and ecb president mario draghi draghi's warning.e claiming to be president of the country. >> top military brass are still throwing support behind maduro. the defense minister and others put their support that they would not be backing down, that they would continue to support him, that they are "still willing to die for their country and their fatherland backing maduro." grip brokenseen a on them yet. davi

tom: we have mario draghi in this hour. the conversation coming up, including goldman sachs, david solomon and james gorman. this is the heart of american wall street. jonathan: night and day, the experience of wall street in the u.s. and what you would call global wall street. the european situation increasingly difficult. ceo's of the world express something different. tom: standard chartered. key emerging-market bank. i talked to bill winters today. the set in davos from gorman and solomon, winters, trying to move up and repair. jonathan: coming up, catching up with james gorman of morgan stanley. erik schatzker later. also, goldman sachs'david solomon on bloomberg radio and bloomberg tv. as we count you down to an important position from president draghi, unchanged, we expect in frankfurt. the conference, fascinating. concern about the continent increasing. bridgewater on europe. >> they are starting from a worse level in terms of the economy, lower inflation, close to deflation and negative interest rates. that will cl

nevertheless, this was a master class from mario draghi. the euro was falling, so was implied volatility. this is fascinating. mario draghi barely causing a ripple in the markets at the moment, but moving asset prices. in terms of expectations on where we go from here, the ecb may be is communicating reasonably well. that is where implied volatility sits right now. what we've also seen is a significant move lower in the yield on the german ten-year. two reasons for that. one of which is we saw manufacturing pmi out of germany weaker, and then we have mario draghi. that is what the market reactions look like to the ecb today. this is "bloomberg surveillance ." we are live from london, live from new york, and of course avos.from d ♪ global economy i think is in ok shape. our economists are talking about 3.5% global growth in the u.s.. 2.4% growthng about in the u.s. if you look at just the economy, i think we are doing just fine. the growth trajectory has maybe slowed a little bit, but the underlying economy is chugging along pretty well. jon

now that myeuro draghi speaks, what do you make of the action after the comments from mario draghi?s more rough the european slowdown in what is in the price already. it is difficult to strip out the two. we have got the data in europe. it is being weak and now below trend. we loaded our gdp forecast going forward. the gdp will not raise rates this year. it is moving as this continues. a lot of it is contingent on what is going in -- going on with china. seeing a big slowdown with china and the it has an impact on trade and we see that in the numbers. the dollar underperformance story but we need to see some action on the u.s. china trade talks and is go stimulus from china before we can it really optimistic. >> all right. thank you for joining us. guy: we are joined by vince, the leader of the liberal democrats. good afternoon. theresa may is widely expected to lose this evening. you have any idea from talking to people inside a house, the scale of the losses we could potentially be looking at? the champagne popping come we get away with under 100, which is staggering. we are not u

draghi is closing the window.b president warns the economic risks have moved to the downside. the executive board member tells us exclusively that it is too early to tell if rates will rise in 2019. we knew that growth would have to slow down because it started from a high point back in 2017 but the slowdown has surprised us. good morning, welcome to "bloomberg: markets." this is the european open. anna. anna: met. matt. a bit of m and a in the forecast. payments and transfers, maybe that has added some impetus to that, i'm thinking of mastercard and the small deal they have done. also, suppliers doing quite nicely as well as auto companies themselves. all moving to the upside. that is a sector that seems to be benefiting this morning. and we do have some of the telecom news in there as well. this is ericsson we see up by 2.6%. they put out numbers that are better than expected, customers leading equipment for 5g let's have a good look at the downside and see what is moving things little bit weaker on the european

what will mario draghi say? data in germany and france.ean union, generally speaking. u.s. jobless claims. david: earnings also on deck today. the operator of exchange in singapore is out. hyundai is out in an hour. jules pointed out the sk hynix story. starbucks should be out after the close of the u.s. more of a friday morning story here in the asia-pacific. jules: plenty more big-name guests ahead. we will be live at davos speaking with morgan stanley ceo james gorman, david sullivan, and spain's economy minister. plus, an exclusive interview with priscilla chan. the chan-bloomberg initiative cofounder. 9:00 a.m. if you are watching in sydney, 5:00 p.m. if you are in new york. that is it for "bloomberg markets: asia." this is bloomberg. ♪ selina: i'm selina wang in san francisco and this is "bloomberg technology." coming up, tesla shares stumbled -- the carmaker announces it is cutting back on the production of the model x. will profitability once again come under pressure for the company? plus, uber makes a splash at the world economic

what are we going to hear from mario draghi and the ecb? theie: the dollar-yen is dollar focus today, but let's get a quick look at the equity picture. ,ally up 1% on the he averages the s&p 500 erasing all of that right now, barely clinging onto a couple of points a positive movement, but we are seeing earnings with united technologies and ibm up more than 4% right now. comcast up more than 5%. we have the ceo of viacom in this hour, too. to thet's get back banks. brian moynihan remains bullish on the u.s. economy. earlier in davos, and excavation on why he disagrees with some fed critics. >> right now that put them into the neutral range that they talked about four. the markets sorted it out and i say now that ok at this level of accommodation is neutral and therefore more if the economy stronger. they take it, they pull it up a little. guy: brian moynihan talking to jon ferro. i suspect that mario draghi is very much watching what's happening in washington right now. is the federal reserve has its sights set on deutsche bank, they are be

are there concerns now about peripheral europe, if mario draghi cannot get off the bottom, and there is a slowdown, what else can he do? noelle: we kind of agree with iain's view that he will come out dovish in march. the gdp numbers, expectations will have to be revised down. at the most recent meeting, he kind of kicked the can to march. we think they will continue to be dovish, european growth will stabilize, and that will stabilize chinese growth. that will be a good environment for credit. taylor: we talk about slowing chinese growth, you're also looking at a slowdown in the u.s. perhaps. what is the impact on emerging markets? jose: in terms of markets, we see rates stabilized. a slowdown has been priced into the bond market pretty well, especially at the long end. .hat lowers interest rates from our perspective, emerging markets look pretty compelling on a debt and equity side. we see prettyly, stable growth, as you alluded to. this year, good growth in em. the question is the currency play. at some point when the dollar peaks -- we saw it in december 20 16 -- and then the nex

it dropped after downside risks were flagged by ecb president mario draghi. cultures were discussed. rates are going to stay on changed -- unchanged. brent higher by 1.1%. risks in venezuela for the oil market, up for the third day. let's check on the markets in asia. juliette saly in singapore has more. i'm finding a conundrum seeing tech stocks rally in asia, particularly after what we got from intel and what we saw in u.s. after hours trading. what is behind the rally? juliette: we have taken the q from texas instruments. global wafers as well supporting the overall tech sector. inis a bit of a conundrum terms of what we heard from wilbur ross saying the u.s. and china are miles away from a trade deal. all the major markets closing higher. the nikkei closing higher by 1%. asian stocks on track for a third weekly gain. that is the longest winning streak we have seen since july last year. chinese stocks up by over 1% in late trade hong kong up by 1.4%. let's have a look at stocks and tsmc. tsmc has held the taiex. global wafers also in taipei very strong. te

draghi says higher wages help the consumer. he is quite positive.id was muted and he has downgraded the growth forecast, but he is just facing reality and reflecting that. haven't made a decision other than saying things are a little slower. he does point to various issues around the world and said the odds are high there is a positive outcome to many of them. the reason they have to do a because this moving on has impacted sentiment. motivatedaghi will be to do an exit because he is retiring at the end of the year. i think a rate hike in the eurozone is likely. that means higher volatility in the market. investors have been trying to figure out the health of the global economy not to mnuchin where trade talks are going. when you have this environment of higher volatility, how do you adjust or rebalance the portfolio to be able to reflect this new risk environment? investors have some sort of risk profile. the problem is can -- is any just have it on paper and don't really know what it means. a 60% equity allocation makes a difference on the environ

given everything mario draghi i am finding it hard to go long euro-dollar.n: it is true, the data is somewhat contradicted by what the ecb expects but we think even in the worst case, when the ecb is forced to go back to its toolbox and unveil a plan b, what to do next if the economy does not do as well as expected, we think the ecb will resort to credit easing tools. in other words, a will of hit the rock bottom in its monetary easing cycle so anything they can do from here would be more credit easing measures. historically, such measures are not negative for the euro. they were positive for growth, but not negative for the currencies. as part of their effort to boost the banks' profitability, we cannot exclude rate hikes, which penalize banks holding excess cash. if the ecb wants to restore parfitt ability, they could -- profitability, they could bring them closer to zero levels and the currency terms, that can play out as a positive development for the currency. i should mention that a big part of the euro selloff since 2015 was the introduction of negati

mario draghi is talking about trade, global uncertainty, et cetera for the euro areas. we will discuss all of that next with jason. this is bloomberg. ♪ vonnie: this is bloomberg markets. let's pick up and talk about what's happening in the european parliament. mario draghi, the president of the ecb, doesn't look like any iser people, he is there, he addressing parliament. he said if things go very wrong, the ecb could use the policy tools again it has been using in the last downturn. the euro is trading a little bit higher but is down on the year. abigail has more. riskrtainly a bearish tone. all down more than 1%. semiconductor index underperforming. appetite not here with the market. that has been the worst day since beginning of january. overall january has been bullish. the big under performer is nvidia. this is a really pretty stunning decline. they of course preannounced their fourth quarter saying the economic weakness out there is hitting the data center, this is very similar to what apple did, preannounced ahead of recording , we look at china the other laggar

are there concerns now about peripheral europe, you know, if mario draghi cannot get off the bottom, there is a slowdown? what else can he do? noelle: we think that, kind of agree with iain's view that he will come out dovish in march. he will continue to be dovish. the gdp numbers, expectations are going to have to be revised down. with the most recent meeting, he kind of just kicked the can to march. we think they are going to continue to be dovish, european growth is going to stabilize, and that will stabilize chinese growth. that is going to be a good environment for credit. taylor: we talked about slowing chinese growth, and you're also looking at a slowdown in the u.s. perhaps. what is the impact on emerging markets? jose: i think if you look at emerging markets, in terms of markets, we have seen rates have stabilized. this slowdown has been priced into the bond market pretty well, especially at the long end. we have seen a very flat curve. so that, you know, that lowers interest rates. from our perspective, emerging markets look pretty compelling on the debt and equity side. s

plus, we will get comments from the fed's jay powell and ecb's mario draghi.urse, don't forget there will be u.s.-china trade talks, brexit vote in the you take, the , and the u.s. jobs report. still with me, noelle corum, jose rasco, and iain stealey from jpmorgan asset management. we mentioned the fed coming up next week in the u.s. jobs report and the shutdown. does any of that change your scenario for jay powell? jose: no. we think jay powell is on hold until september. one thing the market should be vigilant of is the seasonal factors in the first quarter are just askew in this business cycle. keep in mind minimum wages went up in a lot of states this year, just like they did last year. do not be surprised by a bit of a jump in wages on the employment report free of it may not be shocked by that. i think the market would not take it well, but i don't think it holds. taylor: noelle, jobs report, the fed, does anything change? noelle: i think the fed goes in june, and that is largely on the growth and inflation picture kind of stabilizing from here. in term

guy: well mario draghi talk about this next week -- will mario draghi talk about this next week? >> we have seen four of the government councilmembers talk about rate hikes this year, which i think is madness. there were mistakes made in 2011. mario draghi has been the only one mentioning the economic slowdown. both prediction. the numbers out of germany and italy are looking down. creating problems with transportation. draghi will start looking and thinking about putting forward different aspects, but the ecb is not ready for it yet. they may take it up in the march meeting. guy: who would've thought that glacier melts would have been a factor? [laughter] guy: let's talk about brexit. there was research published earlier on talking about the fact that investors are looking at the long end of the gilt market, and then we have a flattening out because they are trying to seek protection from a falling pound and a no deal brexit. you are not convinced by this? >> i think there are two types of the guild curve. one of a more international market, and one that is a domestic pension fu

draghi has to analogy was wrong in q3.d though weakness in -- he said the weakness in q3 would be tempered. francine: he was the anti-austerity guy. jonathan: he wants governments to do structural reforms, etc.. we have been told again and again that these central banks are data dependent. what is happening in europe right now? how does manchester united lose? jonathan: really? francine: at least let's talk ice hockey. this is bloomberg surveillance. james gorman up next. comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's

stein: draghi's term ends in the fall of this year. jonathan: and these mature in 2025. mr.tein: exactly. i think what is actually helping italy is france. and actually a country we like short is french sovereign debt. but what has helped with all of the protests in france, macron is getting pressure to expand the budget deficit and spend more money and not do some of his reforms. that makes it a little bit easier for italy. brexit also probably helps italy. how many battles does the e.u. want to fight at once? jonathan: to me, it doesn't spell a great macro story for europe. i actually caught up with your colleague michael collins, and he said to me, if italy is going to perform in terms of duration of the long end, then bunds are going nowhere. that is your basic assumption. if you think italy is going to do well, it's because bunds will just be pinned to the ground, because the ecb is not going anywhere. what do you think of that argument? mr. tipp: well, the bunds, you can barely find them. they have a surplus, they have a low debt level, they trade like a very tight com

mario draghi addresses the european parliament today. lifts sanctions on three companies, including aluminum producers. the prices of the metal dip in london. ♪ manus: welcome to "daybreak: europe." we have rallied 13% on the s&p 500 since santa claus came on the 20th of december. what will the fed say this week? is it more important than the trade talks in washington? nymex crude is later, with three days of -- is likeghter, with three days of gains. the venezuelan standoff seems to be for the moment influx. in brent, the lungs are rising the most since august. let's have a look at the rest of the markets. we have a big bellwethers reporting this week as well. has had its biggest one-day drop since 2016. china's demand, this could be the canary in the demand coal mine. china's gas demand could drop in january. that would be the first drop we have seen in a number of years. it has gotten warmer, but we have some big shifts in some of these commodities, a whole variety of stories. nejra: good morning. it does feel like a pivotal week for

if you want to watch mario draghi, he is still in the parliament, so find him on live .nie: less chicken on first word news. thetney: the pentagon warns military cybersecurity is unable to stay ahead of potential attackers. bloomberg has obtained the defense department's assessment of cyber threats. the report says the pentagon's testing is handicapped by a lack of expertise and tools to assess weapons systems. recruiting qualified people is a big issue. and bloomberg has learned of the wto is looking into president trump's tariffs on $250 billion of chinese goods. sources tell bloomberg that the wto is investigating whether the tariffs violate the rle. that all organization -- rule that all organization members give each other the same treatment. a new round of u.s. china trade talks are scheduled to begin this week. president trump says that former starbucks ceo howard schultz "doesn't have the guts to run for president." howard schultz said he was thinking of running in 2020 as a centrist independent candidate. some democrats say that could lead to the president's ree

euro hitting a 2019 low during mario draghi's press conference.ows another sign of more we weakness germany manufacturing, pmi hit the lowest level in four years in response, seeing a flight to safety with german ten year down more than 20% over the past one week more economic head winds out of france as well business activity falling unexpectedly in december, dropping at the fastest pace in more than four years, due in part to anti-government protests worth knowing the french equity market is trying to rebound from two year lows, higher by seven-tenths of 1% technology, boosted by strong earnings from apple supplier sd micro electronics. morgan, back to you. >> thank you. >>> let's get to sue herera for a news update. hey, sue. >> hello, morgan hello, everyone. here is what's happening at this hour nancy pelosi reacting after president trump capitulated to her request to postpone delivering the state of the union address in the house chambers until the partial government shutdown is over. >> glad we have that off the table because it was about th

it's something that draghi obviously referred to quite extensively yesterday. i'm happy to say the president of the ifo institute is with us. sir, you probably just heard me giving an overview of some of the numbers that came out. it seems to me that the most alarming element that came out of the ifo numbers this morning are those of the expectations. can you tell us more about what's going on there? >> yes, that's correct most companies say the current situation has deteriorated a little, but the method change is really in expectations or companies are increasingly worried. they are worried about brexit, of course, about the apparent inability of the political leadership to make sure that there will be no heard break the 29th of march is economy in italy, spain, france, and all of that leads to increasing pessimism. zoo said u.s. shutdown, the protest, you said italy. all l factors. what's going on within germany domestically as well >> so the domestic economy is relatively strong. we will have a record level of employment wages are growing at increasing rates

draghi is gone. i do not know who replaces him.hat monetary policy will look like in the next 12 months. difficult to imagine what happens after draghi is gone. simon: we do not know who will be the next president. we thought we knew last time. there are elections in a couple of months. the word from brussels is they will want to get through those before they start to think about who they could be. various others from germany, from finland, from the netherlands. france might one another president in their current it is about politics -- from -- france might want another president in there. jonathan: bloomberg simon kennedy in davos, switzerland. tour ofcould do a everyone who is to be the next president of the ecb. jonathan: is simon kennedy going to sign this checks? earlier on we caught up with the citigroup ceo on the future of the financial sector. take a listen. >> the models need to be tested. we have not been through a cycle. people have decided they're going to do new and different and interesting ways of underwriting credi

if mario draghi can't get off the bottom, the slowdown. expectations will have to be revised. with this meeting, we kicked the can to march and things will continue to be digest -- dovish. that will be a good environment for credit. and you are looking at slowdown in the u.s., perhaps. what is the slowdown in emerging markets? stabilize.seen rates this has been priced into the bond market pretty well. that lowers interest rates. from our perspective, emerging debt andre on the equity side. we still see pretty stable growth, like he just alluded to. the question for us is the currency played. at some point, when the dollar peaks -- who sought in the dollar peaking in december. >> just hitting that point home with stable growth. is a very good environment for credit. especially assets that are higher-yielding. and valuations, especially high-yield leverage loans have come in a lot. we still think there are very attractive yields here. taylor: that is our next segment. you will throw everybody off. [laughter] >> we have seen 5 billion flow into em this year. taylor: jump in here

will draghi acknowledge those risks.g question, now since the last ecb meeting in december, european stocks have held up pretty well, up about 1.5% the euro has basically remained flat morgan, back to you. >>> thank you. >>> the dow turning around giving up most of its gains after being up as much as 296 points earlier in the morning. it's now only up about 48 points if it weren't for ibm, it'd actually be negative ibm is contributing 62 positive points right now. >>> how china trade headlines are impacting this morning's market move is coming next. >>> and later microsoft chairman john thompsonis with us. we've got bia g show of "squawk alley. it's going to continue right after this break so all... evening long. ooh, so close. yes, but also all... night through its entirety. come on, all... the time from sunset to sunrise. right. but you can trade... from, from... from darkness to light. ♪ you're not gonna say it are you? ♪ hawaii is the first state in the u.s. to have a hundred percent renewable energy goal. if we don'

mario draghi sending out these alarm bells about growth on the continent. germanyarly when we see , perhaps 1% growth for 2019, and that would mean the so-called powerhouse of the eu would be struggling. yen flat. thereabouts -- 1.07 or thereabouts. the swissie flirting with parity against the dollar. we will be discussing emerging markets, and this is the man himself, mark mobius. he will join us in a few moments. and youave questions are a bloomberg user, use the instant bloomberg function. let's look at the first word news. i will elaborate. sterling jumping on reports that theresa may will have the support of the dup in the brexit vote next week. the news comes as a big warning about the impending divorce. said in the event of a hard split, the plane maker would have to make some tough choices. ,> if there is a no deal brexit airbus will have to make potentially harmful decisions. because we have huge plants here, we will always be here. they are wrong. >> the trump administration is urging all nonemergency federal employees out of venezuela. theington

up next, draghi's narrow window. may have to act quickly if it wants to hike rates before the european economy slows down too much. not looking good. we'll discuss. this is bloomberg. ♪ anna: welcome back to the european open, 21 minutes into your trading day. a negative session for the stoxx 600. the ftse 100 one of the gainers. as earnings season kicks into high gear, groupthink is spreading among wall street forecasters. predictions are looking more alike between different analysts. rather than offer any solace, unity is posing a threat to market tranquility. here to explain is dani burger. dani: it is really interesting, analysts in near record agreement on what the earnings season is going to look like. here i have estimate dispersion on the s&p 500. the measure has fallen, meeting analysts agree more. last quarter, this was the most they agreed on individual companies since back here in 2000. it barely has moved this quarter. why, for some of the reasons behind that. it might be the macro uncertainty that cause

banking stocks per european financials reacted very negatively to comments from mario draghi today andn part, despite the fact that he seemed able to reassure the markets on ofer points, it was the lack consensus on targeted longer-term refinancing options for banks. you can see the strong reactions there. it may be some analysis suggesting the banks are pricing in more negatively or pessimism despite the fact that mario draghi really did seem to try to walk back his earlier comments on the weakness in the eurozone. shery: at least when it comes to his caution, about the european economy, it seems like european data really reaffirmed his position. we got the pmi following to the lowest levels since 2013. not to mention the manufacturing gauge being bad as well. look at this gtv chart on the bloomberg. you can see the citigroup economic surprise data showing beene's readout has disappointing. that would be your line in white. the u.s. is disappointed, but not as much as europe. let's turn to politics in the u.s. on senate is posed to vote two dueling shutdown builds in an hour. a number

trait or a bad trait, but i think whatever -- ,henever there's a bad trade someone follows up with draghind whatever it takes. mr. stein: his term ends of the end of this year. jonathan: these mature in 2025. is stein: was helping italy france, we like to be short french sovereign debt but what helped is that macron is getting pressure to expand the budget deficit and not to some of his reforms, making it easier for italy and brexit also helps italy. how many battles has -- does the eu want to fight at once? jonathan: i caught up with your colleague michael collins over a few gin and he said to me if italy is going to perform in terms of duration of the long bunds are going nowhere. they are going to repent to the ground because the ecb is not going to go anywhere. what do you think of that argument? , you can barely find them. they have a surplus in a low debt level and they trade like a very tight commodity. i think in europe at any given point in time, people are focusing on the weak link which right now is italy. is thaty are missing these sovereigns have been a seven-year trend of ra

and ecb president mario draghi draghi's warning. we have two people claiming to be president of the country. >> top military brass are still throwing support behind maduro. the defense minister and others put their support that they would not be backing down, that they would continue to support him, that they are "still willing to die for their country and their fatherland backing maduro." grip brokenseen a on them yet. david: the new division between the rank-and-file and the leadership. is behindstand, it maduro. lot of we have seen a that. even this week, there was a small situation in caracas. they were calling soldiers to break ranks. they were sending videos on social media, and this broke all across caracas. so we are seeing it, but we have not seen it on a huge scale yet. david: all right, andrew, thank you so much, andrew rosati reporting in caracas. aul, we heard from mario draghi, and he was right saying that the risk has shifted to the downside. paul: yes, and that was frightening. the euro moves lower on those remarks.

bad trait, but i always feel like when there is bad investment in europe, someone follows up with draghihatever it takes. mr. stein: his term ends in the fall of this year. jonathan: these mature in 2025. mr. stein: was helping italy is france, we like to be short french sovereign debt but what helped with the protest in france, macron is getting pressure to expand the budget deficit and not do some of his reforms. that makes it easier for italy and brexit also helps italy. how many battles does the eu want to fight at once? jonathan: it doesn't spell a great macro story for europe. i caught up with your colleague michael collins, and he said to me, if italy is going to perform in terms of duration of the long ends, then bunds are going nowhere. if you think italy is going to do well, it's because balloons will be pinned to the ground. they are going to repent to the ground because the ecb is not going to go anywhere. what do you think of that argument? mr. tipp: bunds, you can barely find them. they have a surplus in a low debt level and they trade like a very tight commodity. i think i

the euro dropping a little bit after we saw some week data out of europe and ecb president mario draghi talking about weak growth and concerns. .25% despiteining the fact that we saw some weaker economic data out of the u.s. the empire manufacturing survey all again. the japanese yen holding steady. keep an eye out for those machine orders and ppi numbers coming out of japan this morning. >> we're still digesting that ate the took place westminster in the past two and of ours. theresa may not think her brexit deal is dead, despite that landslide loss in parliament with the prospect of a confidence vote later wednesday. in a first vote addressed to the commons, may struck a defiant tone. >> it is clear the house does not want this deal but tonight's vote tells us nothing about what it does support, nothing about how or even if it intends to honor the decision the british people took in a referendum parliament decided to hold. >> let's get straight to london where our reporter joins us live. this report nearly increases the feeling of political paralysis. what's going to happen in the ? x

president mario draghi made the announcement made december the european central bank want to buy bonds on the financial markets start in january. regarding known standard monetary policy measures are net purchases under the us it purchase program will end in december two thousand and eighteen the e.c.b. has been buying government bonds as part of its quantitative easing program which was later expanded to include corporate bonds to make financing cheaper for companies the e.c.b. has spent a staggering two thousand six hundred fifty billion euros on bonds which it will be holding onto for now. it's it be food decide who would those among the moment that is on the scene be has been fulfilling the mandate that it has for the whole eurozone well financed. it is now pulling back from financial relief for southern europe to fulfill its monday it will both northern and southern european countries not. has proceeded with caution allowing the markets time to adapt to more expensive financing for now the main question is whether the e.c.b. will raise the interest rate next year. a major challeng

and china miles from a trade resolution draghi said near term growth was weaker and poor economic numbers in europe and yesterday's earnings results, mixed today overall. with positive comments from southwest airlines, we've had the positive comments. offset by more downbeat from texas instruments even though texas instruments is up nicely today. the market moving sideways the last few days. was it the december lows the bottom in technical analysis firm, lowry, analyzed with the s&p up about 14% from the december 24th low and a turnaround so rapid, occurred only 9 times in the last 80 years. lowry's conclusion is this those waiting for a retest, probabilities are historically against a market retest given these rare circumstances kelly, important thing here, a little bit of glass half full from lowry back to you. >> bob, thank you. bob pisani down at the new york stock exchange day 34 of the government shutdown the senate will vote on two proposals designed to end it but neither likely to pass ylan mui with that >> not enough to get these across the finish line but shows there is a middle

mario draghi might not be the man to raise rates.rated has -- chairman powell has recalibrated his model, talking about a bit of patience, rich miller talking about how the fed is grappling with its balance sheet as well. kennedy, we will catch up with him. looking ahead to mario draghi -- earlier on, we spoke to bill gates. he's the cofounder of microsoft and chairman of the bill and melinda gates foundation. >> our foundation has put over $10 billion into those efforts. billion,it is $100 most of the money has come from foreign aid budgets. we are saying let's look at that track record, let's look at the constant learning that is taking place and maintain that commitment because we can get even further. replenishment for those two funds coming up over the next year. the first one is in october in france. any time someone looks at this, they are enthused. avoid the fact that it is far away, there's other things, we will avoid this getting overlooked. worry thats there a this will get overlooked? innovation through medicine -- what k

what mario draghi has to balances this slowdown in economic data.oes he still get signals we are going to see tightening from the ecb? does that get offset with mention of ltro's? manus: yes. the he tacitly acknowledged slowdown everyone in davos is talking about? a lovely article this morning. investors seek a flattening yield curve. -- officialial update in march. let's get to davos where the debate continues. haslinda amin is standing by. is anda: whether it synchronized slowdown or not, there is slowdown. the australian finance minister, let's get his take on the global economy. how weak is the global economy? how weak is the chinese economy? >> in australia we are very mindful of the global economic headwinds. what happens in the rest of the world matters to us. in australia the economy continues to perform well. we have continuous growth. inare looking at 3% growth real terms moving forward. the unemployment rate has come down. wages growth is starting to pick up. our outlook is broadly optimistic. >> broadly optimistic, but there are risks. t

and mario draghi the departing and incoming directors of the european central bank sent a secret letter to berlusconi the letter was made public by the courier newspaper and drew my.

what are we going to hear from draghi and how big a problem does he have? marcus: morgan stanley, a couple of the banks have come up saying -- come up with the same collusion. draghi did allude they were raised in december. ye did not have to sav that. there should be a discussion the we are looking for march for implementation. they are recognizing they need to get some form of potential stimulus ready to go and at march, when it is the quarterly economic review, that they can then act and have more substantive data. guy: i have heard this from a lot of people. this is going to be cheap bank financing which targets the bits of the economy which are struggling the most end is not as broadbrush as qe? marcus: it is voluntary qe. stimulus, banks that needed and can do something with it rather than a random buying of bonds or dutch estate , which the less qe makes things desk the less qe makes things worse. it is relative. whichnt to help the areas are relatively in a bad state, not the entire economy which does not needed. change inuch of this the ecb is in t

listen i don't doubt that mario draghi's in a pickle here but this is of their own making. don't think they timed it out right. i don't think they -- let's rephrase i think mario draghi and the ecb are waiting for the absolute perfect picture perfect opportunity to normalize rates there's no such thing and not many tools left in the tool box to make a bigger balance sheet or go even more negative than the deposit rate minus 40 basis points and considering how weak their economy has been with that medicine applied i don't think the latter will they go to recession? i think out of the major economies on the globe right now putting china aside because i don't trust their numbers, i think europe could >> although, rick, i'm not sure it was really the opportunity for him to hike rates here but a question of the economy -- >> no, not recently, yes yeah not recently i think there were opportunities. yeah, no you know what? you make a good point. let's go with that let's say after they made their balance sheet large, after they dropped rates the my noinus 40, there was no opportuni

and mario draghi the departing and incoming directors of the european central bank sent a secret letter to berlusconi the letter was made public by the courier newspaper and reminds berlusconi of certain key measures the e.c.b. was expecting from its city. these were structural reforms in favor of complete liberalization of local public services through large scale privatization. this secret letterhead major consequences as the european central bank has no power to enforce specific policy on any member states. it was a judgment the judgment of the. what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. was under attack. one of. the berlusconi government did in fact implements many of the measures proposed in the letter it also tried covertly to reintroduce provisions for the privatization of water which the italian people had voted down in the referendum the course official court intervenes and said no you cannot rein should use. legal provisions to of been repealed as a result of a referral. this prompted european commissioner olli rehn t

dollar, this after mario draghi said the economy in the e.u.ill weak enough to require significant stimulus from the ecb. futures are pointing higher, even ftse futures are up slightly as we slide into the open of continental the u.k. stocks. you can see that futures -- let us see how the cash trade looks like. the ftse barely positive coming out of the gate, the imax in madrid -- the ibex in madrid also trading a quarter percentage point up, so it looks morning.ld gains this we may also see some really light volumes here, that is one of the things we noticed yesterday and today, in terms of the pound trade. traded.st very thin the although, you don't see the kind of volatility you may have expected, not a lot of bouncing. it is holding pretty tight. you might maybe see some light volume in a stocks as well. as far as this, we have really to the upside, 490 stocks rising, and you can see as far as the biggest additions to the stoxx 600, we have the oil stocks of their, total up, shall also up, with gains this morning. , as well as hsbc up some

and mario draghi the departing and incoming directors of the european central bank sent a secret letter to berlusconi the letter was made public by the courier newspaper and reminds berlusconi of certain key measures the e.c.b. was expecting from its city. these were structural reforms in favor of complete liberalization of local public services through large scale privatization. this secret letterhead major consequences as the european central bank has no power to enforce specific policies on any member states. it was a judgment the judgment of the. absolutely dramatic circumstances where forty percent of the g.d.p. of the. attack. one of. the berlusconi government did in fact implements many of the measures proposed in the letter it also tried covertly to reintroduce provisions for the privatization of water which the italian people had voted down in the referendum the course official court intervenes. no you cannot rein should use. legal provisions to of been repealed as a result of her for us. this prompted european commissioner olli rand to write another letter to berlusconi seekin

this week, the head of the european central bank, mario draghi, warned the european parliament that theer than expected. he pointed to global factors, notably the us—china trade war and, of course, brexit. an early estimate showed inflation slowing to 1.6% in december, well below the ecb's target of 2%. the european central bank is forecasting growth of 1.7% this year, but that could prove to be optimistic. europe's biggest economy germany saw growth slow to 1.5% in 2018, the weakest in five years. in fact, it narrowly avoided falling into recession in the second half. the ecb is running out of options. its main interest rate is already at zero and it has already pumped $2.9 trillion into the economy over the last four years. now, there are big concerns over the impact of brexit. on wednesday, joachim lang of the german industry association bdi warned a hard brexit would be economically very damaging to germany and the wider eu, as well as to the uk. translation: all areas are affected from the car industry to chemicals, pharmaceuticals, engineering, electronics, they are all affected.