has made sure that the entire world is just a click away technology has seeped into our every day draghi and is here to state but many skeptics argue that constantly staring into our screens is detaching us from the nature that surrounds us this week we interview suit of the people who were trying to bridge this gap with their innovations hello welcome to eco india. coming to you from mumbai i want to slowly inching towards a population of 2000000000 people and more the number of people the creator the fight for space what would be amongst ourselves but even with other species that inhabit a planet for decades the people of possum in the south indian state of could not have been there too long to heads with the elephants that inhabited the region often proving fatal for both man and animal but it acknowledged to be a solution is saving lives on both sides of the divide. the so easy but also when we do it right i was supposed to arrive this morning but i couldn't aren't so your message in the morning see there live from sat down do a lot often breaks up 2 signs of elephant movement throug

draghi there. are many of them are people who lived in internet cafes and are now homeless. people who were just getting by before but are now unemployed and only have a few 100 yen to their name. yuki each day is hungry today's meal is rice fish and vegetables he has $10000.00 yen left that's about $86.00 euros no money no job and time is running out. in many parts of rural mexico traditional food and ways of cooking a very much alive and well. also the women of chiapas for their recipes and many people working hard to hold these traditions. in the village of cardenas the men set off for work in the morning the women meanwhile are already hard at work they're busy cooking a range of dishes bubbling away in their pots and pans is impressive that's because in the evening they're expecting a visitor someone who's a great fan of their cooking skills. so what are they making. through. their herds to the corn to make the tamaulipas when there's the tomato sauce the. tamales are a traditional mexican dish made with corn coated with various sources and then wrapped and cooked in ba

that frustrated future reform, when mario draghi bailed out, that ended the emergency but it also ended for a more political integration. i expect that to happen now. this will happen. it will be substantial, this package, which is small. the eu is a 14 trillion heavy economy. years.lion over 4 [indiscernible] you are right to it. it is tentative. one-offfits if it is and spread out over x years, is it to the benefit of the banks, the financial elites, the wealthy or is there a trickle-down effect? wolfgang: they have yet to define how to spend the money. the problematic aspect is they have decided the countries. this is not a classic program. spending priorities like environment. billion, something like that, and the idea is to give it to companies for investment in infrastructure, hospitals, research and development, that kind of thing. intended to be financial transactions. well, themes off investment program, it should be the one the eu had in the last crisis but did not. tom: you mention the netherlands. as well, how do the netherlands fit into the major countries of the eu? cultur

matt: we don't know if mario draghi would have acted if the market had forced him to.think is the key point and with regards to that chart, yields, i to nominal think the spread is what really matters. not just the level of the yield. airline, another industry getting help is the airline industry. it is getting stricter on measures to prevent covid-19 and apparently, compiling a list of noncompliant passengers? i feel like i am in east germany, but we are talking about the u.s. annmarie: the airline is in a tough place. as we see more passengers want is risk and there the data points to the possibility of a second wave and in some parts of the united states and around the world, we are seeing an uptick in trends in covid-19 infections so airlines are getting tough on safety and united is banning anyone on flying if they refuse to wear a mask. a trade industry group saying it will not just be united, but there are lines like american, jetblue. they will be vigorously enforcing their mass crew. -- mask rule. a mask will be as important as your plane ticket. anna: another

would it be a problem for the stimulus to come replicating that standoff last year before mario draghi left. >> i think justifying the position from the different angel was a valid position they will bare fruit when those become available in the meantime, the playbook cannot change it is one country, one vote at the time support is absolutely needed. imagine the siesz of the program skpapded as much as $760 billion. if you expand by 750 billion, everyone knows that is inefficient. that's going to be counterproductive and it will force the ecb further down the road to do more. that is when it started to do more and yet, we have the reaction >> sounds like this will be an important meeting to watch director european economics at c citi be sure to join annette and me for this afternoon's ecb decision time. coverage begins at 13:40 cet >>> freeing up access to loans to smaller towns and counties and several key institutions all states will be able to designate two cities or counties for notes. and designate institutions that rely on activity such as transportation or airports to borrow und

--is interesting that we see when we see central banks do inething, -- mario draghi 2012 said we are prepared to do whatever it takes. it did not need to do anything, the market just believed it. i think when the fed is talking about rates being zero, i think market believes that will happen. what is going to be interesting is how that curve steepen's at what pace it will steepen as we move into next year, as we move into more of a recovery phase, whether or not yields will remain low. and now we have this argument on this debate about whether or not youfed would assert yield -- assert yield curve control. it will be interesting to see how yields move in that segment of the curve. with this debate currently hanging over the markets. the two year yield, don't they just test that down poured debt down toward .05 .01 or try to test a negative statistic? certainly not in yield curve control. in this environment, perhaps that would not be the first thing for them to do. it will be interesting if they control, to say having the one year, two-year, or three year at zero, i don't think they

strengthen,ues to watch for christine lagarde to take a page out of mario draghi's book and jawbone theuro lower. taylor: you will be leading our euro coverage a. we are getting a lot of comments about yield curve control. what are we waiting to hear about that? the fed already has nine lending programs that it introduced to fend off the pandemic affects on the economy. you can argue it does not need to launch any more programs at the moment. financial conditions have made a v-shaped recovery for the most part. been clear about not going to negative interest rates. but the federal reserve is thinking ahead, and it is never too early to start debating the merits of perhaps new measures. yield curve control is appealing. instead of setting the target for the overnight lending rate, and letting the market set the rest, the fed would target a long-term rate, thereby keeping rates lowered to stimulate the economy, support businesses and consumers. in world war ii, the federal spente did just this, and not as money as it could have. then already went down course of negative interest rates and

in addition to negative interest rates and qe, mario draghi of the ecb introduced another tool in 2014the supercheap longer-term loans known as tltro. banks can always borrow short-term from the ecb, but tltro's are different because they are cheaper and have a longer maturity. three years in this case. the goal is to entice banks to lend out more to companies and households to spur the real economy by also subsidizing the banks from the negative hits they take from negative interest rates. as a result you have seen loan growth pickup. the ecb has extended three rounds of ltro. this is round four. you and guy speak with megan greene of harvard kennedy school , she calls tltro the biggest bazooka in the arsenal. the ecb can set the tltro rate below the deposit rate. the rate can be as low as -1%. the ecb is paying the borrowers to take out a loan. tltro is also set up so the more a bank borrows, the cheaper rate it gets. as for market impact. one side benefit is banks can use tltro as a carry trade to buy higher-yielding assets such as italian or spanish government debt. breaths --elp t

kevin, when we heard somebody talking about such things previously, it was mario draghi and he said basicallydo whatever it takes, and then he did not have to do anything because his words were so powerful. his powell missing a trick? the announcement factor, the ability to do something but not need to do anything is a powerful tool for central banks. why is powell not being smarter about this? ther powell: -- kevin: markets have reacted favorably to the announcements that have been made. there are almost a dozen facilities that the fed has dug up over the course of the last couple months. there is still an enormous amount of uncertainty. it is the hope the economy can come back and i think it is the base case for the fed that things start to improve going forward. i think the fed is very conservative. they are also quite cognizant that this could potentially see lockdownsave, and could go into a quarantine again. i think they are just being extra cautious right now in making sure the tools they have intact andmain fully that financial markets can rely on them for a sense of stability and con

they are going to do whatever it takes to deal line from mario draghi it there's tons of liquidity. they is pressure because will continue to have that. achieved a fed has , butf the yield curve equity markets are soaring and there does not to be a lot of dress in the corporate market. the fed has done its job, although i think chairman powell will have a difficult time walking the line to show how uncertain the recovery is. providing the cuddle the markets need. think i'll would be remiss in being too optimistic, because that would take the pressure off. guy: i read a couple of interesting pieces, one of which was written by you, the other talks about ak shaped recovery. significant they for suffocation between the winners and the losers as a result of covid-19. do you think the fed will have to talk about this today? because they were certainly talking about the other day. given what'sk going on in the u.s. with social unrest, the fed will address this, it would be tone deaf not to, even if it's not the fed's lane. in the last crisis, the fed divided all of this spent -- stimulus

draghi made his presentation around whatever it takes, that whatever it takes reflection in terms ofhifting european policy, we did see also euro strength so we know it will be an important part of how the reflation package is going to be delivered into the euro zone so the ecb are going to be looking for a combination of falling periphery spreads and the weaker euro over time. and it might mean that we need stimulus evolution of packages being delivered. the critical thing to understand of course is it is not just about the ecb at this point, so we are in what i call the post interest world at this juncture, and what we saw yesterday, perhaps even more important than the ecb, is signs beginning to become clear around a more coordinated monetary policy and fiscal policy working together. news, becauseve in principle, it allows fiscal policy to be taking a little bit more of the driving seat in driving force to move inflation back to target over time. i think we have got to watch the ecb and the fiscal side as well because if that is delivered in enough size, then it is potentially a

it's like the mario draghi ecb days, whatever it takes. certainly a strong message from jerome powell. >> i agree. i agree the fed is all in here. three main take-aways from the fomc today. one, they will remain very very dovish. they don't expect to raise rates at any point over their forecast horizon and their inflation and employment expectations suggest they should stay firmly on hold. two, the fed shifted to a monthly pace of asset purchases. they say they are going to buy at least $80 billion of treasuries a month, at least $40 billion of net agency mbs each month. i think that's very encouraging to the market. it provides some clarity, helps the market plan for all of the upcoming treasury issuance that's coming down the pipeline and the fed retains flexibility to do more if they need to. third and finally, the fed is thinking about additional tools they could employ in their tool kit. chair powell talked about yield curve control. he noted that stit's still an on question, this is something the fed is still studying and if they put

because wenteresting are finally seeing some fiscal would haveich draghi given his left arm for a fewre seeing everyone get behind it. anna: ok, eddie, thank you for joining us and i'm sorry to interrupt. "surveillance" is up next. this is bloomberg. ♪ ♪ francine: stocks fall on fears of a second wave of infections. 20 u.s. states see arise in cases. your reopens its borders. france, germany, and others remove travel restrictions to the eu to spur tourism during key summer months. china's economy continues its recovery. industrial output rises through --though the number

mario draghi did not succeed. christine lagarde west a do everything she can.flation is going to accelerate slowly. 1.3%oes not see -- only at year-over-year by the year 2020. the ecb cut the gdp forecast. a .7% for 2020. if there is a second wave, could be as weak as 12.6%. it is important for everyone who watches today that this comes one day after germany approved a $136 billion stimulus package. now the ecb jumps in. a lot of phrases tossed around bugbear throwing money in -- around like they are throwing money in a joint effort. ing in germany called this economic policy fireworks. she was quoted saying, this is huge. haslinda: whatever it takes they say. now the focus turns to the u.s. jobs report again. what is expected? kathleen: millions of jobs lost again in the month of may. and, not quite as many. the unemployment rate getting to levels we have not seen since the great depression. payrolls were down 20.5 million. may, expected to be down 8 million. not quite as bad. maybe it shows the worst is behind us. unemployment, 14.7 percent in april. one litt

mario draghi spent an entire career trying to bring about inflation and one thing that became clear ishat qe is not a hammer. it just was not really working that well. demand is probably a huge part of the issue. do you see that coming back at the end of summer, at the end of the year? evelyn: it will be a gradual process. maybe to see a first point in was not coming back. inflation expectations have started doing it very quickly. do not know where inflation expectations would be today had we not had all that ecb action. it could be already much worse than it currently is. in terms of demand, i think it is very interesting. an ecb has made this as inflationary or disinflationary shark. it is because demand is very low and does not match supply. we will probably see -- we should see a short bounceback in some demand in may already, maybe in june, but then peter out again. in our forecast, a lot of services sectors do not get to pre-covid level demand again. get that scenario at first. the levels were much lower. it did imply a persistently larger output cut. that is not good for on empl