and all the ecb does -- most of what the ecb does is provide liquidity. which is the manifestation of the fear of insolvency. they only address insolvency to a very limited extent. they do at a certain extent. $1 trillion, in my estimate, involves over the three years, a net subsidy to the banks by the ecb of at least 100 billion euro. because they're giving the stuff for out over three years at a rate tied to the re-fi rate which its 100 basis points. 50 basis points by end of the year. every the threeies. 60 basis funding against any rubbish collateral. so if they had to get that funding in the market it would be 400 basis points plus if they could get it at all. there is a massiveness to the subsidy involved. the 100 billion for the euro area, a fraction of what is required. that its what the estimates said was required. we know how good these estimates are. represent were, the spanish central bank, in -- in march 2011? right. the total capital need of the spanish banking system. estimated, $15.15. nice number. a week after this was announced. proudly,

call the ecb's bluff. but i think that's still in the back more kpocket. >> chris, you were saying there's a hope that draghi might hint at further easing down the road. i just wonder whether he hasn't changed the tactic, communication tactic. it sounds a lot like bundesbanker to me than trichet did because he seems to have gotten off the word coding, the monetary closely and the watch out for and next month and what not. i have the feeting that he won't let on when he cuts rates. am i wrnk? >> i take your point. it used on to be a code with trichet, it was all about those key words. and i guess his background as an investment banker rather than a central banker means he's perhaps less versed in that language. i'd love to see him come out and really do it today. really surprise people. and who knows, maybe he will. he surprised people with the ltro program last year. we're still learning how to live with the new head of the ecb. so i think you may be right, but the markets need something. he's playing with

the e ecb can pull out the big bazooka. they print the stuff.hey have the massive capacity, but they rightly think that it's not their job to act in a fiscal capacity. they have been willing to do so only when nothing stood between us the disorderly collapse of a sovereign or a disorderly collapse of systemic reports of financial institution, or now it is exit. or indeed exit via contagion. let me focus on this last thing. the risk to the rest of europe actually doesn't come from direct linkages of trade or portfolios. greece is 3% of your gdp. you can barely find it. and the portfolio exposure to the greek sovereign and the -- also the big banks has moved from the private sector to the official sector, to the ecb and to the efsf and the greek loan facility. and the rest of the exposure to the sovereign has might grated back home to greece. so this is manageable. for the rest of europe. the fear is, of course, that there will be contagion of exit fear. and exit means three things. new currency, say next -- assume the market focuses on portugal a

you were talking about brussels and the ecb.i has shifted his stance to move away from just talking about the ecb's mandate to saying that they very much would prefer to see greece remaining a eurozone member. so breaking his traditional silence potentially that has on do with what we heard out of the central banks of ireland and belgium. they were saying it wouldn't be a big deal if greece were to leave the eurozone, but draghi very much holding on to we want greece to remain. >> louisa, thanks so much. >>> angela merkel is due to hold a video conference call today hoping it will go some way to helping the leaders form a common line ahead of the weekend's g-8 meeting at camp david. apparently they'll discuss positions ahead of the g-8 meeting. this is due afternoon 1500, 4:00 london time. which eastern would make it -- >> noon? >> 11:00. >> if you want to offer your suggestions on what this call might look like, what they might say, tweet us, e-mail us. spanish economy meanwhile is confirmed in recession in the first three mont

good insight on the ecb headlines.ictures, we'll talk to the ceo of one of the biggest players in the space. when we go. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule. >>> in the race to become the insta gram of videos an app is gaining steam. recently nabbed a big seed round of funding of a who's who list of investors. since facebook highlighting the app, socialcam went to 50 million users today. socialcam's ceo joins us this morning from san francisco. michael, good to have you with us. good morning. >> thank you. great to be here. >> 50 million users. a list of angel investors that somebody said reads like the roster of the "avengers." are we at a moment where video is truly going mainstream? >> i think so. i think for the first time you have millions and millions, hundreds of millions 0 of people who hav

. >> after reports suggest the ecb isn't willing to help bail out ban kia. >> they dampen speculation of a massive stimulus package saying beijing doesn't need to intervene on the same scale as 2008. >>> okay. so a warm welcome to the program. you'll see it's pretty hot for equity investors right now. one hour into the trading session, outbeaten by a ratio of 9 to 1. we snap three or four gains. the fears going on with spain right now. on top of that you have the overlay of these comments suggesting china isn't going have any major stimulus policy. ftse down. the contact core rarn down a per cents. the ibex down another 0.8. down over 9% already this month. there will have been none earlier. that is still the case. the weakest utilities. but then basic resources down 1.6%. the dollar index is up at 20-month highs. comments out of china, all of which is adding to a poor outlook as far as quantities are concerned. more indian stanley coming out and saying the super cycle is over for commodity prices. take look at bund yields. currently at 1.347. we've been below 1.34 this morning. ten-y

. >> ecb president calls on our pea an policymakers to he reform the banking sector to restostor credibility. >> adjustment by banks as well as within the financial system more broadly is crucial. >> and growth in india slumps way more than expected to a nine year low. spelling economic trouble. >>> so welcome to today's world wide exchange. extraordinary moves in it asset classes in the last 24 hours. >> and as we saw overnight, things moved even lower. asia continued that risk off mentality. i don't think anyone if you had asked back during the 2008 financial crisis, if we would ever see yields at those levels again, people would have said not in my lifetime. fast forward four years and we're at fresh record lows. >> there's a good article where somebody wrote that it was quite feasible to see yields go a lot lower. >> oh, yeah, a very wise sage. >> we've had german unemployment data out, as well. season hely adjusted jobless rate 6.7 versus 6.8% in april. euro-dollar just back over that 1.24 level. we've been down to 1.236. so at the lowest levels for about two years. >> we're getting pig

. >> i think you'll see the ecb step in first. i think you'll see a resumption of the smp, spanish yields move past 7%. italy is in much better shape than spain. you'll see a resumption of bond purchases. and that will give germany a bit of clout to negotiate the fiscal and economic integration that is needed to facilitate euro bonds and euro bonds is a big part of the solution. once you have fiscal integration and a euro bond, the euro becomes viable all of a sudden and those are the two mixing ingredients. and you need panic to force the hand of politicians and central bank. >> so at the moment, though, what do you do. >> we're short euro. europe will remain in recession. you want companies that aren't getting revenues primarily from europe. you want stable cash flows. something we've got wrong is we're short bunds and i still think that has to unwind. >> let's check what bond markets are doing. the ten year at 1.41%, off record lows, but still incredibly low. france ten year going for 2.46%. you just heard patrick saying he's s

the protesters had intended to march in a heavily guarded hotel where the ecb was meeting, but theiremonstration was strictly contained. inside the building, the leadership of the european central bank was giving a little away about their deliberations but afterwards, the ecb president was only prepared to say the key interest rate would be left unchanged at a record low of 1%. and he stressed that economic growth should be as important to governments as austerity. >> unfortunately, often countries found themselves in urgent situations where they basically had no time other than doing the easiest thing, which is to raise taxes and reduce capital investment in expenditure. but this, even though it can be understood to be a short-term measure, it should be corrected in the medium term. >> like greece and portugal, spain is trying to overcome its crippling amount of debt by cutting public spending. but the madrid government itself has calculated that this means the economy will probably shrank by 1.7% this year. many spaniards feel that their country will be stuck in recession for a lon

they can't get access to ecb funding. are insole vent, they're not deemed solvent enough to use ecb liquidity. that's not new and that's one of the things that we just need to wait it for. we hope these banks get that money finally. another part of the plan is the privatization program. and that's why i'm here. but the talk is on hold until after the election. but it's the largest shipping industry in the world. it represents about 16% of global capacity. arguably it shouldn't take much pr and china invested $4.2 billion in the industry. they run one of the ports known as pier 2. also investing in a third. volumes have increased, so arguably they're doing something right. but the shipping industry really has struggled. some data show the number of vessels and the number of companies here has actually increased in 2011 from 2010 levels. there are a number of factors potentially at play here. greek shippers make the point it that they understand the cyclicality it of the business and they put money aside in the better times

cuts the ecb are supporting. we're looking for one of three announcements from will there be a change in interest-rate? we are not expecting a change on that. will there be a change on policy on buying bonds? that is something the spanish government would like to see the ecb do. again, we're not expecting to see any movement there. in the past, it has come back up. the third area where we might seek movement is the availability of cheap loans, the ltro program. they did it in december and february. fed did help boost the banking -- did boost the banking industry. >> we have the one move in december and february. yes, the ecb takes more risks. two, there is this risk that if a lot of liquidity comes into the economy, we see inflation. right now, this risk is very small. inflation is probably the smallest concern we should have in a situation with the eurozone economy. i think the risks are there, but they should be limited. >> we are expecting a decision in the next hour. >> the battle of the smartphone. samsung v

ecb head mario draghi said there was a need to cut deficits. outside, there were demonstrations against tuition cuts and fee increases. >> in barcelona, life and traditions go on, like they have done for years. this is despite this crisis. in this working-class suburb, the unemployed are everywhere. 44-year-old francisco lost his job a year ago. he, like others you speak to here, simply cannot find a new job. there are not any, he says. today, a stone's throw away, the banking bosses met. at a meeting long-planned but held amid tight security. there is anger towards the banks for their role in spain's economic crisis. the idea of taking an ecb meeting and out of frankfurt to a conference center and some are like barcelona is to provide accountability. -- out of frankfurt to a conference center in somewhere like barcelona is to provide accountability. security has kept people at arm's length. after their meeting, the european central banks loss erased the reform taken by countries like spain. bossropean central bank's praised the reform taken by

ecb not likely to put up interest rates today? >> that's right. twice a year the ec council meets in a city outside frankfurt. today it is topical, given all the information we have seen on unemployment figures. the country is struggling. we'd have mentioned the interest rate of 1%. not expected to see any change. another area where we don't expect to see changes on bond buying. that is something the spanish government in particular would like to see a the ecb jump back into because they have had to pay extremely high interest rates. if the ecb were seen to be buying bonds, that would bring down interest rate. in has in the past, but it has gone back up again after a few days. >> samsung is launching a new smartphone today. they are a big rival to apple. >> that's right. samsung has overtaken nokia as the best selling mobile phone maker. a lot this evening in london. we expect the new hansa to be the official telephone of the olympics. that's why it's happening in london. -- the new handset. >> you will tell me next time how you have an official p

the ecb hasn't been buying any eurobonds for the last ten weeks. >> should the ecb buy more spanish debt? should greece leave the euro? if you want to join the conversation here on worldwide exchange, get in touch with us, contact us by e-mail worldwide@cnbc.com. reach us directly at kelly underscore evans. >> plenty more to come. >>> the polls in the first democratic presidential election in 60 years. we'll be in cairo when we come back. ♪ ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't taste gluten free. together, the elements of science and the human element can solve anything. solutionism. the new optimism. >>> well, we'll get out to egypt in a second. just to point out the moves in the currency market this morning. that's a fresh four-month low. sterling/dollar down to 1.3713. dollar/swiss franc. the dollar index at a 20-month high as a result. and everything else, apart is down against it. >> and we want to men

we'll have to step up with ecb bond purchases. and we'll have to take major steps towards a longer term fiscal union. the question will be, do they step up in time? that could put us in the worst case scenario. but i think still at the moment most likely we'll avoid that. >> all right. we'll end on that slightly optimistic note. nigel, thank you so much. currencies of course are a core part of this story. after all, it is the survival of the euro that is in question. here's where the dollar stands against the euro right now. we've been seeing the dollar -- the euro fall all of this week. if you look at the month-long chart, you'll see the effect. it is down more than 5%. $1.2510 right now moving lower and lower throughout the session. the dollar has really picked up strength. sue herera has more on the currency side of the story from the new york stock exchange. sue. >> michelle, indeed. there's a real push and pull going on right now in several key currencies. not only the dollar as you just mentioned, but also the swiss franc an

>> remember, the ecb is supplying the chairs. that's what it is doing. >> so we get endless chairs. >> so far. i must admit our friends at the bank are really unhappy about what is going on. looking back at history you just do not get this type of very substantial expansion in monetary base without ultimately triggering inflation. the only problem basically in forecasting this is it can go on for years. in the end it happens and changes at the most inconvenient time. i don't see essentially how we are going to get through the european situation at this stage because right at the moment they are caught in very deep dilemma where they are fully aware of the fact. the people at the european central bank, the treaty is a very clear cut vision of what that bank is supposed to do and not supposed to do. the language has got to get awfully fluid to reconcile what they are actually currently -- everyone is uncomfortable but they all have mr. prince's view of what can happen or hope. you know, everyone likes to say we should put off the a

what's going to come out of this ecb press conference tomorrow.so much what happens with the decision on rates, but really what they say there in terms of any fresh stimulus, that will have the most impact on gold in the session ahead. >> all right. thanks, sharon. >> sure. >> all right. even with sharon described interestingly enough stocks are down today, but overall the dow is at a four-year high. bob pisani joins us here on the nyse floor with yet another -- >> explain this. >> -- counterintuitive retailers you're focusing on. >> concern about pulling job forward with the warm weather. the same worry exists with the retailers right now. we're going to get retail sales for the month of april tomorrow. and a lot of people are saying it's going to be a mess. yet nobody told the stock market. this is a new high on the s&p retail index. a whole bunch of the names you know and love are all at new highs today. i think, again, a lot of the issues are that the numbers are not that bad. for example, american eagle had great numbers this morning. >> but

the greek political situation, a lot of withdrawals, that will at some stage reveal the hand of the ecb, european politicians, the greek public. so i think by two months time, we'll have more clarity so where europe is going. that will be much more volatile. and in terms of the contingency plans, i'm not sure as well as advances they should be, there's an element in this dry sis where a lot of the politicians are in denial about the seriousness of the problems. and also really the necessity to focus on the structure of the eurozone as a monetary system and whereas they seem to be focused on austerity, now they're slowly getting on to the growth debate which really they should have been having two or three years ago like the politicians in the states. >> how concerned are you about deposit flight? >> i think there's been a lot of alarmist reporting in the media and the more the media reports on that the more likely there is that people will go to banks and take deposits out. >> they're down 30% from their peak. so there is something happening here. >> there is something happening. and th

the e ecb can pull out the big bazooka. they print the stuff.hey have the massive capacity, but they rightly think that it's not their job to act in a fiscal capacity. they have been willing to do so only when nothing stood between us the disorderly collapse of a sovereign or a disorderly collapse of systemic reports of financial institution, or now it is exit. or indeed exit via contagion. let me focus on this last thing.

that forces the hand of the ecb to take action before 7%.on sooner rather than later. >> larry, thank you so much for your thoughts this morning. he can also be reached on twitter. >>> meanwhile, facebook inching every closer to it becoming a public company. let's get more with a reporter. sam, thanks so much for joining us. what's your view on the pop we might get? >> there's so much hype that i think it's possible we could see 15, 20% by the time trading is over by the end of the day. >> 15% to 20% sounds conservative frankly. you've covered this will space for years. put this feeling, this 2011 into con it text of what the internet dot com bubbles we used to see. >> part of the issue is that facebook size of the shareholder base is so large that i'm just not sure how much potential up side on a percentage basis there is. some people have speculate that had it could pop 50%. i think that's unlikely. i think something in the 20%, maybe 25% range is more likely. >> out of all the issues in terms of whether they can get people to click on the

my view is they need something like the noninflation, and their capacity of the ecb. but even then, just as there is now, there will be a loin that says, this limit, this ceiling, can be raised with, with unanimous consent of the government. and the liquidity facility. unsure ans fa s insurance facility. significant cross border insurance. and then it has to be associated with sovereign anti-structure mechanism, and the very part of the, off the -- off of the year's end. to deal with the future -- fiscal insolvency, which i think are, are likely to occur then you have 17, i think, going down to 16, and then, then, whatever -- coming in, 18. and soon -- you know, 26 countries. in the euro area. and throwing the uk out. then 27. with scotland in. and england out. that will all work. but -- so, the banking union, right, which is a single banking regulator, do away completely with -- with national banking sector. a single resolution, single resolution fund, as well. i think since there will be serious -- serious unsecured bank debt restructuring, both, subordinate and sen

i mean, the ecb in its autonomy has been able to find new techniques of intervention. so clearly, the governments of the e.u. has been improved by the greek crisis. now, hopefully one would like to see improvements in the governance of the e.u. without all times having a crisis a trigger. >> mario monti, pleasure to have you on, sir. >> thank you very much. >> up next many observers say the sanctions against iran are working, that the nation's economy is taking a beating. i will ask tehran's economics minister for his view on the situation. [ male announcer ] citi turns 200 this year. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ great! tyler here will show you everything. check out our new mobile app. now you can use your phone to scan your car's vin or take a picture of your license. i

there were hopes for a euro bond, backed by the ecb which would centralize the debt of all 17 countries in the eurozone. it did not happen. germany continues to resist that that helped bring the euro to a two-year low. europe drove the markets much of the week and there were several late-day turn arounds. dow down 200 points, but finished flat. more signs of recovery in the housing market. new housing sales increased 3.5%, while every region in the country improved except for the south. sales of previously owned homes rose 3.5%, to an annualized rate of 4.6 million. two earnings reports from technology land. dell missed earnings expectations, while hewlett-packard beat estimates. dell stock fell, hewlett went higher, from the facebook fiasco to burning words about greece. how do you protect your money in this environment? joining me now, larry adam of deutsche bank private wealth management and komalsri-kumar. sri, the last time we spoke, you said the debt crisis in greece would be resolved by mid year. where are you on that? what happens next in terms of this story playing out? >> i st

there had been hopes for a euro bond backed by the ecb which would centralize the debt of all 17 countries in the eurozone but that did not happen, germany continues to resist. that helped bring the euro near a two-year low. there were several late-day turnarounds for the market. the dow is down nearly 200 points wednesday but finished flat. more signs of recovery in the housing market. new home sales increased 3.33% in april. every region of the country inproved except for the south. >>> sales of previously owned homes were up as well rising 3.4% last month to 4.6 million. economists are looking for an annual rate of 6 million as a sign of a healthy market. >>> two earnings reports. dell missed earnings expectations while hewlett-packard beat estimates. dell stock fell, hewlett went higher. >> from the facebook fiasco to burning words about greece, how do you protect your money in this environment? larry adam is chief investment strad gist. also ka maul sri-kumar with tcm. great to have you on the program. >> good to be back. >> thanks for joining us. sri, you said the debt crisis in gree

i think that's next and the ecb will cause the markets to rally. >> let's move to the next trade. facebook moving to a public company. shares down nearly 20% and of the 17 tech companies it's the only one that has declined in the first week. are you a buyer of facebook shares and if not, why? >> i am underwater on those same shares and i'm waiting for the options to come out. i think there's going to be opportunity to do some hedging and recover some of the money that i'm out right now for facebook. i understand the whole story of facebook, the fact that it trades at these valuations, 2013 earnings. >> doc? >> i think people hit the nail on the head with the options next tuesday. when we come back after memorial day, the 29th, the options will be listed often facebook and based on what we saw so far, volatility would have been sky high. it would have been up over 100. now as the stock has stabilized, moving only like 2 or 3% a day, it will probably be somewhere in the mid-60s for a volatility which is still a rich premium for those who own the stock and would like to sell options

they can't borrow money from ecb. they can't fly out of the country.ence the banks. it's over. you don't have a treaty to throw them out. they undo themselves. >> okay. >> david roche. >> good stuff, yeah. >> thank you very much, sir. i want to remind you angela merkel and francois hollande. they're going to prevent joint proposals for growth. hollande told berlin all offers must be put on the table. >> translator: the method we agreed on is to bring all the ideas and proposals together and see how we can implement them legally. it's only once that this work is done they will be able to answer your questions. that our own silvia wadhwa will be sitting down with angela merkel, and we'll have that interview coming up in the show. >> i can't wait to hear what she has to say about what david first said. >>> they're prolonging greek credit growth is spiking cause for the eaa tracey challenge chang has said more. >> they issued for loans at all. it expends the country's growth and greece's concern over loan demand as well as a squeeze on deposits. some analy

ecb deciding not to do anything about the weakness, keeping steady on rates. the ftse 100 lower this morning by half a percentage point. rbs a standout gainer, 2.7% higher. rbs saying they are on a recovery path now, their first quarter operating profit coming in nicely above forecasts at 1.2 billion pound sterling. also hearing the uk have no desire to sell rbs at the current price. remember the government paid just shy of 50 pence per share. but they are on track to repay the bulk of the 75 billion it that the uk government inverted into the rbs. so a little bit of an outperformer in today's market trade. xetra dax lower by 0.6%. the cac off by 0.8% and the ib eventibex just regaining what it had lost. with the elections, it could get even more interesting next week. the ten year bund yielding 1.6%, so pushing a little bit higher. successful bond suctions yesterday, so wrapping up another week with a successful bond auction, so many saying the impact not being felt on the debt markets right how. the ten year spanish bond yielding 5.7% and in italy the yield

>> i think the ecb has demonstrated, tell me if you agree or disagree but they won't let the whole thingall into the abyss. so unfortunately, what we are looking at is a japan situation for more than a decade in europe as they slowly get their act together. >> why aren't we seeing more after sell off in the narkets today? >> there is nothing new here. i think you hit upon it, michelle. if the ecb is not committed to having this roll off a cliff, then this is a story that will keep peaking up over time. you will see the ten-year, yields on it fall. but ultimately, it is not a new story. nothing new here. and i think you're right. that what story was this morning, there is nothing new here. and all of the bad news on the jobs report was in the market on the u.s. >> so warren buffet, when he says now is a good time to buy -- >> he was going to buy today. >> with all due respect to mr. buffet, the master, i'm not so sure. and for those with long or short term -- >> not only is he buying green bananas, he is planting new banana trees. >> and you don't agree? >> listen, i think that ultimately

and will we get that firewall from the ecb?hat happens pra people need to prior to those elections where we could see them exit and all of this could become very rapid in its -- >> david, throughout this period, there's been an unreal nature of the housing crisis. there's too many homes. no one talks about how to deal with that part of the crisis. they just talk about how to sure up the banks and that has been a losing strategy. i know how big they are. maybe they need to be confident. >> maybe. but then you're asking where does money come from? but then you're talking about different countries. we talk about how the germans spend enormous amounts of money to bring back east germany. but that still was germany. it's a different construct to ask them to say the same thing about greece or spain or italy. they don't speak the same language. >> we're surrounded by some mad professors down here. >> you want to know what branding looks like. it's really a pharmaceutical company well-known here. and they're doing something today. pete

and there it's obviously a problem now where the ecb will have to step it in. >> saying the ecb willit's not just a discussion going on with my friend karl bass and a lot of people at the barefoot economic summit in 2010. not even last year in terms of how do you ring fence the deposit base in europe to prevent bank runs when greece has to exit. >> the ecb has to step in and provide fully liquidity. it's that simple. merkel will have to write a much bigger check. >> can merkel even survive? >> the answer is the christian socialists are now aligning with the french and saying we're going to get growth initiative, spending more money and try to force them to it write a bigger check. austerity is under attack, absolutely. soo we don't know whether the greece can form a government or not is key. >> but more important, the contagion debate is over. there is contagion. banks are enter linked all of them and they'll have to write a much bigger check. that's a simple fact. here it in the u.s., we are not unaffected by this. we're in correction territory in a number of major sectors. so if yo

. >> focus tomorrow morning, ecb. you've got to listen to what the ecb says. you want to hear in the post statement presser that they are incredibly dovish. >> cortez, yesterday were you long the market. where do you stand today given the disappointing adp report? does it change your opinion on the stock market? how are you setting up ahead of friday? >> i'll long on the market in things that aren't moving a whole lot today, pharmaceuticals -- pfizer, ppa. i'm long but in boring defensive type names. there is new news today that's tempering anybody's bullishness -- ha is europe. spain right now is trading to 8 1/2-year lows. >> look, we've known what the situation is in europe. yes, the economies are bad over there. the pmis over there today were especially bad. >> i think the pmi numbers are new news and the fact that yoeu currency is moving today. we're seeing a dig move downward today. there is a lot of rumors that the ecb at the highest levels -- i agree it is going to be very important to listen to them. there is a lot of rumors that at the highest levels

the ecb. >> okay. >> we need more action out of them. we can't have this go on until june 17th.t do it. the market has been orderly so far. i don't expect it to continue if we don't get some decisive action. >> the ecb will not listen to people like you. >> absolutely. >> the fed might, but the ecb -- >> angela merkel is very, very isolated right now up there in camp david. must be a lonely angela merkel up there. she's got the europeans basically -- >> talk to me about what's happening here. >> we're seeing terrible market action. yesterday wusz the culmination of a week and a half of bad trading. traders have been buying on dips for three years now. it's been successful. market drops 3%, 4%, you buy. in the last week and a half no buying as the european market closes, no 3:00 rallies. buyers have been stopping away and finally yesterday the volatility spiked up, the volume spiked up, trading action has been horrendous. >> absolutely. zynga is a classic example. facebook rallied, this sold off, sold off hard. we saw no bounce to it at all. >> so we are down i think 12 of the la

we have the ecb ready to lower rates. and we have the bank of china being stimulative.ave some very positive monetary policy going around the world. >> i suppose one other thing you don't have this summer that you had last summer was the looming threat of a debt crisis in the united states. >> exactly. nothing's happening in congress this summer. but what it does mean is later in the year we're going to have this fiscal cliff that everyone's talking about. that could create some angstlight later in the year. but i think after this pullback we're having, and it could be over in the next couple weeks, it could be pretty good sailing for the market near-term. >> so some of the high-flying headline stocks like apple have been hit. do you see this then as a chance to buy them cheap? >> what has had for apple since they hit over 600? they beat the number, right? this company is going to earn close to $50 a share this year. the stock's trading at 11 1/2 times earnings. but there's a lot of what we call weak holders. when a stock goes up 45% in one quarter, it means people are

so it means that the bricks for the firewall need to be produced in the ecb, right? and that actually means that under those circumstances, greece is going to leave, you have actually a much weaker euro than you might like to have, so, therefore, i dismiss all this course and saying, okay, you've cut the weakest link out and therefore the chain is getting stronger. it's not going to work like that. >> and citigroup this morning talking about greece potentially leaving in january says a greek exit if it happens whether not end the eurozone's crisis. >> ireland and portugal might follow. >> and china's factory growth has contracted it for the seventh straight month in may. it dippeded to 48.7 compared with april's final reading of 49.3. the drop sparking fresh fears of a hard landing in the world's second largest economy. hsbc says that's avoidable if beijing takes more aggressive easing measures. on wednesday, premiere wen says beijing will step up policy fine tuning to support growth. so hans, quick reaction from you here. should we expect the yuan to start moving th

obviously, the ecb standing pat at 1%.i, the president saying, it's not enough to change the baseline scenario which foresees a gradual recovery in the course of the year. let's hope. >> and on top of that, the u.s. data. ultimately, that is what's moved the european markets today. let's have a look at the three major indices, and you'll see exactly what i mean. we were going great guns at you in europe. the earnings were a key focus, actually heading higher during the course of the session. then, of course, whoa, there we go. and then we got the data that came out of the united states, and that's really what's moved us. the ism services sector, the idea that the united states might not generate the growth that everybody else was banking on in equity markets around the world, has actually hit us, or hit them very badly in europe today. those stocks that were doing well like bmw that earlier was up 3%, 4% in the wake of having a gang buster quarter in china. it's cut its gains. this food operator, half of its money coming f

the ecb has helped supply liquidity to european banks. i will be pursuing all of these elements at the council tonight and at the formal council in june, after which i would be making a statement to the house. growing our economies also means doing everything we can to get trade moving. at the end of the g8 meeting there was a serious discussion at the potential for an eu/u.s. trade deal. the eu and u.s. make up half of the world with's gdp. there's a huge amount of work to be done. this could have a positive impact on both sides of the atlantic. mr. speaker, the greatest risk facing the eurozone and the world economy is the situation in greece. the future of greece is for the greek people to determine, it is for them to decide what is best for their country. i don't believe we can afford to allow this issue to be endlessly fudged or put off. it should be a straightforward choice between staying in the eurozone with the responsibilities that entails or taking a different path. the eurozone needs to have contingency plans in place for both

try and convince them to give greece more money through the use of euro bonds or loans through the ecb. he calls the austerity measures barbaric and ineffective. >> we try to master us a tear tea measures because the future of europe is not austerity and i think the future is of this barbarian way that the greek people have gone the last few years. >> his profile has been the most popular article on the site for the past three days. you can read a lot more about his views, what he thinks should be done about banking, et cetera, on our website at cnbc.com. guys? >> thanks, michelle. see you later. >> i have a question for you. >> oh, yeah. >> can he have it both ways? i mean, if he wants to nullify the austerity plan, the bailout plan that's in place and not leave the euro, how does that work? >> how do you square that. yes. that's a very good question. a former finance minister thought he could dot same thing. alexis thinks that he can convince his european partners to change their ways. maybe because of what we have seen in the last week or so we have seen some softening, but to get a

there is a lot more than the ecb.at needs to be dealt by the politicians. >> okay. good to see you. have a great weekend. >> that's it for us. don't forget to tweet us. it's been quite the week for mark zuckerberg. the ipo, the marriage, the ipo controversy. the one thing that i remember most from this week is actually what? you tell us. our handle is at cnbcsquawkst. the answer after this. [ sighs ] cut!this. sorry to interrupt. when's the show? well, if we don't find an audience, all we'll ever do is rehearse. maybe you should try every door direct mail. just select the zip codes where you want your message to be seen. print it yourself or find a local partner. and you find the customers that matter most. brilliant! clifton, show us overjoyed. no! too much! jennessa? ahh! a round of applause! [ applause ] [ male announcer ] go online to reach every home, every address, every time with every door direct mail. in every way, shape, and form. it's my dream vehicle. on a day to day basis, i am not using gas. my round tri

the ecb holding a policy setting me meeting. expected to resist calls to restart it bond buying ram. we'll have a live report from europe. and back in the u.s., weekly jobless claims top the economic economiceconomic calend calendar. also today, will is data on q1 productivity and ism nonmanufacturing. the nation's retailers also will start reporting april sales. dos compan costco says comps rose by 4%. that was below estimates, though. and china and u.s. are holding an annual talk in beijing. among the headlines, tim geithner repeating calls for a stronger yuan. we'll have a live report from beijing in about 20 minutes. >>> and today's top corporate headline, carlisle raising a less than impressive $671 million. pricing at $22 per share, below its expected range. kayla tausche broke that story yesterday. oracle a bitter lawsuit over a micro processor. a judge refused to resolve the case for either side before trial. bp winning preliminary court approval of a $7.8 billion gulf spill settlement. it would resolve more than 100,000

. >> they're talking about 50 billion euros or something that the ecb would have to give up and say we'll they ever get that back. they're taking their time from the point where it would be a real concern and a huge blow up to we're kind of dealing with this. >> do you think the germans are sounding like they're ready to let greece go when you hear what they're saying? >> not necessarily. >> i saw a couple people say we could handle it, but i think -- nobody has benefited from this whole thing more than the germans. the greeks have had a pretty good time, too, but the germans -- >> even if positive carry on the bailout stuff. because if you look at what the bund is at and what they lent to greece when they do these loans, they actually have positive carry on that. >> let me tell you about oil which is back above 90. you think that maybe you'll see a trade in the 80s stick but it didn't. but gas was pretty cheap when i was coming in this morning. and then in the ten year -- >> $3.60 is cheap? >> gas coming down about half a cent a day over the last month. and it's expected to continue for

quite a few greek banks are not able to get fresh money from the e c b -- ecb because they do not have any guarantees to hand out to pcb. there are worries about spanish banking shares. they went down sharply. yields went up significantly. what -- -- a few investors fear spain might be in deep trouble. >> here is a look at the numbers for you now. we begin with frankfurt. they closed the day down 1.8%. across the atlantic in new york, the dow jones industrial trading in negative territory. the euro is trading for $1.27. another blow for opal in germany. general motors has announced it is moving production of its opal to germany. >> the u.s. carmaker announced it wants to invest $150 million in its british division. >> there are concerns about plant closures and heavy losses here in germany. >> workers can only hope their factories are not handed down a slippery slope toward complete closure. the astor was a high part of the output. there were job losses and plant closures. last year, opal posted a 600 million euros loss. the strategy is putting employees under enormous pressure. the wo