so e.c.b. they did mario draghi chairs his final governing council meeting today he'll go down as the man who saved the euro by slashing rights and buying up trillions of years worth of bonds he's headed the bank since november 20th 11 and before that god takes over druggy could take a negative interest rates even deeper into uncharted territory and restart quantitative easing in 2012 he made his most renowned policy statement to date in london saying he would do whatever it takes to protect the euro during the financial crisis began cutting rates historic low of 0 percent in march 26th jane is bond purchasing program oiled the euro zone's economic wheels unemployment started falling and the euro thrived new bond purchases drew to a close late 28000 by which time the e.c.b. had bought up something commercial bonds totaling 2.6 trillion euros so a moment of truth for the e.c.b. economist marcus sorry i've slipped what's for the new name because with markets well sorry i should know if it is wort

no it's not just trump insiders of the e.c.b. are reporting about loud opposition being voiced in the e.c.b. council yesterday against the restart of quantitative easing the restart of the bond purchases with of course the german bundesbank our national reserve bank here in germany being the most prominent up opposition but. not the only one and for many reasons the fact that the fed that the central bank is now really introducing bond purchases means that obviously the set of instruments that the e.c.b. head has is limited it shows that the potential the ability of the e.c.b. to really influence the real economy is very limited and of course there's the classical into instrument giving a drug addict more of the drug doesn't make the addict healthier exactly slow global growth virus invent it. france is warning it'll block face folks plant cryptocurrency in europe saying it fragments the monitory sovereignty of governments that was the message from finance minister poor no to a mayor as and o.e.c.d. conference own cryptic currenc

a fresh unconventional turn of policy is expected from the e.c.b. today the bank's governing council is deeply divided how low can interest rates go . asian markets are mixed there are hopes again of a full and frosty u.s. china trade relations but it's a wait and see game for investors. and. the other side of pharma stop wondering about their decision should leave the european union. and papers all and ice to business it's show time for the e.c.b. the european central bank is preparing to unveil what could be aggressive measures to boost the eurozone sluggish economy you know it's been a policy meeting later today could see a further cut in interest rates pushing borrowing costs further into negative territory the bank could also fire up its bond buying program again both moves would be intended to stimulate growth and push inflation to just under 3 percent the bank stock. car pulls in is that the easy bake what are the expectations. well an overwhelming majority of financial markets people believe that the e.c.b. today will no more the negative de

well the e.c.b. chief druggy certainly argued his case you just played the sound bite he said that since the last e.c.b. meeting inflation and economic activity has significantly weakened in the eurozone and that because of this the bold moves announced today or warranted but let me tell you why they come more and more economists here in the eurozone and out not only the conservative german ones are convinced that the ability of the central bank to really inspire the real economy has been exhausted that it has its limits and that such a monetary policy can even harm the economy by undermining trust in the central bank and in the system all the girls all together by you know fueling price bubbles on the property market spyin disrupt in the bond markets by telling savers that it's not worth paying exactly telling savers especially in germany it's not worth saving how much further into negative territory can we go here. well you know you played the or you mentioned the tweets of donald trump of course d

or let's go to the seat of the e.c.b. frank our correspondent standing by. she's the 3rd german to do so why. yes 2 germans before her resigned out of opposition to the loose monetary policy that the e.c.b. was pursuing and the policy has gotten looser and looser and before the last meeting just a number of days ago on the 12th of september the e.c.b. went even further down it took down the deposit rate for the banks have to pay actually in order to. deposit the money there does your 0.6 percent so the banks are paying their they're paying even more than before and what allowed and said before the meeting even was that she was in disagreement with the retaking . restarting the bond buying program and pouring money yet again and to the economy she and others don't obviously believe that it's needed at the time and we know that in the meeting several members voted no and it's said that they go was against this policy and this would be a strong statement to to get away from this policy resigning in a very public way like this. also. a new incoming president chr

have the e.c.b.ounce being the rate decision. >> i will watch economic data cpi at 8:30 s eastern. >> don't miss and tune into of the and analysis third democratic presidential debate live tomorrow. bloomberg technology is next in the u.s. have great evening. this is bloomberg. ♪ ♪ . . emily: i'm taylor riggs and san francisco. this is "bloomberg technology." titans of tech. oracle ceo takes leave. he announces he will take a leave of absence for health reasons. revenue comes up short. we will have details. plus, the cisco bread. i made u.s.-china trade tensions with john chambers, former ceo of cisco. and linking up.

further into negative territory this is part of efforts to bring inflation down to just under the e.c.b. target of 2 percent. now here is more new drug use rather downbeat assessment of the euro zone's economic prospects take a listen to the outlook for rio g.d.p. growth has been revised down 420-010-2020. the recent roundy the euro area growth outlook remey to the downside. these recent mainly pertain to the prolonging presence of uncertainties related to geo political factors the rising threat to protection is and vulnerabilities in emerging markets. all right chris roberts here now from debbie business so chris what are we looking at here from the european central bank are they trying to prevent a recession or is this an effort to mitigate the recession that is inevitable. kickstarting the economy is that's what it comes down to no matter what the end game is so to say my a druggie sees these species that the economy in the eurozone is faltering they slashed the central bank slashed its economic outlook and we look at germany europe's biggest economy growth contracted in the 2nd quar

has resigned 2 years before the end of her term neither the e.c.b. nor the german officials are being locked in slugger cited a reason for the early end of her tenure but the resignation has they're widely reported as the latest action in an internal fight at the e.c.b. over monetary policy including the recent return to bond buying by the e.c.b. under current president mario draghi the effective return of q.e. has been controversial among policymaking elites the controversy came to a head in mid september when mrs laughton flagger and her fellow e.c. board members from austria france and the netherlands unsuccessfully rallied to oppose the latest stimulus measures missed lodger's lager departure also leaves the e.c.b. s 25 seat board with no women in its ranks while christine legarde prepares to take the reins from mr draghi on november 1st. tempers have been flaring in the united kingdom's parliament as prime minister boris johnson sped back from the un general assembly in new york after a court ruled his suspension of parliament was unlawful after

are actually aiming for that was here's what the president of the e.c.b. mario draghi had to say about the move. the outlook for rio g.d.p. growth has been revised down for 2019 and 2020 the recent rounding the year oyur growth outlook remained 2 to 2 the downside. these risks mainly pertain to the prolonged presence of uncertainties related to geopolitical factors the rising threat to protection is an vulnerabilities in emerging markets. let's go to our markets correspondent conrad burns in is standing by for us in frankfurt hi conrad we heard from mario draghi there are some of the reasons behind this move but tell us what exactly are these measures need. now i mean this is a bold and surprisingly bold move by the european central bank this lowering of the deposit rate further down in negative territory that means that the european central bank really wants to force the commercial banks to give out money as loans as much as they can in order to keep businesses afloat to keep businesses liquid to make sure that they have enough money now the restart of th

the question is what does the job and i think here is the key question mr druggists concern and the e.c.b. about inflation expectations about the pick up the hope for a pick up in core inflation which is not taking place and so they are basically fighting and fighting against that one but there might be other issues behind the kind of pretty much stagnant core inflation and one could even as a devil's advocate ask the e.c.b. hey what's the problem core inflation has been at around one percent for the last 5 years and markets have basically now go down to that so why do you have to fight it with all means to get it up to close to want us to 2 percent good talking to thanks for joining us as stefan schneider from at deutsche bank at d b research. greatest successes of public health saving an estimated $2500000.00 lives every year vaccination rates are in decline leading to outbreaks of preventable diseases around the world it's a problem that will be addressed today by the global vaccination summit in brussels . not too long ago laughter filled this fisherman's family home in madagascar. bu

and they are quoting mario draggy who is outgoing head of the e.c.b. negative rates will not provoke the collapse of the financial system this is what mario draghi claimed as soon as you get official denial of course that is when to believe we are about to witness the collapse of the financial system. from. big countries accumulate big positions in gold that's an exit from because we know that over the past 300 years no fear money has survived they've all gone to 0 the average lifespan being 27 years with the exception maybe the british pound but it's lost 99.5 percent of its purchasing power so to stay in fear is an admission of venezuela i want to lose all my money or yeah i'm the why more republic it's all going to go to 0 people are exiting fear out there fear i have you know sitting. they are singing and of course we are here in la we go at a bit coin conference and this is the solver an individual saying adios to their exiting because they see that these negative rates are destroying capital and we see that the negative rates are destroying econo

i think we have got some pushback are the e.c.b. members in the recent times we had. we had e.c.b.ing that at this stage we may not go for the program. it's basically markets trying to realize that we're back in september. and certainly central banks don't have all the money that we need right now. so i think it's just a pullback on the extreme long position that we saw in the bond market. >> what are you expecting from the e.c.b.? you referenced it there. that's also part of the conversation around boons at the moment. the market seems be reigning in expectation with the stimulus and still expecting big things -- mario dragi. >> looking at thursday, we are looking for a package of policies. so we are looking for a dpo is it trade cut. we are look for a cue wi program. this should come along with a eposit system as well as strengthening our trade guidance. the contentious issue is on qui. they're still divided. i think if we get brs 30 billion move -- >> some people have expected mario will play with the timing the implementation of any q.e. when we see how trade tensions play out

and they are quoting mario draggy who is outgoing head of the e.c.b. negative rates will not provoke the collapse of the financial system this is what mario draghi claimed as soon as you get official denial of course that is when to believe we are about to witness the collapse of the financial system. from. big countries accumulate big positions in gold that's an exit from because we know that over the past 300 years no fee money has survived they've all gone to 0 the average lifespan being 27 years with the exception maybe the british pound but it's lost 99.5 percent of its purchasing power so to stay in fear is an admission of venezuela i want to lose all my money or yeah the wire more republic it's all going to go to 0 people are exiting fear out there fear adieux sitting. they're singing and of course we are here in la we go at a bit coin conference and this is the solver an individual saying adios to their exiting because they see that these negative rates are destroying capital and we see that the negative rates are destroying economies in fact w

further into negative territory and this is part of efforts to bring inflation down to just under the e.c.b. stung to 2 percent here is money or drugs rather downbeat assessments of the euro zone's economic prospects the outlook for real g.d.p. growth has been revised down for 200102020 the risks of rounding the year oyur growth outlook remain to the downside. these recent mainly pertain to the prolonged presence of uncertainties related to geopolitical factors the rising threat of protection is an vulnerabilities in emerging markets so the banks get a hit why should we care well let's ask stefan schneider chief international economist and head of macro trends that the dacha bank research welcome to day doubly so how will cutting bank deposit rates to minus 0.5 percent affect may affect consumers in the euro zone. that's very hard to say it will affect banks in the northern countries actually negatively but there for the e.c.b. has also started a kind of tearing which bit except part of the excesses for serves from the negative deposit rate so overall the impact should not be that large and

month the bank says the new policy will quote run for as long as necessary interestingly outgoing e.c.b. president mario draghi who is preparing to pass his portfolio to current i.m.f. managing director christine lagarde clearly indicated he expects elected policymakers to make the next moves to stimulate the flagging euro zone economy saying now is the time for fiscal policy to take charge mr draghi discuss the cause and contacts for the new policies because the protracted slowdown in the eurozone economy he's actually more marked day in expected this the 1st element. the 2nd element is the persistence and the persistence of downside resells trade nature by the geo political nature in the eurozone. and checking in on virtual currencies and the growing push for regulation the french finance minister is reinforcing his government's hard line against facebook's plans to launch their own digital currency libra which specialists are eager to point out is not actually a crypto currency joining us now just doesn't tell is cryptocurrency analyst ben swan then it's good to have you here keeping

the e.c.b.ed new stimulus yesterday. also to the upside today, auto parts and autos in general are doing well. it's up more than 3% and could be on trade optimism. faurecia gets half its revenue from the u.s. and china. and i.m.i. runs over 2.5%. risks to earnings are seen over the short term. francine: let's get to new york and the news with viviana. victoria: viviana: there may be chinese commitments ton intellectual property and purchases. president donald trump would be open to it but prefers a lasting arrangement. president trump: it's something people talk about. i'd rather get the whole deal done. we've taken in many billions of tariffs, i'd rather get the entire chinese done. if we're doing the deal, let's get it done. viviana: warnings have been declared for the bahamas that was just battered by hurricane dorian. different models have it moving to florida or the gulf of mexico. after record setting numbers, europe hoping to become the first carbon neutral continent. over the next two da

a 1st impression of what the e.c.b. is monetary policy could look like and christine lagarde who is set to take the helm in november the former i.m.f. chief and french finance minister doesn't plan to rock the bolt. i therefore agree with the view of the governing council that a highly accommodative policy is warranted for a prolonged period of time in order to bring inflation back to the famous below but close to 2 percent that could potentially mean negative interest rates something banks aren't happy about law interest rates in europe have already made european banks less competitive than their u.s. peers and that's a concern lagarde also raised at a confirmation hearing in brussels they are also some important questions on the arisan that monetary policy will need to address. first though the impact of unconventional policies continue to be net positive we need to be mindful of the negative effects and the potential side effects of those policies and we have to take the concerns of the people into account and that's

as italy's former central bank chief took over the e.c.b. in november 20th 11 economists and the media were skeptical the global financial crisis was still reverberating through markets and eurozone member greece was close to economic collapse but turkey didn't hesitate he set about encouraging lending within the eurozone with a string of rate cuts in march 26th seen they reached a historic low of 0 percent he's even handing on negative interest rates to his successor christine legarde something once considered thinkable the e.c.b. also bought 2.6 trillion euros of sovereign bonds from financially weaken member states and later private company bonds the cash injection saw the eurozone economy pick up speed again and unemployment reseed critics say asset purchases are a form of borrowing against future generations but doing whatever it takes to put an end to the eurozone crisis and also put a swift end to speculative financial market bets against the euro aimed at causing its collapse. was over to wall street now and our correspondent yen sco

deposit rate will go down that is banks will have to pay an even steeper fine to park money at the e.c.b. whether that really does anything to address economic woes you won't know but the market will be looking forward to that and reacting if it doesn't happen all of us in frankfurt thank you. and now to some of the other business stories making the news chinese internet programmer and alibaba is to buy the e-commerce business cola from the chinese company net ease for $2000000000.00 the platform specializes in the sale of luxury foreign goods the purchase is part of alabama's attempts to secure a niche segments of the online retail market china's central bank has loosened its reserve requirements for commercial lenders across the country freeing up 120 $6000000000.00 for lending beijing's their latest effort to stimulate a slowing economy that has been hard hit by a dispute between china and the united states and the european union has responded to pressure from the european steel industry by reducing iran is in the quota of foreign steel allowed into the block from 5 to 3 percent the s

the world also is often described as the printing of money and what's going to happen is that the e.c.b. is going to stop borrowing 20000000000 euros every month just put more money in circulation in the hope that starts to fall into the hands of businesses and people through investment and they want us therefore to spend that if we spend this will boost the economy will it work. well i think if i say there's a great deal of skepticism about whether or not this will work i mean we've already been in negative interest rates in the euro zone for a while now and it doesn't appear to have had the great effect of increasing investment. but mr jocky did make what we can describe as a veiled call a very thinly veiled call to the governments of the euro zone when he said fiscal policy needs to be the main tool there were last there was laughter in the room even there isn't i like particularly amusing phrase in the e.c.b. isn't normally about of last when he said because it was such a thinly veiled appeal to the likes of germany countries that have got the reserves of money to get spending the e

a new stimulus plan and boosting the eurozone economy along the among the measures outlined by the e.c.b. president mario draghi wants another cut in interest rates pushing borrowing costs further into negative territory this is part of efforts to bring inflation down to just under the target of 10 percent interest mantra of his rather downbeat assessment of the euro zone's economic prospects the outlook for real g.d.p. growth has been revised down 420-010-2020. the wrist surrounding the euro area growth outlook remains to the downside these risks mainly pertain to the pro long presence of uncertainties related to geo political factors the rising threat to protection is and vulnerabilities in emerging markets. because i'm very happy does he has married drug rob what's from d.w. business can explain what mr drug was talking about well rob what's the e.c.v. trying to do well this is the c b m r e a drug yes but it's sort of trying to go out with a bang with one of his final acts as the president of the european central bank and just get the european economy going because you had that asses

stimulus plan aimed at boosting the eurozone economy in what is expected to be his last major decision as e.c.b. president are you a druggie announced another cut interest rates pushing borrowing costs further into negative. oratory on this is part of efforts to bring down inflation which is just under the easybeats target of 2 percent. euro's morea druggies rather down beat assessment of the euro zone's economic prospects to list the outlook for real g.d.p. growth has been revised down 420192020 the recent rounding the euro area growth outlook remains to the downside. these recent mainly pertain to the prolonged presence of uncertainties related to geo political factors the rising threat to protection is an vulnerabilities in emerging markets. all right chris roberts your now from debbie business so chris what are we looking at here from the european central bank are they trying to prevent a recession or is this an effort to mitigate the recession that is inevitable. kickstarting the economy but once that's what it comes down to no matter what what the end game is so to say my a druggie sees t

new investigatory role in a year's long cascade of scandals at deutsche bank reuters reported that e.c.b. staff are considering opening a formal investigation deutsche bank for alleged authorized purchases of their own securities specifically bonds classified as $81.82. joining us now to once again orient as to the global effect economic events of the day is richard wolfe professor emeritus of economics at the famed you mass amhurst and author of democracy at work a cure for capitalism richard wolffe professor wolf there is so much to get to here since we saw you last but 1st. let's go to the u.s. central bank the federal reserve which as expected lower the target range on the key federal funds rate by $25.00 basis points wall street seems to be giving another thumbs down on the rate cut so looking at this let's go to. let's go to the jay powell will explain the fed's choices they're cutting rates to boost the economy but here's what a poll said recently about the state of the u.s. economy. so we're not forecasting we were expecting a recession as i mentioned incoming data for the united

month the bank says the new policy will quote run for as long as necessary interestingly outgoing e.c.b. president mario draghi who is preparing to pass his portfolio to current i.m.f. managing director christine lagarde clearly indicated he expects elected policymakers to make the next moves to stimulate the flagging euro zone economy saying now is the time for fiscal policy to take charge mr draghi discuss the cause and contacts for the new policies because the protracted slowdown in the eurozone economy he's actually more marked than expected this is the 1st element. the 2nd element is the persistence and the persistence of downside reese trade nature but also geo political nature in the eurozone. and checking in on virtual currencies and the growing quest for regulation the french by.

the e.c.b. i'm they all say new stimulus plan and slash interest rates again it helps to boost the eurozone economy but how much further into negative territory can rates go also coming up there are hopes again of a store in frosty u.s. china trade relations but it's a wait and see for investors. and china has been a lucrative market for american getting sangat but the trade conflict with washington and beijing is hurting business. welcome to the of your business asia want to get johnson but they're good to have you with us so in a much anticipated policy meeting the european central bank has approved a fresh stimulus package for the euro zone the package includes a further cuts off the banks the positive rate now at a record low of minus 1.5 percent the e.c.b. also approved a new round of bond purchases of $20000000000.00 euros a month starting in november a both measures aimed to stimulate growth and push inflation to just under 2 percent that's the bank's target. let's just take a listen to w

now richard the same question should we expect more of the same from the e.c.b. and miss legard if correct and the policy is basically a fact that. now i think peter's right about this this policy has not worked it hasn't worked for quite a while that's true of a quite a few of the policies that have been turned to in the wake of the crash in 2008 i think the real question is whether the i.m.f. gets beyond or the world bank or any of these institutions get beyond the policies that haven't worked to begin to grapple with the seriousness of the dislocations in global capitalism and come up with new ways of scuse me to intervene i don't see that so i become quite pessimistic that they're just going to be treading water especially with the uncertainty of bragg's it and the uncertainty of the united states china trade wars and the trumpet ministration all of that they're gonna stick keep doing what they're doing crossing their fingers at the problem doesn't get worse my guess is it probably will and back to the issue of interest rates you are to gurus on this issue th

sparta bank berlin and he says that the negative interest rate policy of the e.c.b. is ruining the financial system and is a socio political poison says frank kohler c.e.o. of sparta bank berlin the financial system is absurd if we have to explain to the children that money has a negative value and thus debt is good because you may not have to repay anything again this is one of the things we've been covering and it's an important thing to look at since 2016 because everybody is looking for like some sort of mythical reason for all the stuff happening around us the populism the socio political poison that is negative rates that is the fact that we have in deed genuinely consumed the next 3040 years of of 5 productivity and assets right at the behavior of the debt black color still amongst us living zombies so when you go into negative rates they will go into your bank account and they'll say we need to take some money from your bank account and that will become 2 percent a year then 10 percent a year then 100 percent then they'll say well your car is also securitize

in the us europe the e.c.b. in japan and we still haven't got anywhere near the levels of growth that we had pre-crisis so the output gap between the protect what could have the growth we should have had a more we do have it remains very long yet we're we're in a bad situation i think and britain. half a trillion of this quantitative easing and even voices in the military will see committee at the bank of england saying it's not working yet well there's voices everywhere now even some of the top central central bank governors raising questions about q.e. . druggy in his announcement talked about the need for governments to do more expanding fiscal policy and that's a view that's becoming increasingly prevalent i think amongst monetary policy makers governments aren't yet getting the message that we still haven't seen expansion in fiscal policy to create demand in the economy that i think kids need. the roots of the response problem to what we have right now are the roots to be found in postings because. i know y