaged in it were labelled as counter-revolutionaries and persecuted in the same day and age today when you try to protect yourself by buying gold for example to protect yourself from the ravages o

this morning president of the european central bank mario draghi cut the main refinancing rate so historically low a half a percent and he has an open mind on the issue of brains charging depositors for the privilege of holding their money and what you don't go around with helicopter money that was actually the feds i believe made no comments on cyber it's. been surprise surprise according to american banker at the pay a bank its c.e.o. is rose eleven percent in two thousand and twelve but it's not just top bankers who are cashing in bank dog trader and male dance iger and his i mean he's been known to have a quid pro quo lation ships with brokers accepting off compensations in the form of lavish do.