the e.c.b. has been locking in losses for pension funds and other passive investors across europe by basically buying up on their behalf bonds for the italian government at negative yields i.e. them and paying the italian government to continue with their reckless policies here they're hoping to have a similar sort of monopoly position that central bankers have that's the only way to compete with central bankers you as a businessperson have to compete with the central bankers they have a monopoly position and can print money at will but also burn money at will so here the rise in unprofitable companies is partly the result of the growth in the technology and biotech sectors where companies tend to lose money for years as they spend on customer acquisition and research and development but it also reflects the willingness of shareholders and deep pocketed private investors to keep fast growing up starts to float long enough to conquer a potential winner take all market today's public tech companie

the e.c.b. has been locking in losses for pension funds and other passive investors across europe by basically buying up on their behalf bonds for the italian government at negative yields i.e. them and paying the italian governor.

the e.c.b. has been locking in losses for pension funds and other passive investors across europe by basically buying up on their behalf bonds for the italian government at negative yields i.e. them and paying the italian government to continue with their reckless policies here they're hoping to have a similar. sort of monopoly position that central bankers have that's the only way to compete with central bankers you as a businessperson have to compete with the central bankers they have a monopoly position and can print money at will but also burn money at will so here the rise in unprofitable companies is partly the result of the growth in the technology and biotech sector is where companies tend to lose money for years as i spend on customer acquisition and research and development but it also reflects the willingness of shareholders and deep pocketed private investors to keep fast growing up starts afloat long enough to conquer a potential winner take all market today's public tech companies

that's true you know there are different government buying programs or possibilities for the e.c.b. to go out and buy bonds one possibility is now not going to be triggered or it's much less likely that it's going to happen you know in two thousand and twelve the e.c.b. decided that it would be legal to buy government bonds for the european central bank in case the yields of one country increase so high that the e.c.b. considers this a danger to the currency this is not going to happen now in terms of the you regular monthly bond purchases that b. does every month well of course more and more people in recent weeks because of italy have began to discuss again whether or not the phasing out of this quantitative easing program this purchase program can really happen as planned at the end of september this afternoon we'll get an update on where the e.c.b. stands in terms of its bond purchases and of course now the focus of many people on the markets is on this american led listen there from frankfurt thank you so much for this and crossing over to brazil where the government has slashe

the e.c.b. has been locking in losses for pension funds and other passive investors across europe by basically buying up on their behalf bonds for the italian government at negative yields i.e. them and paying the italian government to continue with their reckless policies here they're hoping to have a similar sort of monopoly position that central bankers have that's the only way to compete with central bankers you as a businessperson have to compete with the central bankers they have a monopoly position and can print money at will but also burn money at will so here the rise in on profitable companies is partly the result of the growth in the technology and biotech sector is where companies tend to lose money for years as they spend on customer acquisition and research and development but it also reflects the willingness of shareholders and deep pocketed private investors to keep. growing up starts to float long enough to conquer a potential winner take all market today's public tech companies

sees no reason to intervene for now with no signs of into bank stress among lenders the e.c.b. will susie's italy's crisis primarily as a political one. off financial correspondent sophie szymanski is in new york sophie how is all of this playing out on u.s. markets. yeah well it could not come as a surprise to learn about a wall street is back on the green correct we could see a turnaround in stock prices on wednesday and yet there was this moment of shock as opposed to reaction something that we have observed many times people when their political news that are not directly impacting american investors like the breakfast for example and then we see the markets recover out of quickly you must not forget then that it situations like these investors simply create their own buying opportunity by letting stocks drop and then they go back and participate in the rally or outward trend a quickly an exit in italy from the e.u. it's probably the worst case scenario but if and when this might happen is not bothering investors on wall street too much of these at the moment all right let'

prime minister designate that long that is tell me though at the same time what's happening with the e.c.b. how does this all affects the european central bank because it's been buying up a lot of italian bonds. absolutely and the discussion is heating up again whether all this will have an impact on the phasing out of quantitative easing on the end of those bond purchases that the european central bank for now has planned to happen by the end of september many traders here are saying that the e.c.b. cannot proceed as planned of course everyone is aware that italy needs the support from the central bank the economy has needed it for years and will continue to do so and there's the contagion risk the risk that investors start losing confidence in other countries of the eurozone because of the fact that they lose confidence in one country in this case italy oh there's another word the markets love conrads not just political uncertainty but contagion thank you very much for your analysis. trade tensions are overshadowing this is global solutions some of the berlin gathering of leaders in scie

protectionist policies mostly emanating from the white house and the president on the trunk and the e.c.b. has already warned about other economists as well so it doesn't really come as a surprise to the people who observe these developments very closely and so these people i include the people in the financial markets and the reaction here was practically not a reaction the docks for the german trend went down just a little bit but it's recovered sense and it's going up quite nicely. people hope

sees no reason to intervene for now with no signs of interbank stress among lenders the e.c.b. also sees italy's crisis primarily as a political one. as the europe recovers along with stocks let's cross over to frankfurt. how much of a concerted recovery is it really. well the recovery is happening everywhere where yesterday we've seen the biggest losses in terms of share prices and bond prices for example in the land itself the share index there has recovered has made up most of the losses it's experience yesterday but not all of them same with the german share index dax it. saw a bit of a recovery but look at this look at the dax trading today the market still has the jitters and most traders here are convinced that those jitters are likely to stay and that italy will be preoccupying investors for a while what about italy's ability to finance itself because that's been one of the biggest worries on markets. yes and you already mentioned that the average ilda on the ten year government bond has come down from the four year high it had reached yesterday today and the auction ha

what can the e.c.b. do, though? kevin: well, you know, right now they have the quantitative easing, and that is helping the credit in general. the quantitative easing is scheduled to be phased out later on. at that point, italy will face certain new issues, we can say. and those are the main things the e.c.b. could be looking at. of course, they also could be looking at italy right now in the event of speculation following that report of the -- the wrong report of the request for a writedown of the debt. vonnie: yeah, i mean, this is across euro, the serbian leader has just come out and said this is important. obviously nervousness in many, many countries where money will flow from or to given the situation in italy. where do you see it, you know, headed? is it going to unravel, or will they find, you know, a technocrat to take over, or will somebody step up to the plate and somebody else walk away from the place? kevin: well, they have been discussing this for a long time, and the chances are very good that once th

the e.c.b. picks up and vice versa and this data that nomi prins linked to suggests this is true and a lot of people to point this out peter schiff. richard jim rickards you know people that we've got on the show know me proves that the global increase in money printing as never decreased because you can't put a tape or a ponzi scheme so people say to me oh you know the fed's raising rates i thought you said you can't taper a ponzi scheme you can't that's why globally the money is being printed most people who write those comments in the you tube section most people live in a small little local area so they can only go access their local banks they don't understand that you know the warren buffets of the world and their friends can access free cash anywhere in the world and they they get to game the system because they're part of the global elite like you an organ or joe bag of donuts on the street can't access zero percent rates from the e.c.b. the point you make there is a big point of the rea

caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. attack one of. the berlusconi government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. courts intervened and said no you cannot rein should years. legal provisions been repealed as a result of. this calls to european commissioner olli rehn to write to mr berlusconi again asking for clarification. just. as a judge and i found a. judge of. italians who had already made up their own minds saw that sentence despite the outcomes of the referendum as an insult it also infringed upon an e.u. article demanding neutrality. so yes yes. see that they don't. who are not mix is. going to do your. group i mean is that fun

it was judgment the judgment of the e.c.b. . was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. attack one of. the bellas going to government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. the courts intervened and said no you can't rein should years. legal provisions been repealed as a result of. this caused european commissioner olli rehn to write to mr berlusconi again asking for clarification. as a judge of. italians who had already made up their own minds saw that sentence despite the outcomes of the referendum as an insult it also infringed upon an e.u. article demanding neutrality. this is it this i mean yes get is. say yes he. did and then here he's got this give this that you don't. know who are not mix is. going to do your. group i mean is that funny that we're going to prevent. the exact city you're. going to. do no it do

it was judgment the judgment of the e.c.b. . was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. attack one of. the berlusconi government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. the courts intervened and said no you can't rein should years. legal provisions to repeal as a result of. this caused the european commissioner olli rehn to write to mr berlusconi again asking for clarification. just. as a judge of. a tally ins who had already made up their own minds saw that sentence despite the outcomes of the referendum as an insult it also infringed upon an e.u. article demanding neutrality. and this. so yes it up with. scott just give this see that you don't. know who are not mix is. going to do your. group i mean is that funny that we're going to prevent just sit at the. exact city get a motel. you'll do it all up it don't want t

minister designate that that long that is tell me though at the same time what's happening with the e.c.b. how does this all affects the european central bank because it's been buying up a lot of italian bonds. absolutely and the discussion is heating up again whether all this will have an impact on the phasing out of quantitative easing on the end of those bond purchases that the european central bank for now has planned to happen by the end of september many traders here are saying that the e.c.b. cannot proceed as planned of course everyone is aware that it's only needs the support from the central bank the economy has needed it for years and will continue to do so and there's the contagion risk the risk that investors start losing confidence in other countries of the eurozone because of the fact that they lose confidence in one country in this case italy oh there's another word the markets love conrads not just political uncertainty but contagion thank you very much for your analysis. i can still smell the fumes of the diesel gate disaster it looks like dime has picked up where b.w. l

sees no reason to intervene for now with no signs of into bank stress among the e.c.b. also sees italy's crisis primarily as a political one. as the europe recovers along with stocks let's cross over to frankfurt the red bulls in code red how much of a concerted recovery is it really. well the recovery is happening everywhere where yesterday we've seen the biggest losses in terms of share prices and bump prices for example in the land itself the share index there has recovered has made up most of the losses to experience yesterday but not all of them same with the german share index tax it saw a bit of a recovery but look at this look at the dax trading today the market still has the jitters and most traders here are convinced that those jitters are likely to stay and that italy will be preoccupying investors for a while what about italy's ability to finance itself because it's been one of the biggest worries on markets. yes and you already mentioned that the every geode on the ten year government bond has come down from the four year high it had reached yesterday today

sees no reason to intervene for now with no signs of into bank stress among lenders the e.c.b. also sees each of these crisis primarily as a political one. off until chorus one of so fishermans he is in new york sophie how is all of this playing out on u.s. markets. yeah well it should not come as a surprise helena but wall street is back on the green track we could see a turnaround in stock prices on wednesday and yes there was this moment of shock as opposed to reaction something that we have observed many times before when there are political news that are not directly impacting american investors like the breakfast for example and then we see the markets recover out of quickly you must not forget then that it's to do asians like these investors simply create their own buying opportunity by letting stocks drop and then they go back and purchase a pet in the rally or afterwards trends quickly and exit italy from the e.u. is probably the worst case scenario but if and when this might happen is not bothering investors on wall street too much at least at the moment all right let

you know i'll actually be paying more attention to the e.c.b. meeting in june then i will be paying attention to the federal reserve meeting just to see if druggie strikes a more dovish tone one of its counterparts one of the governors the e.c.b. from france was out earlier this week making very hawkish comments and also by the way saying that tapering and beginning to raise interest rates should not be dependent upon any countries that happen to have debt issues within twenty four hours of this french governor making these comments we get the leaked memo out of italy that really stand that was all the buzz here in brussels it wasn't just so much that they wanted to back away from that treaty potentially abandon the euro by the same token they want actual debt monetization bart forgiveness as two hundred fifty billion dollars of euro in order to reduce their debt to g.d.p. this was an explosive memo that i hope gets more press across the ocean back in the united states we're happy to talk about it more we always appreciate you giving us a heads

the e.c.b. and the e.c. the troika stop that from happening because they're in the business of killing countries for the benefit of hedge funds like john paulson italy as they speculated back five or six years ago would be the next feast on the never ending moveable feast of i.m.f. the e.c.b. kill and destroy royal bank of scotland ask maim torture steal kill for they might be bringing in a parallel currency it's probably not going to happen with this administration if they are able to form a government but the fact that all the parties there want to want to end the population wants it does suggest that there is either the end of the euro will ultimately end the euro or it could inspire other countries to start doing it across the are the ones that aren't receiving any of the credit flow but the i.m.f. doesn't want it so it won't happen well we've got to go to a break much more coming your way so don't go away. across europe municipalities are taking their water supply back from private companie

protectionist policies mostly emanating from the white house and the president on the trunk and the e.c.b. has already warned about other economists as well so it doesn't really come as a surprise to the people who observe these developments very closely and so these people i include the people in the financial markets and the reaction here was practically not a reaction the docks for the german trend went down just a little bit but it's recovered sense and it's going up quite nicely. people hope that it will be an improvement in the next quarter or in the quarter we're at now and one of the arguments for that is that one reason for the growth in the first quarter being as slow as it was almost half of the quarter before was the strong euro it peaked out at one dollar twenty five and as we're speaking it's about a dollar twenty so that's much lower that's much more favorable for exports you use the trend but then you go on to say we could see some sort of improvement in the following quarters i mean germany may be slowing but there are quite a few member states of the eurozone that look q

not viable plus specially this but this point about debt forgiveness whether it's coming from the e.c.b. whether it's coming from the other european countries i think this is completely not viable at all because this would lead to an enormous turmoil on financial market i think we've got a ready some some flavor of how this could look like yesterday when you see that the yields on the telly and bombs really increased that spreads with a view the german government bonds also wide and so these these ideas actually not viable. to the chief economist. joining us from frankfurt thank you very much. into south africa now in the in a city of johannesburg has turned from a posh wide shopping district into a buzzing african trading hundreds of millions of euros worth of goods is being sold every year by thousands of trade is making this the dubai of africa but few seems to notice that as this cash economy operates under the radar of the a thought. over three thousand stalls run mostly by immigrants make this market complex in downtown johannesburg a lucrative pan-african trading hub. shoppers co

by the huffington post of this draft coalition paper about a basic income guarantee also asking the e.c.b. to give italy a two hundred fifty billion euro debt relief and yeah we heard it it was on the agenda or maybe even to leave the eurozone so there is some relief now that in fact this was only a draft and we don't find this anymore in the actual coalition paper but still they are warry to investors also with those new programs that they are thinking that could help to reduce the enormous they have those could cost up to one hundred and one hundred billion euros so as investors are worried in which direction the country will be heading throughout the next years you know. whatever happens our markets as one rule don't take it personally daniel cope thank you very much. to a deal set to cause a stir in digital money u.s. online payment giant pay pal says it's buying swedish e-commerce out of eyes atl pay pal is dumping up over two billion dollars for is that hole which makes credit card scanners for smartphones and tablets the surprise agreement came as the young company was getting read

let's talk to donna coppa standing by in frankfort forest so daniel this sounds crazy asking the e.c.b. to write off two hundred fifty billion euros of debt that is a ton is this really a possible scenario possible outcome of all this. well then i don't want to sound impolite but i've talked to many traders here on the trading floor and one was even wondering if they had too much of the great italian primitive all right ryan when writing this proposal down in their draft collision paper in investors are sure that the european central bank here and frankly it won't even consider this enormous debt relief but let me tell you this is just one issue what is making investors more nervous that it's very likely that we'll have a government in europe's fourth biggest economy very anti european with non realistic ideas about their budget and also missed most likely not able to bring big reforms to their countries that are very much in it because there is so much on the agenda a country that would need urgently a new tax system a new structural reform of their government body reforms of the just

well the prospect of a potential end to the italian crisis has calmed markets the e.c.b.reportedly has no plans to step in and ben we'll bring you the latest on that later in our business block but first just for now and we've been hearing a lot about how germany are gearing up for the world cup but what about their first group opponents mexico they had a somewhat lackluster start to their preparations with a friendly draw against wales but they have a good world cup pedigree and their evergreen captain could set a remarkable record next month and russia. his first world cup was back in two thousand and two now rafael marquez is looking at making it to yet another. if mexico coach juan carlos a sorry no names marquez in his final score list the thirty nine year old could become the only player to have caps in his country at five world cups. he's a man with an extraordinary career and i would say as a human being an example as well. as this issue will be about what he can contribute to the team on the field because off the field i think there is no debate that he is the pl

julia: big decisions await the fed as the e.c.b.fficials discuss the path forward. >> i would take that as a bearish signal to the u.s. economy. >> we are going to look through these transitory movements and look at where inflation is going. >> we will give additional guidance. julia: plus, another week of corporate news and earnings season. >> what we said was we would pay out 50% of our profits in dividends. >> it looks like tencent is not going to let go. they are going to spend more. >> is anyone surprised by these results? they have not been reading the news or paying attention. julia: it is all straight ahead on "bloomberg best." ♪ ♪ julia: hello and welcome. i am julia chatterley, and this is "bloomberg best," your weekly review of this week's important business analysis and interviews from bloomberg television. trade was on the agenda this week with talks between the united states and china scheduled in washington. but before face-to-face meetings began, a tweet provided an unexpected twist. >> donald trump has ordered the u

>> the markets had been expecting the e.c.b.o start balance sheet but the last comments started to that was at that and surprise for the markets. this puts the markets back into they were about two months about. the effort c.b. will eventually move but they're incredibly patient in doing so betty: despite what pickup in, the little people say h most would be shocking how low those yields had been. yvonne: that's the wildest we've years. 28 do you think that could still wyden before it narrows? unfortunately, yes because we think the effort c.b. is going slowed.credibly by all accounts the fed will times to three more this year and programs one or two times next year. us a two-year in the u.s. up towards a 3% level. think we quite get there this year but it's likely that the front end of the german curve can keep up after a few months, they should catch up. do you think the ftness across the board is justified or programs temporary? a global ertainly growth trade that fueled the in 18 months to 24 months markets and real bullishn

other member states let's remember that currency levels affect imports and exports affect how the e.c.b. is supposed to react at this stage it's hard to know how it will play out to but what we already see friend here is the capacity of all the players to come together and be able to stick to agreements made in a transnational context independent of whichever government happens to be in place and that is what you definitely need for the euro project to survive. in frankfurt thank you. was a little over a month before the next election in turkey president obama is trying to create an image of a country with a strong economy on first glance he is right she d.p. grew by more than seven percent last year but growth is not the only number that accounts for a strong economy other figures count as well and some paint an entirely different picture. many young people in turkey can't find a job a sure sign that the boom years are over one in five in that age group is no juggler's the country's economy has taken several hits in recent years one main reason more and more foreign capital is leaving

the euro crisis and that's because the euro zone has enough tools to prevent contagion we have the e.c.b. we have the european stability mechanism. and all those authorities can prevent and will prevent any contagion to other countries also even in the unlikely scenario that it to leave would leave what we don't expect because the majority of italians still support the euro we wouldn't expect that this would be the end of the euro because in other countries such as spain for example all the mainstream parties and eighty percent of the population behind the euro all right nevertheless italy currently rejects the e.u. austerity drive what could have brussels or perhaps also a girl in do in order to win over those anti european and to euro voters. well on the margin obviously increasing investments. by you thirty's would help but investments are mainly driven by the private sector and private sector investments very much depend on economic confidence and the current political turmoil in philly doesn't really help to increase that. so there's not too much you authorities can do to help italy

debt relief well investors here are sure that something like that won't be even considered by the e.c.b. and many here are even asking what was on their mind while writing this down yes italy has lots of debt but why should other european countries now pay for this we have to remember italy might be struggling but it's still the fourth biggest economy here in europe their latest g.d.p. report was with a plus of zero point three percent exactly on the same level with germany and also france but let me tell you that investors are more worried if this is just going to believe giving off political chaos in italy or the beginning of another financial crisis for the country. frankfurt thank you. i'm staying in italy where young people i christen the desperate one of the reasons of the possible opulence was so successful in the last elections youth unemployment in italy stands at more than thirty percent that's one of the highest proportions in the european union and so many young people will go to extraordinary lengths to apply for the few vacancies that are available. salerno south of the it

the e.c.b. and the e.c. the troika stop that from happening because they're in the business of killing countries for the benefit of hedge funds like john paulson italy as we speculated back five or six years ago would be the next feast on the never ending moveable feast of i.m.f. is c e c b.

euro debt relief investors here are sure that something like that won't be even considered by the e.c.b. and many here are even asking what was on their mind when writing this down get italy has lots of debt but why should other european countries now pay for this we have to remember italy might be struggling there is a lot of debt but it's still the fourth biggest economy here in europe their latest g.d.p. report where with a plus off zero point three percent on the same level with germany and also friends but let me tell you was making investors more war if it's just if it's just going to be the beginning of political chaos or the beginning of another financial crisis for the country. what else is moving markets briefly if you can. while investors here are still more focused right now on geopolitical topics like north korea like iran and like those trade issues let's talk quickly about the your you mentioned that was going really down to the lowest this year it has been going up a little bit again it's at a level of one eighteen u.s. dollar at the moment. thank you. the european commi

the halflings and poles of this draft coalition paper about a basic income guarantee also asking the e.c.b. to give italy a two hundred fifty billion euro debt relief and you know we heard it it was on the agenda or maybe even to leave the euro zone so there is some relief now that in fact this was only a draft and we don't find this anymore in the actual coalition paper but still they are warry to investors also with those new programs that they are thinking that could help to reduce the enormous debt those could cost up to one hundred and one hundred billion euros so yes investors are worried in which direction the country will be heading throughout the next years you know. whatever happens our markets as one rule don't take it personally daniel cope thank you very much. the diesel emissions scandal continues and this time it's luxury brand porsche that's lost in the small again the german transport ministry has ordered the com make it to recall around sixty thousand cars globally ordered has discovered illegal defeat devices in the diesel powered s.u.v. models kyin and mccann these make

the e.c.b. and the i.m.f. the current food aid package totals eighty six billion euros and it will run out in august twenty eighth in a preliminary forecast suggests that the greece's debt burden will reach around three hundred fifty billion euros this year but the economy is on the mend that means unemployment has dropped to below twenty one percent many greeks however work in low paid part time jobs and also taxes are high while pensions and salaries have fallen twenty to forty percent so the economic recovery has yet to reach average greeks. apparently is kook lee's starts his shift in a restaurant on the island of lesbos. he's working as a barista even though he's a trained educator. that is the president has been the state isn't taking any more applications for teaching jobs one of the that's why i have to work here like i still need to make a living there was i'm not embarrassed to do this but i prefer to work in my chosen profession but it's still. low wage jobs in restaurants or call centers are about