this is not only the ecb. this is the full picture you have to take into account. >> do you expect a strong signal from the ecb meeting today? >> he sent a very strong signal last week. as for today, we really don't know. >> along with everybody else. steffen, this was on the back of the earnings they put out this morning. how have those been received? >> very well. they are stronger than expected despite a 13% decline of the net profit in the second quarter. compared it was a good surprise. it has been impacted in the second quarter by the market volatility. they have a 24% decline of the second quarter. the ceo is confident for the rest of the year. believes that bnp pair bass will maintain a high level of profitability. >>> it was under the basil three new regulation rules. he indicated he wants to limit individual country sovereign debt exposure to a maximum of 12 billion euros. they have exposure to italy and soaring debt. the ceo believes that's the -- that's spain and talking about debt crisis. that spa

still to come reports that the ecb may have oversight over banks that received aid from the ecb bail out fund. we'll have details when we come back. >>> u.s. futures are indicating a slightly upstart for the open today. s&p called up around three points start the dow at 28, nasdaq up ten, european stocks are up between a third and three quarters of a percent right now. here in europe the european commission is planning to bring all eurozone banks under the control of the ecb. this is according to the newspaper in germany. cited the commission of michelle barnay. said the ebc would have oversight of all banks that tapped from january of next year and all remaining banks from 2014. at the same time the outgoing bank said the ecb will be absolutely right to cap bond yields. speaking on the sidelines of jackson hole, plosser reiterated comments he made on this show that ecb would be well within its mandate to act during times of trouble. here's a reminder of what he said this week. >> central bank's job in the ju eurozone just as every where is to stop the panic. buying and selling sover

. >> ecb present -- the speech by ecb president mario draghi disappoints markets. >> the song of followsladimir putin everywhere he goes in london. >> "it was impossible to do my job" -- the words of kofi annan today as he resigned as special envoy to syria. >> the peace plan looks more irrelevant than ever as fighting in syria shows no sign of ending. >> kofi annan appeared frustrated man today enplaned name-calling and finger-pointing at the security council for his decision -- and blamed name- calling and finger-pointing. >> after six months of disappointment and frustration, kofi annan is giving up on his mission impossible in syria. >> i have therefore informed the secretary general of deep un and the set -- of the un and the secretary-general today that i will not continue my mission. >> he blames divisions in the united nations security council and lack of international unity. >> without serious purposeful united and international pressure, it is impossible for me or anyone to compel the syrian government in the first place and also the opposition to take the steps necessary to be

investors plagued with caution ahead of the fed ecb meeting. weak pmi data out of china, key consumer as australia's resources hurt sentiment. farce off. kelly over to you. >>> an official at bank of england says economists are to blame for the recession. others say the country should be following economic principles like music like bruce springsteen. let e-mail us at worldwi worldwidworldwide worldwide @cnbc. >>> meanwhile, still to come, a new olympic record has been broken. michael fem has one more olympic lelgdzs than anyone in history. find out the latest from london 2012. [ male announcer ] this is the at&t network. in here, every powerful collaboration is backed by an equally powerful and secure cloud. that cloud is in the network, so it can deliver all the power of the network itself. bringing people together to develop the best ideas -- and providing the apps and computing power to make new ideas real. it's the cloud from at&t. with new ways to work together, business works better. ♪ >>> latest results from olympics. michael phelps put

ecb should look at sovereign debt. do quantitative easing but do it on the structural area that means to most. >> adam great to have you on today. we wish the best. when you come out come straight back. >> love to. >> we'll be more than willing to give you a voice. adam thank you so much for joining us. adam posen. in his last week at the bank of england. joining us exclusively here on "worldwide exchange" and cnbc. don't forget we'll cover the action from jackson hole here on cnbc. the national hurricane center says tropical storm isaac is on the verge of becoming a category 1 hurricane. it's expected to make landfall tonight. alex wallace joins us from the weather channel. >> we're watching this very closely. looks like at this point as you mentioned may get up to that category 1 status as it makes its way towards landfall later tonight along the gulf coast. right now what it's looking like, not much change. national hurricane center iraq its advisory. 70 miles per hour, just shy of category 1 status which is 75 mile

effects of the ecb. they'll let them go for, see what happens with the market, see thefire power draghi can muster to the markets, and then we have the unemployment report on friday, and china last night had a terrible pmi, but there are rumors that china will ease, the bank of japan obviously full pedal to the metal. you will have to fight all of the central banks. >> do you think we'll get real action from the ecb john, is that enough in your view? >> the ecb has not dun enough thus far, the numbers out of europe are terrible. most of them lagged pretty significantly. we're probably going to have a spanish unemployment report that will be very poor. i think monte is doing all he can to put together a coalition against germany who still, has an ideology that they're still worried about inflation, they should worry about deflation. that's the problem in europe. >> bob turner with this all on the horizon, these meetings, and the economy that has weakened in the last couple months, how do you want to be in

the ecb is meeting in frankfurt today. last week mario draghi promised to do whatever it takes to save the euro. he said it could result in the market punishing the euro zone. this is the big news of the morning. we get it at 7:45. later in the 8:00 hour is actual comments. this is huge today. among the news being reconsidered, reactivating the bond buying program for spain and italy in tandem with the euro zone rescue funds. we will bring you that decision at 7:45 eastern time. the highlights of draghi's news conference at 8:30. the bank of england is meeting today. policy makers will stick with the current stimulus plan for now while assessing the impacts of other recent actions. they say more stimulus later this year seems like a done deal. on the u.s. economic agenda this morning, weekly jobless claims for the market. we get fashgta afactory orders. they rose to 370,000. right now let's get more on the morning's corporate buzz and for that back over to andrew. >> the nation's resalers report sales today. costco was one

helped by rto and talk of ecb support.you compare of france with netherlands one of the eurozone's remaining aaas. you can see the stock yield compression. if we had that chart you would see a much greater yield compression. basically means aaa, i think as we already knew kelly doesn't mean an awful lot in terms of yield performance. >> we might have suspected that one. in any case you're watching "worldwide exchange" the you're just watching us this morning these are your headlines. german politicians said no more concessions for greece. the ecb reportedly considering setting a trigger for sovereign bond purchases. lonmin said 27% workers have returned to the mine in south africa. >>> and an inquiry by british lawmakers into the libor scandal says barclays had poor compliance. done great damage to britain's reputation. it claims bob diamond was highly selective in the evidence he gave. bob diamond was disappointed by the findings and disagreed with number of select committee's comments. deutsche bank is the latest lender

as far as the ecb goes, i think they're hands are still tied. whole mechanism works, there are too many moving parts and pieces right now, they're still putting a squalsh on it. >> and the people in germany do not want the bailout, and some nations are not following the austerity rules. but i think for the ecb to come up and say we're going to do whatever this takes, why even set up situation u such expectations. >> you want a job to some degree. you want to reassure your shareholders, and i think mario draghi, to some degree, he wants to reassure the markets that they will do whatever it takes, but his hands are tied to some degree right now. >> the fed is waiting on jobs numbers, 100,000 new jobs created is the expectation. do you think we see action in september? it's hard to believe the fed, i believed it was wednesday -- >> it remains to be seen the condition of the market or the economy at that time, but i don't think the fed will do much. >> closing countdown after this break. >>> and the heavy hitter wills chime in on what's happening. m

the ecb has been steepening it. who is right?> in europe you have to steepen the yield curve to help out the banks. the problem is it doesn't help. steepening the yield curve helps the banks with new assets. doesn't help with old assets. the banks shaf legacy assets. it's a balance sheet issue. in the u.s. things are so much more positive. we're not at the end of the tunnel but we can see the end of the tunnel in the u.s. and now have the authorities talking about big legal actions because the sector now can with stand that criticism. >> how far into the tunnel are we in europe? >> not far enough. >> quarter of the way? >> at the moment big european banks, cumulative loan loss provisions since the crisis began in summer of '07 are sub 4% of peak loan assets. money in u.s. 12%. one-third of the way to the same spot that the u.s. banks earlier. >> good. a 36% drop in profit for axa. speaking earlier to cnbc the chief executive was happy with the results. >> we think it's a solid set of results in an environment which is not easy fo

some hope is began after a lack of action by the ecb pretty much disappointing the markets. ai? >> and ramin, as you just mentioned, all of the focus on u.s. jobs numbers out later today, following the ecb and fed policy meetings later tho week, so what is expected for jobs? >> yeah a lot of focus on jobs. of course the central banks are out of way and key earnings. though another big one coming up. but should the jobs numbers come out as a shock perp markets may expect the fed to come in with an emergency mood ahead of its september meeting. but the other focus here in japan, toyota will come out with earnings numbers after the bell today. so that will be a big focus as well. ai, back to you. >> tnks for that, ramin. both the nikkei and topix down by 1%. >>> now, rami, people at toyota motor, plan it roll more vehicles this year than ever made in the company's history. they will produce more than 10 million units by the end of 2012. the group includes daihatsu motor and hino motors. the figure will be more than 2 million higher than last year's pro dukes of 7.8 million vehicles

ecb doesn't have that credibility. if it were to step in and say it's a limit that we won't september between certain sovereign bonds, it could go a long way. >> that would be the most powerful i think. >> the stock market is holding up here, i thought the market would have just tanked on the fed not doing anything at all. steve eluded the fact of a possibility of an intermediate move seems to be the preoccupying -- >> the wait and see continues. don't you think we're now waiting for what happens tomorrow? >> yes, and then friday with the unemployment. >> and i want to point out that we had this right and other media had it wrong. >> i would like to bring up one point, we see the dollar getting very strong. >> it's probably a lot of uncertainty. this market is not sure how to read this lack of action today from the fed ahead of a very important meeting tomorrow, so we're back and forth here. >> i don't think anybody expected much today. rick, what is the floor expecting tomorrow do you think? >> i think it's changed dr

ecb to the governments in a roundabout way. the ecb has as much power to burn as much money as it once but not the reserve to back it up. germany has warned against the option, saying it will lead to inflation and an even more serious crisis. -- the ecb has the power to furnish as much money as it wants. >> tell us a little bit more about the arguments why, and do you think something may reverse course on it? >> this is not a new idea. it was promoted a year ago by france. at the time, there was opposition to it not just from the german government, but from most european governments, but, of course, the crisis was not as deep then as it is now. the main opposition to it is threefold -- first, it is not covered by the existing treaties. secondly, it would certainly compromise the independence of the european central bank. thirdly, there are concerns that simply printing money would discourage debtor nations from implementing reform, as happened in 2010, after a major bond purchase of italian bonds. italy simply abandoned its ref

and the ecb has not dot that mandate.l-out funds, but it does not have what is actually required. going back to what you say about it has laid out a plan, but that's the problem. why hasn't he laid out today that it's happening? that is the point. you know this has been going on for years. why is the ecb not saying this is the plan, this is going to happen? >> because the politicians have to ask for help first to keep the germans on board. >> i disagree with everything. >> we're getting shouted at repeatedly. it's always a great conversation. thank you, guys, thank you. >> up next on the program, can microsoft's new look take down the email giant that is gmail? our tech experts weigh in. after the break. ttd#: 1-800-345-2550 ttd#: 1-800-345-2550 let's talk about market volatility. ttd#: 1-800-345-2550 in times like these, it can be tough to know which ttd#: 1-800-345-2550 way the wind is blowing. ttd#: 1-800-345-2550 at charles schwab, we're ready with objective insights about ttd#: 1-800-345-2550 the present market and e

all talk and nor action from ecb president, mario draghi. who says he's ready to do a lot more, but offered no immediate steps to stem the debt crisis. we're at the market lows of the day. there's the nasdaq, a a loss of .65%. the s&p 500 off by more than 1% and the dow industrials off by more than 1%. the euro as well, it was higher. not any more. reversed. and the ten-year has reversed as well. yields initially surging, now lower on the day. cnbc's steve liesman joins us to discuss all of these stories. stephanie, how are you trading it? the fed is not coming to the rescue, neither is the ecb. >> for now. but i would say that expectations are very high. markets have rallied 2.5% since draghi spoke last week. we didn't get nearly the level of detail we wanted. but i think we got a couple of nuggets that you can point to in terms of the short end, in terms of the size, they note that size matters, i think that we've been picking at symptoms that have gotten hit today. again we're kind of doing the diversified approach. we're buying a little

market expectation have grown around ecb action, dealing with continued problems of greece and spain.ght now, investors are waiting, hoping the ecb will follow through, but not at all certain. adam: all right. let's talk about the ecb because as our vacation begins for a long holiday the europeans are coming off holiday. already report that is the ecb is being pushed to do more in terms of regulating the thousands of banks in europe. maybe even buying spanish italian debt. what do you see coming down the pike, either from the ecb or the eurozone, that gets us past this continuing crisis that keeps rearing its head every few months? >> well, i think the ecb is likely to announce a fairly well-articulated plan next week for buying sovereigns under certain conditions. and i think that the eyes are on spain. if spain signs up for memorandum of understanding about its program with brussels, and i think it is likely to do so even though there are continues to be political reluctance, then he think will enable the ecb to move behind that and begin a program of buying spanish bonds. this is l

>> more to do with the ecb and eurozone economic activity.eat to see the s&p earnings, profits are beating expectations by 4%, revenues are on the upside. again, that's based largely upon the premise that the fed continues to add stimulus which i expect in september. forward looking, much of the eurozone's problems may have been taken care of by draghi's actions last week but looks positive at this point. >> brent up over 108. if we get morphed stimulus will gold weaken. will other commodities get more of a boost. >> on the metal side it would have to do that but we're starting to see assimilation. gold at 1600 looks tired which to me is just opposite of what you mentioned. right now not very bullish on the metal side. >> mike despite people saying at this point we priced in a lot of the bad news. it get easier to beat expectations from here? >> again, it's all about athletics at this point. that's why pricing and any bad news can get worse. you're inside 100 days still on that. the uncertainty alone is one of the reasons why you're starting

he's saying the ecb will do what is necessary.will do what's independent, act within their mandate. essentially sometimes the situation demands they take extraordinary measures. it says strong decisions have to be made to manage the euro and still says germany needs to remain anchor of strong euro. so, single monetary policy may require exceptional measures as i say. that is the background as italian prime minister mario monti arrives in berlin for talks with angela merkel. part of the merry-go-round of meetings as european leaders work to forge tighter economic policy. sylvia, i'll see what you think of these comments from draghi in this interview. political union can and shall develop from parallel with fiscal and financial union. strong decisions have to be made to manage the euro. also repeating their independence. those comment he's talking about in terms of unions, political unions, how does that marry with the sense of what's happening in berlin and how they see those steps being taken? >> first of all, i think angela merke

from buying of bonds, but monti is still hopeful that the ecb will change tack after its meeting onhursday. >> let's pull in our european affairs correspondent. mario monti on tour about how to solve the euro crisis. and yes, and it became obvious at the last summit in brussels where finland already positioned itself as a hard-liner country. germany is very much in the spotlight, but germany is the bigger economy as well, and people are looking to germany more than they are and looking to finland. what mario monti is likely to achieve is that it will increase awareness for the country's with increased difficulty for the country but would not change politicians' minds in the north, especially when it comes to a strict no regarding the banking license for the eosin. >> it is also amazing to see this public lobbying going on now among eurozone leaders. how did you see this playing out? >> that will just depend on how sustainable the situation is when it comes to borrowing costs. italy and spain is costs are soaring. other countries are experiencing even negative rates, and this phenome

markets fell after european stocks tumbled as the ecb failed to come up with

the ecb will do what the ecb will do.ght be -- might be -- resigning is an indication, "a," that he's losing the battle within the ecb to stop the bond buying. and if you're an american investor, you really simply want the contagion stopped and the bond buying from the ecb. the other thing that this is important is because it is reported in one of the italian newspapers that angela merkel to try to stem the conflict within germany is asking italy and explain to delay their micti application for aid which would trigger the bond buying further down the line. you have to have the application for the bailout from the italians and the spanish in order to trigger the bond buying from the ecb further down the line. they've made that very clear, so this is a process, carl, it is not going to end now. i want to show you one last thing which is potentially concerning. this week spanish yields have blown out. and on this news i don't know when if it's because of the bad banks being announced in madrid, but you can see all the delay,

also look for ecb and the market reaction to the ecb next week.nk that weighs on fed policy, even though i've asked everyone and they say it hasn't. i think if the ecb does more and the markets like what they hear from the ecb, the fed can do less and i think the reverse is also true. >> i got to imagine global economy, those things are connected. all right, steve, thank you so much. see you later on today. pete, how would you trade today? >> i'm always looking for opportunities and i think the opportunity has been listening to everybody who has been talking about being short the market at 1,300 and 1350 and 1400, it seems like we're consolidating well, and when you look at the volatility index, we're up since august 3rd about 15% on the volatility index and off the lows, but if you look at the 52 week we're near the lows of the volatility index. that's telling me that right now you can still get the protection and that's why i think you're stopping. every time we tell down, we hit 1400 and that's the support and there's still potentially much mor

and so it probably is the best way, best strategy for the ecb is to have implicit targets, the ecb will not reveal to investors, but they will manage the situation to avoid some spikes in interest rates and in spain and in that case they could succeed, but it's a complicated story, they have to convince investors and they have to be with governments not against governments in the institution, so very tough for the ecb in the coming months. >> philip, thank you very much for coming. >>> so let's talk about samsung. the damage to samsung electronics is obvious. shares suffered their worst single day drop in about four years after a u.s. court on friday delivered apple a decisive win on its patent infringement battle. follow me @beckymeehan. was it fair that the outcome of this particular battle, i'm sure plenty more to come. we'll get your comments later in the show. first of all, let's head out to seoul for more detail. interesting to hear what our viewers have to say about this. sketch out the details for us first. >> reporter: becky, the national bellwether was a 17% weighting on the o

. >> is it about what the ecb plans? is it much more about the conditions, conditionality, the memorandum of understanding that's attached. >> i think also that spain is starting from a different position compared to the smaller bailout countries. spain has done quite a bit in a number of areas. the extent of the conditions are basically something like becoming more specific, what's already been agreed and something more but not a lot more. i think it's possible that the spanish would apply for that. >> how important is this issue of seniority? >> it's important. in the end it's also possible that every thinking of the ecb stands on a particular matter is important. but when it comes to official lenders, basically this issue will never go away completely. what we learned is the same piece of paper can have a different degree of seniority, think of the ecb and greek debt restructuring. it's important to clarify that at least in principle. >> good to have you on. time to check in on what's going on with the markets today.

it's a big disappointment from the ecb. he spoke boldly last week of doing whatever it takes to save the euro. he delivered weakly today. instead of massive, it's maybes. ecb may undertake sizable purchases of short-term bonds. the mechanism developed in next several weeks. purchases tied to rescue fund conditionality. that's a key for the market and the ecb may drop demand for seniority. in addition, draghi made clear the germans don't like the idea much and unclear how much of a setback that's going to be. the bigger setback could be spain and any other country has to ask for a rescue before ecb will act. the international monetary fund did not mince words in a statement criticizing the conditionality here. i quote, further monetary easing would unconventional support would ease tensions. the potential positive which is what sue was talking about is the ecb action alongside the rescue fund could be powerful in bringing down rates. the hint of action could bring the rates down. the trouble is that rates are spiking now. th

the ecb head is feeding speculation that it could be moving in this direction. in an op-ed in a german newspaper, draghi said the bank might have to resort to exceptional measures. his comments countered criticism from the bankhead who said this week, "we should not underestimate the danger that central financing can be as addictive as a drug." germany fears a return of a bond-buying program would not only risk a return of inflation but also decrease the pressure on debtor countries to reform. >> eurozone countries were also the topic of conversation for traders in frankfurt on wednesday. our market correspondent has more from the frankfurt stock exchange. >> italy is playing a big role on the sovereign debt market this week. this wednesday again, the italian ministry of finance auctioned off new government bills, and these carried a lower interest rate than previous editions of such bills. on the stock market this wednesday, some turnaround happened in afternoon trading thanks to positive growth data from the united states, but the overall move on the trading f

the fed and the ecb -- >> scary.g -- all right, i started, the fed and the ecb putting any potential economy-boosting moves on hold and ecb chief mario draghi is standing pat on his promise to keep the eurozone in tack. joining us is norm orenstein, author of the best selling book "it's even worse than it looks" and guest host diane swonk is here. before i get to you, norm, liesman has never had a funny joke, economics joke but said a snail was mugged by a turtle and the police asked the snail what happened and the snail said, i'm not really sure, it all happened so fast, that's what he's saying about what's going on -- >> in congress. >> in europe. can these -- was it disappointing what we got from draghi yesterday or was it sort of about as quickly as a snail is able to move? >> i was also in europe this week and the europeans are not nearly as pessimistic as we are about it but certainly if i were in the obama white house i would have preferred something a little bit more decisive. what draghi does at this point a

the ecb is in a much more dire situation. spain and italy both have a lot of debt this year that they need to roll over, and there's not many investors stepping up to buy that, so the ecb is more dire and likely to act sooner. let's be certain f. we is sx*bl two percent gdp, it is fed is not going to sit on his hands and do nothing. >> susie: let me ask you -- there's a lot of market guests on the program and they point to housing numbers, for example. housing is making a recovery, we just talk body that at the top of the show. and corporate profits coming in better than expected. they talk about fed action. now none of that resonates with you. you're still scaped toing on a pullback. >> our year end target for s&p 500 is 1400 to 1450, and we're at the bottom range of that target. and i'm confident in that year end target. i just think we came to this level too fast because of anticipated action by central bank that's probably further out than what the market thinks. >> susie: 20 seconds left. talk to us about investor confid

this sale comes after madrid called on more forceful action from the ecb to buy sovereign debt. we've seen declines in spanish yields over the last week or so. today, yields averaging 6.3%. two year eelz at 3.6. and five year government bond at 5.47% at the moment. spain is waiting to turn its bad bank into an investment fund. madrid will present the idea on friday, it unveils an overhaul of its banking sector. it would not be subject to national accounting principles. >> interesting. a decision has not been taken on the eurozone bond buying plan and it's misleading to report otherwise. that's the warning from the european central bank reacting to a weekend report. that report said the central bank was considering a bond yield cap for the region's troubled economies at which point it would step in and buy unlimited bonds. our next guest thinks europe is stuck in a no growth trap, partially because of all the uncertainty surrounding policy action. joining us now is senior economist at morgan stanley. thank you for joining us this morning. let's start with this back and forth from

patient, bank net for the ecb borrowing. continues to creep high in july. 337 in june. joining us now is chairman of sachto capital markets. and welcome to you. let's kick off with philip. i heard a phrase. this isn't a growth probm. although it is obviously a growth problem. this is a confidence problem. there isn't enough confidence for firms to invest. how much do you agree with that? >> well, we have a lot of issues when you look at the growth, the growth figures in france. we have a real growth issue, we have very low internal demand and we have a confidence problem. we don't know exactly where we're going to, not specifically in france, but in the euro area. we don't know exactly what will be the exact framework for the euro for there now to the next two years. we know that consumers and companies are waiting before investing, before consuming and that's what characterizes the french economy. this means we are very dependent on external side, and as it was said, exports were weak this quarter, and the only driver, exce

not one ecb meeting is going to soflt the problem. however, mario dragly said we will do what it takes. i don't know what that means, but i think bold measures need to come from the ecb soon like buying bonds from spain and italy. >> what should they do. stocks, bonds or cash? >> diversification makes sense. that doesn't mean all cash. it means you need to own some equities. >> and stock markets, despite the consternation is up 10% this year, and we're only in the seventh month. i think equities need to be owned. >> all good things. senior adviser at black rock. >> tom: power is slowly returning to the half of india that lost electricity this week. the power grid took a second hit in as many days. >> grids that supply electricity to 700 million people collapsed. trapping coal miners and bringing the country to a standstill. india's energy minister blamed it on the overburdened grid. they suffered a peak power deficit that has been hurting economy. power shortages have been a drag on india's efforts to industrialized. the global recess

conditionality is the strings or conditions attached by the ecb on spain if it is to buy its bonds on an open-ended basis. spanish and italians may have to bear their pride and formally apply for a bailout from the esm and esfs. if the very future of the currency is called into doubt, then the germans may allow the ecb to do whatever, and we mean whatever, is necessary to save the single currency. >> the talk of major intervention has already stopped the slide in the euro against most major currencies and dramatically lowered italian and spanish borrowing costs, down 11% and 17% respectively over the past month. if markets, taxpayers, politicians, and the weather were to line up correctly, could we ever arrive at utopia? >> we could see them buy enough time to slowly and incrementally and very deliberately move towards a fiscal and banking and political union, but unless we eventually get to either debt mutual is asian or debt modernization or both, i do not think we will see an equilibrium in the common currency area. >> for now, the eurozone remains a top issue, but as citizens did

ecb, saving greek from bankruptcy. policymakers agreed to increase the upper limit for the amount of greek short term loans that the bank of greece can accept in exchange for emergency loans. wall street banks preparing for potential euro exit. got contingency plans. the firms are telling counter parties and borrowers to restructure contracts or fine another bank. regulatory filings show several banks have reduced their expos our to the why are you. we do have kind of a romance. did you see some of people we have? >> is it kind of a bromance? >> threesome. >> herald ford jr. coming on. >> will be with us for two hours. >> a lot of people think he's very charismatic. we have mike, jim o'neal. not just us. i want to ask you something. >> yes, sir. >> can we talk about the olympics? did you see anything? >> yes, i saw mr. phelps. >> you saw phelps with bob costas. good interview. >> i thought it was great. what's his final number? >> a lot. >> a lot. >> i just have a couple of other comes. misty may trainer, did you see t

ecb meeting september 6th. it meant there was so much speculation about what he would or wouldn't say. you have to wonder if the ecb finally didn't say, look, let's try to get ahead of this and quell it. people are saying what does it mean they're doing right now? >> paul vigno at the journal this morning tweet third-degred tea leaf reader's dream. what could be so important you'd cancel this late in the game? we've known the schedule for a while. it's hard to imagine he was somehow surprised. the question will be and i'm sure the question in europe is, is there something brewing we don't know about? >> i will say it does seem as though people in the market for the most part have dialed back expectations of what to expect from bernanke and what, if anything, they would hear from draghi. perhaps some of the headline risk has been taken out of this weekend. at the same time it seems likely no major, big initiatives are going to be announced on either side of the atlantic. >> meanwhile people are going to start fo

if the ecb does some good work. wasn't that long ago in the first quarter people worried of 3% yields and now talking 1 to 150 in perpetuity. >> the federal committee kept the rate at 0 to a quarter percent and anticipates that economic conditions are likely to warrant low levels so the fed funds rate at least through late 2014. committee decided to continue through the end of the year the program to extend the maturity of holdings and securities announced in june maintaining the existing policy of reinvesting principle payments from the holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities. the committee will closely monitor incoming data and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in the labor markets in a context of price stability. since the open market committee last met, suggests economic activity decelerated. growth and employment is slow. unemployment rate is elevated. business investment co

the ecb has been left with the short end of the stick many times because the ecb, many argue, is the only institution that really functions in the ouour eurozone, so they have to step out of their way, buy eurobonds. they come into deep space. we had covered bond purchasing program. they had to lower collateral. has the ecb been pushed in a corner where it actually overstepped what it should do? >> this is indeed very dangerous. on the one hand, the ecb is seen as the most powerful institution, the only institution which really can act, can act any time, and has the power, the money, the big bazooka or whatever you would call it. and this is at the same time weakening the position of the ecb over time, and i think it is a mistake if the ecb accepts this position as being the final savior of the euro area. this is a wrong impression, and i think the ecb should do everything to avoid that. >> not often you hear an economist, ross, saying shut up, but that's otmar issing for you. >> yeah, it's impossible, impossible. there's too many different constituent parts, right in europe for them

if ecb comes with all in like the fed has done, it's weakening. >> less ecb action or more action?> calm before the storm just because everybody is away? >> that would be my view. >> i would.out more ecb action priced in by the market the last couple of days has caused the euro the rise in value. >> sometimes the euro is the risk on asset. but certainly a currency can get, you know, diluted by central bank action. the ebc will have to do so much for this long that ultimately if they are to save the euro it's about pushing it lower. >> judge, you're on your own. >> give us the view on gold. how the central bank talk factors into where gold goes from here? >> gold is building a base. it got tired for a while. the expectation was for even more central bank action to drive it higher. you know, i think there's a misunderstanding how gold works. it tends to not do well when the dollar rallies. people say it's a hedge against stock market turbulence. we don't think that. we think gold will go down if the market rallies. if the fed comes back with a very, very strong statement it certainly

this means the ecb, will they put out that bazooka. whatever it takes per what ecb means and investors mean, this will all set investors up for disappointment, and this reversal back down. >> dan, you're a little more concerned, but by years end you see the market higher, yes? >> yes, i still think we'll meet our target which is about 1450. i think we'll see that in the fourth quarter. we have been in the sprint for the last three months. we're getting a little winded. and the vaelt we're dealing with a race with only half of the competitors in it. the real test will come after labor day to see if we can break above this and frankly it's an evaluation game. this mark is between a 12.5 and a 14 pe for the last three years. we're bumping up against is and i don't know if we have the earnings power near term to get past some of these items. >> ron, you're still looking at cash levels, that's certainly a positive for the market. >> yeah, we'll always be vulnerable. we had a 9.9% correction back in may, we rallied 11% in six weeks. a 50 poi

the ecb is ready to do whatever it takes to preserve the euro. believe me, it will be enough. >> investors were thrilled to hear him say that. after the policy today, there were hoping to find out more. >> with mario draghi having said that european central bank will do whatever it takes, whatever it takes is some definitive solution. >> at 12:45 we have a statement from the ecb saying that interest rates were unchanged. it was time for the man himself. >> the governing council might undertake out right operations of a size adequate to reach its objective. >> is willing to help push down the cost of borrowing for countries like spain but spain must ask for support from the european rescue firm first. >> several times >> ecb cannot replace governments. >> when the text was digested, the hero comes down on the pressure and the yields on italy and spain start to rise. it does appear that the markets are still quite concerned about what this will mean. there is a little bit of disappointment. >> the financial markets heard what they needed to hear fr