and the main component is the success of the ecb. apparently draghi's words are more convincing, more credible than we all thought when he mentioned them for the first time in last year in the summer and even when we saw the details of the omt program because at that point, a lot of people still were thinking that the ecb had to show its cards before the market would be comforted. and so far, they have not been forced to do so. and still it continues to be a very powerful force despite all this political uncertainty in europe that has reemerged. so i think that is really the major driver. although probably in the back drop also recovery in the global economy plays a role. but given the recent signs of weakness in europe, that strength is clearly coming down. >> hello. i agree with you just one data point which i found interesting. if you look at the holding of spanish bond by spanish bank, it will be going down since march last year, which was is a surprise for me. that means the issuance in spain is not bought by spanish bank, but b

particularly the ecb. if they cut rates, they're going to have potentially a much greater impact than equities. i think that has probably a greater influence than sell in may and come away. >> thank you so much. we'll come back to you in a few moments. >> we're an hour and 20 minutes into the trading day here. around about 7 to 2 advancers outpacing decliners. down at the session low at the moment. the ftse 100 up around 2.2%. we had the dow jones up 11.1%. the ftse 1100 today, ftse absolutely flat. the xetra dax up 0.6%. the ibex is up 1.2%. the ftse has been a real underperformer this year, up 1.5%, outperforming today on the back of the government being put in place. a couple of stocks worth looking at today, asset solutions seen its shares down quite a lot. 21% plunging after the norwegian company says it's incurred losses at two of its major divisions. it's suffered increased costs at one of its north sea operations. stock boosted by a reported jump in first half revenues. the company announced an inc

it is kind of in the water with the ecb. even though there are is people of all nationalities working there, it is the approach that we need to focus on stable prices and everything else will take care of itself. >> host: it is bizarre that he raised interest rates during the crisis of. >> guest: and a couple of junctures' this seemed like mistakes in hindsight. some of 2008 which was like before the entire world collapsed. then again in the spring in the summer of 2011 which was just as we entered the doctor's face of the european crisis and the rest of europe falling apart. it to fall into recession. we came to the very brink of some very nasty things in europe. the b-1 what kind of grade you think he would get? >> guest: he gets hello be. he was unable to do something that his successor has been able to. i take that back. i would bring the first down to a seat. on the one hand, he was able to corral the ecb to do some things that were very uncomfortable for that organization. in may 2010 he went into bond markets to try a

the ecb, earnings from heavy hitters in tech, autos and drugs. >> you heard it here first.ported this on friday, jc penney this morning saying it has a commitment from goldman sachs to borrow $1.75 billion in the bond market. the executive jumble at j.p. morgan continues with the coo. >>, they're returning to passenger service. >> we have a barrage of economic data, the central banks in the spotlight and the thursday's the day for the ecb, will they cut rates? of course, the busy earnings calendar continues. facebook, pfizer, gm all set to report later in the week. we are going move from this macro to micropicture which has not been as positive as some would leak. >> true. this is a fulcrumec week. the ability to be able to turn this market in either direction can be -- can be on the line this week. i have to tell you that the vibes out of europe are about trying to get growth again and all of the vibes out of the united states have been how to resurrect growth. europe is causing a slowdown. i think that when you see the iceland government that got them in trouble back. whe

much in the markets has to do about an ecb rate cut.a merkel has suggesting to a banking conch ecb is in a difficult situation. she said theecb probably should increase rates for germany, but needs to do more to be available for business necessary other states. people might be making too much of the extend to which she was making that kind of statement. nevertheless, karen caught up with the former executive board member at the ecb in an exclusive sit down. she asked him if, in his opinion, the u.s. does need to kick start growth. >> if you take asia, the u.s., europe, europe is in a weaker spot. so one would expect the euro to be weaker than the others. that's not what we're seeing. we're seeing voices which are very aggressive in other parts of the world compare to europe. europe has to react to that president. >> wouldn't an interest rate reduction makes a difference to europe? >> well, it would not be counterproductive, certainly. so i don't think it would hurt. that might be a first step for trying to align conditions for what is h

. >> the ecb meets thursday. mario draghi after winning is coming in and helping government bond yields by saying he'll do whatever it takes last year has kind of been out of the picture lately. is it becoming more urgent for the european central bank, just forgetting everything across the eurozone to ease for the sake of the weak.ing outlook here? >> i don't think there is very much the european central bank can do. cutting interest rates would not make a huge difference. the problem of fate has very little to do with ecb rates at 0.75 being too high and an extremely low rate. the problem is the transmission of monetary policy to householdes and companies. >> yeah. no spanish companies are borrowing at 0.75%. >> exactly. reducing that rate wouldn't really help them very much. what we need much more are a signal or signals of confidence that spain, that other countries would stay the course. if the confidence in the future of spain and italy rebounds, then banks will have better funding core as they'll be able to

not just the ecb.he swiss national bank -- that's partly a reflection of the service they shared. >> host: is not only that way. when the fed was lending money to the discount window in the thing that evolved into this facility turns out we now know european banks requiring direct from the factory u.s. offices. it strikes me as exactly the opposite when each of them is falling apart and this time they're pulling together. >> host: i'll be honest i did not fully understand at the time. i kind of got my head around this in december 2007, which seemed like an eternity ago. we now know because this information has come out through foia requests in lawsuits and the dodd-frank said overwhelmingly that money ended up being hundreds and hundreds of billion dollars by two european banks, not to bank cds. this would have been politically explosive. it's very much the case the federal reserve was bailing out the banks through the crisis. >> host: you cover a lot of history. he got back to the 16th century. how un

perhaps yet more speculation of an ecb rate cut. let's ask larry. welcome. before this data, were you in the ecb will cut here camp? >> yes. we have moved to that position. we think they'll cut a quarter point. this coming month. they may wait until june when they have a read on inflation but it is coming we think. >> there's been german opposition. a great interview with one of the five wiseman yesterday who said he does not think the ecb should cut rates. when you get german data like this, companies are far more cautious than last month. do you think that does make it easier to win over the german heart and mind? >> also pmis were disappointing after a string of disappointments for germany and europe as well as for the world economy. it should be noted that inflation is moving to the low end of what is ecb's target range and to the extent that oil prices remain down here, there's every chance that inflation will undershoot which gives them further reason to cut rates. >> every time we raise this issue, the pushback, the argument against this is that it's

representatives of the ecb, the commission and the backing effort back in the ecb to rescue new plans to rescue the debt history. 25,000 civil servant res on the table. these have turned into a stumbling block in the location. in agreement was reached and the finance minister samaras has resumed talks. joining us now is janis mileos. thanks very much, indeed, for joining us. are we heading into another standoff with greece or not? >>el well, you know the situation is not becoming better in greece. we still have a very big recession for a fifth year. the recession is going to be more than 4 many 5%. some people say that it will be more than 5% and this cannot go on. and what we see from the side of the troika and the greek government is the continuation of the same policy which creates this negative cycle of recession, more in-depthness, more recession and more cuts which, of course, fuel the recession. so what we are saying is that we need a change of policy. we must come to a new era and try to boost growth. >> what's the alternative? >> the alternative is to stop this austerity, to

so now there's a real expectation perhaps the ecb -- certainly the ecb has more than enough cover toaps to launch something for small businesses, something an ecb version of what we've got in the uk, funding for lenning schemes. so our expectations are that we will get one or the other. not many people think we will get both. but they're covered for the ecb to take some kind of action on thursday. >>> and how is that all playing into u.s. futures? we were called flat earlier on. and we are just below. four points lower on the dow. the nasdaq is implied 0.75% lower. we're up at record highs on the s&p. once again, a record high close. nasdaq up at 12 1/2 year highs and i don't think we've had a three-day down session now for the dow this year which i think is the first time that's ever happened. we've got that period without three consecutive down days. other things to look out for stateside today, first quarter employment cost index is out at 8:30 eastern. it's forecast to rise 0.5%. and at 9:00 a.m., we get the monthly case-shiller home price index. prices are expected to have risen

how does the ecb respond to that? how do they take the punch bowl away in germany but not in spain? >> the point of this entire segment is supposed to be about analyzing the evaluation of the stock market. and steve said a bank that is willing to print money to ecb to backstop everybody could become cheap five years from now. five years. >> i completely get that it's your segment but let's do something that we do all the time. >> the american economy is not back to where it was and things are not all there. if you can project that down to europe, look at the european consumer. >> okay. we're going to leave it there. great debate. thank you very much. >> up next, the nation's best airline survey. who really dominates the skies? >> plus, what is really at stake for j.c. penney? and the battle with martha stewart. and we found the most delicious robbery ever. that's all ahead when "street signs" returns. >> take >> take a look at how some of the media stocks are doing today. 1.7% of bucking the stock trend for that sector. >> here is a disturbing story from our world there are now 5 mi

ecb head mario draghi might have something to do with it. he recently hinted that cyprus might need to sell off some of its gold to stock up on cash. cyprus has a relatively small gold reserve, but investors fear other countries facing difficulties, like italy, could follow suit. it has a whopping 2500 tons of gold. the economy in the u.s. could also have an impact as investors become older and move away from traditionally safe investments, -- become bolder and move away from traditionally safe investments. >> the european shares started the week on a negative note amid some profit taking from last week's rally. eta shows a further slowing of china's economic -- data shows a further slowing of china's economy weighed on the market. we have this summary from frankfurt. >> for many investors, gold has been a shield against inflation and a kind of safe haven in the euro debt crisis. since inflation did not go up as fast as people expected, some people started off profit taking at the end of last week and also this monday. the market, in general

that inflation data has traders speculating about what the ecb might do at its policy meeting this week. our correspondent has more from the frankfurt stock exchange. >> the relatively low consumer price inflation in the eurozone -- this caused a lot of speculation on the markets. what will the european central bank decide this thursday in frankfurt? will the key interest rates be lowered again? at the moment, the majority of experts here do not think that a rate cut is going to happen, but growth data out of the eurozone has been coming in weaker and weaker in recent days and weeks, so lower interest rates now could make sense. what is also going to be interesting for the markets is what mario draghi, the ecb president, will have to say about cyprus and if he thinks that the rescue of the cypriot banks could serve as a template or model for future operations of that kind. >> the dax lost some ground, actually, mostly due to some weaker than expected jobs data out of the united states from the private sector. the euro stocks -- stoxx 50 sharply lower. in new york, the momentum continues

you have the ecb meeting. right now there's expectations because of bad news out of europe that the ecb is going to cut 25 bids. i think that would be market positive. everyone wants don't fight the fed, don't fight the ecb. on the bund side it's a very different indicator. i was told don't be in bonds. because we're going to get inflation and reflation. that has not happened. the 10-year broke 1.7 on the downside. we're in the 1.6s. the bond market has aquity mark concerned about the central bank stimulus. that's why it's good to have a balanced, good 60/40 portfolio would be just right right now. >> yeah. that's definitely the focus in the stock market. no doubt about it. the fed basically talking or suggesting when the stimulus starts to end. kenny, what went on the end of the day here? the market seemed to be finding its groove again. >> the sense is a couple of things. first of all just like the other guests said it is absolutely the ecb, absolutely the fed. we're getting weaker u.s. macro data. look at t

at the end of the day, the ecb can do down one of four avenues very quickly. they can cut interest rates, offer dates, they can do omts, they can do some funding for lending like the uk has done. and the market is right to think that the european -- should be taken seriously. so in the short-term, the debt should be clear for the market. the balance sheet was the only one around the world to shrink over the first quarter of the year, which means the ecb could keep its gunpowder dry and be ready to intervene in the markets. >> okay. the resilience stays. >>> don't forget a bid coin is continuing its downward trajectory following a 12-hour suspension on the world's biggest currency exchange. the price fell $25 before shooting up to $102 and then back up to see 95, this all back up to 8:00 a.m. cet. it has emerged that the winkelbot twin appears to be the biggest portfolio of the online currency. and despite recent difficulties with trading of bitcoins, the "new york times" were told that the virtual currency is here to stay. what we're asking you today is do you

the ecb has put every effort in terms of housing countries on conditionality. basically, use your own job, fist your own problem, and i'm here to help. i think in europe short-term probably the pain is going to be slightly higher, but so is the reform. >> let's get a little bit -- i want to talk specifically about europe and japan. we want to remind people, there's a warning the region could be heading for a slow death if it continues on its austerity path. is it structural or do they just need more stimulus? anyway, again, he compared europe's future to japan' past. >> for 25 years, japan was dying a slow death. >> right. >> and now they woke up. and the fascinating thing is that in europe, the austerity program is actually leading the eurozone into exactly the same policy that japan is now trying to escape after 25 years. >> now, banks in cyprus were shut again yesterday this time because of the strike by bank workers. thousands of employees walked off the job for two hours. the banking union says pension funds aren't fully protected as part of the country's

speculation of what the ecb may do. always more hawkish but saying, we're not necessarily going to pursue a fed-style qe program here. >> growth fears are have given rise over the merits of deep cutting of deficits, whether it may be time for government toes loosen the purse strings. david lipton says our view is that the case of consolidation ought to be reconsidered. mark carney, the new bank of england governor has drawn comparisons to the united states suggesting there may be lessons to learn from washington. jim o'neill, chairman of the goldman sachs asset management suggests osbourn's austerity plan represents a lost decade for the uk. finally, the european commission president is making headlines with his outspoken claim that the era of austerity has potentially run its course, it's running up to the limits of what is politically possible. >> joining us on the line from new dehli, specializing in the eurozone crisis, and jeffrey dix is still here with us on set. sony, first to you. we're clearly in the middle of

i actually think if ecb cuts rates, the euro is going to go down. i think that may be the knee jerk reaction. but i think actually if they don't cut rates, the euro is going to go down on the assumption that there is nothing to look forward to in the eurozone. there is no chance for recovery. so them cutting rates will probably create a small down draft in the euro, but then it will probably rally on the sumg that it will ease stimulus. >> so it was the most -- you know, you said that as if it hadn't happened. it was the most commercially successful of all the godzilla films, godzilla versus king kong. in the japanese ending, godzilla won. and in the ending of the film we showed here, king kong won. king kong is american and godzilla was -- >> it was spanish. >> 1962 released here -- he wasn't really from america. we stole him from africa. but then he climbed the empire state building, therefore ever associated him with the united states. >> but the movie was really from here. and then we made the remake, which was -- i didn't think was so good. >>

breaking news decision out of the ecb. rates unchanged at.75.son heading outside. the new corvette stingray. buckle up and hold on tonight. "squawk box" is coming right back. >>> welcome back to "squawk box". we're with chairman and ceo of g.m. phil lebeau is here. we're all acting like it's 80 but it's not. >> i'm not. i put my coat on. >> it's like 30. we're going to actually go over and look at the stingray eventually. i want to talk first about some of the stuff you told me about, the caddy. where are the caddy commercials filmed? is that in iraq? >> morocco. >> amazing. and cadillac has, in my view, has really helped g.m. regain some of the lost luster. this new one is a beautiful car. and you said you wanted something to compete with some of the euro -- like the the 300. >> we wanted a small luxury car to compete with the very best that the german and japanese have, specifically the bmw 300. this was designed to do just that and it will. >> it outperform the beamer on just about every metric. >> that's right. this is american ingenuity, am

it's unclear what an actual ecb rate cut other than symbolic would have on actual rates. but i think the symbolic effect could have some kind of upside to it. but also putting up a floor underneath further european -- >> confirmation that we'll do whatever it takes really has substance. he said it. >> i think you're right about that. >> i would argue that the ecb cut is priced in and it's done out of necessity and if you look at the credit markets in new york, it's telling you that. the fact that the mc for one second, when you look right now at some of the slowdown in growth that you're seeing, should we not just believe it's temporary? defense spending cuts or the inventory cycle, or is this there coming from the fomc that i should be concerned about that the downside risk to inflation is far greater than is being priced into the market? >> they just told me in my ear my inflation chart was ready. i think the inflation numbers are consequential. there's a coachry of dubs on the fomc who say we need to put our foot on the accelerator. not just because we're missing on th

we have to talk about the ecb and what the ecb president said to cyprus.going to be selling your gold for, you know, for whatever reason, which cyprus is doing, about half a billion dollars, you have to pay, use the money to pay back ecb loans. whether that trend takes hold in other eurozone countries remains to be seen. not pressure to sell. not pressure from the ecb to the governments to sell their gold. it is to use profits to pay back their loans. adam: a lot of people are getting hurt by this decline in gold. emac, thank you for being here. >> that's right, adam. good to be with you. tracy: good stuff. despite today's selloff, scott wren, senior equity strategist from wells fargo expect as a good year at least for markets i joins us now. scott, thanks for being with us. i know you had, you slightly revised your s&p 500 target up, right, around mid-march. things obviously looking a little bit better. if things keep going well do you keep revising your targets up? >> no. really, tracy, we've been the to gnat these last handful of years we haven't had to

ecb on thursday and the bls report, the labor report on friday.n mind they're penciling in 150 to 155,000 job adds. remember 88,000 last month. this could be a game-changer. so we're on hold waiting for friday. david: okay. friddy's a day. of course tomorrow is not insignificant, with the end of the fed meeting as well. larry, good to see you. in the realm of tech investors our next guest has become somewhat of a legend, amassed a 10% share of facebook long before its ipo. if you want to know how to invest in social media few can top our next guest, who joins from us the milken global conference, liz. liz: david, we are happy to welcome tech investor yuri milner. he is the founder of digital sky technologies and he broke into the forbes billionaire list in 2011 thanks to his savvy timing on social media. and you, by the way for our people who don't know, our viewers who don't know, have pretty significant stakes in names like facebook, spotify, ali baba, twitter. so you're the perfect person to talk about sort of developing technologies right now

and the ecb has to get with the program, the reflation program. it's becoming greater and greater because of the difference between the ecb and the fed. >> you say when it comes to these defensive stocks which have largely led the rally -- >> right. >> that valuations have gotten stretched. it's an argument that weiss clearly is making, as well. but there seems to be a difference of opinion in the market right now as to whether valuations are too rich at this point, whether they can get extended even further, right? we have had that argument of late, certainly on this desk and the trading community. there really seems to be a push/pull there. >> well, look, even though i do believe we believe that valuations are stretched in these more -- in the safer stocks, i think until there's an indication that there's a reacceleration of growth in the u.s. and globally, people will stay there because it is safe. we'd be adding new money to the more pro cyclical areas, both because of valuation and when people get a greater comfort level, we think ultimately

that means the ecb. they don't have one right now. guys, back to you. >> japan, no growth, no immigration. few children. no progress. doesn't matter what the boj necessarily wants to do. but a man who knows about whether we should be buying japan bonds is on tap here. let's shift to the bond and dollar. rick sansantelli, cme group. should we buy those bond? >> not with my money, jim. i don't care if they go from 44 basis points to 2 basis points which is a great rally. sometimes missing making money isn't the end of the world. think nasdaq four months before it went down in 2000 and almost doubled in price. let's get to it -- a big day in the markets! 24-hour chart of 10s. low yield around 1.76. you know why that sounds familiar? that's where we closed last year. open it up and you can see how the 10-year chart is definitely flirting with some of the lowest yields since december at least on an intraday basis. let's switch gears overseas, a 10-year bund is hovering at 1.25. let's look at a 2-year bund. when you look at a 2-year note in

the view is the ecb has to do something. the rate cuts. maybe it's more cheap money.. in the meantime, we're also watching what is happening in italy. the new italian president who didn't really want the job at 87 was very angry when he spoke in saying get your act together essentially. there's now a fast round meetings that will finish within the hour of which he basically wants a new government to have been formed. will it hold together? it may be enough for a further rally on asset markets. >> when 44 is an improvement, that's tough. thanks a lot. let's get a check on gold. a lot of news surrounding it today. sharon epperson is with us. hey, carl. the sovereign spreads are one of the reasons that we're seeing the selloff in the gold market. we are looking at prices that are slightly lower than we were after a three-day gain. and the prices seem to be testing that 1400 left on the downside. there still seems to be some physical demand for gold coming in, and it's been considerable. we talked about the u.s. mint and what the levels are there. we're also seeing extrem

will the ecb cut rates? soon there is a lot of belief by a quarter of a percent but half a percent. ecb, mr. draghi i have to take action. and euro moving lower. we'll be right back. [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find se good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. why are 8 million people why are 8 million people sleeping better tonight? they went to a sleep number store. the only place in the world you'll find the sleep number bed. a bed with dual air technology that allows you to adjust to the support your body eds. each of your bodies. the only place you'll find our bed-clinically p

ecb cutting rates. maybe quantitative easing.e european story turns more negative that's going to be a problem. if we have something that disrupts the supply of energy that could be a negative. barring that i think we're in a slow grind higher for the balance of the year. >> if i play devil's advocate on those two points, i'm going to pose this question to you, peter kenny, maybe that will make us here in the united states look good by comparison. problems in the middle east. problems in europe. i'm going to put my money where it's a little safer. here to the states. is that a feasible option. >> absolutely. that's actually i think one of the primary thesises that has led capital to u.s. equity markets is the relative attractiveness. the less risk, the more highly predictive markets as a direct result of quantitative easing, as a result of the lack of the geopolitical scares or risks that you're seeing in the eu or the meltdown or the relative lack of appreciation in equity performance in asian markets very specifically. >> got i

we've got an ecb meeting this week, the fed tomorrow. ecb everyone has baked in a big cut here. they don't have a hot of room to cut. first of all, i see a lot of disappointment there, and i don't know. how do you handicap the central banks sneer because we have an fomc and if you look at where the volatility has come from this market, it hasn't come out of earnings. it's come out of the central bank liquidity gain, which we still don't know what's up. >> we're pretty sure that the u.s. is not going to see any major pullback. if they ease back on some of the purchasing, which is what people talk about, going from 85 billion to 55 billion -- >> even a mention of taper had the market very scared. >> i think it causes a near ferm -- one of the concerns we have for the second half we think markets will continue to rally this year and certainly the next couple of months. the sell in may go away kind of concept. i would worry more about august angst than sell in may as we start seeing more weakness out of europe and things like that. and potentially some commentary around the fed pull

this seems to imply the ecb may have to come in here. >> the ecb have said they're happy to -- to deteriorate. they may say, well, look, it's signs of stabilization there so let's wait and see. so it's an easy one to call. i suspect they might focus more on some of the other indicators, but in the pmi think that new orders growth which is deteriorating at a faster rate suggesting that momentum if anything is going in the wrong direction, not improving. >> what about on a country by country level, besides germany been any others that are particularly notable? >> well, yes. france is interesting because the numbers rose. it's still in a steep rate of decline and it's in a much worse situation than the bank of france suggests the economy french economy is in. now, the german survey responses say the economies were worried about the impact prices. in france, they're much more domestically focused with some suggestions that things couldn't get any worse. >> well, the domestic situation is already a known negative. just to recap for viewers, as well, the composite, which includes both the services

. >> the ecb waiting in the wings. we'll be closely watching. we'll bring in steve who has that part of the story and whether the traders are reading this whole thing correctly. i think it is a fair question to ask whether risk is really at risk, whether the rally peters out because stocks don't cooperate. >> you know, we did our fed survey, which is out today. and i'm seeing a good conversation happening between markets and the federal reserve. one thing i'd like to see, i'd like to see the feds stop tweaking communications now. i think it's kind of working. what happened over the intermediate period, they pushed ahead their timing for when the fed is going to start to taper, when the fed will stop qe. in a wave that seemed commensurate with the economic data. that's the first thing that happened. the second thing is that the market seems to be correctly counting on fed stimulus. and i don't see a need to really tweak it, even though the fed seems to be in this endless communication tweaking pattern here. >> what happens if the communications s

in fact, the balance sheet of the ecb is shrinking. the balance sheet of the other major central banks is growing dramatically. >> let's move the conversation to another asset class that has been a hot trade. it's paid to bet against the metal this year. goldman sachs is closing out the gold short. give us your read now on what's taking place in gold after what was one of the more volatile weeks we have seen in recent memory. >> i hadn't heard the goldman news. thank you. i believe you should own gold now. basically there were two targets for gold on the down side and the quantitative technical gain sense. one was 1400. the other was 1250. the 1400 level has held. now we are headed up. i would argue this is either a big bottom and we are going for a long time or it's a seven-week sort of two-month, one and a half months up move which is good for 1500. >> the trader's view is -- >> if you're going to have a long position in gold do you need it to act better when there is negative news? before gold broke down there was no flight to quali

traders are eagerly awaiting for the ecb meeting next week. >> a look at the markets by the numbers now. in frankfurt, the dax up 2.5 points. the euro stoxx 50 up just over 3% to 23662. -- 2662. the dow jones has about a 1% gain in the year rose slightly down to $1.2989. >> disappointing news for business travelers looking to speed up their trip from frankfurt to london. they're not to write longer for that direct cross-channel real connection. siemens will not be able to deliver the 10 high-speed trains by next year. >> the german engineering giant a admits they underestimated the complexity of the system. it only adds fuel to the fire. >> they're waiting for trains that siemens promised them years ago. euro star was due to receive 10 trains at the end of 2014. that date has been pushed back and a new one is yet to be announced. siemens is blaming the delay on the number of different safety systems used by trains travelling internationally. from amsterdam to london, trains have to switch back and forth between six signaling systems. train travel in germany has also affected. 16 ice's t

ecb policymakers say the bank needs to leave it there to support the region's sluggish economy. the eurozone is reeling from a recent setback. the multibillion dollar bailout for cyprus. and the block is at a record high 12%. >>> here are the latest market figures. >>> south korean auto maker hyundai and chi ya motors are recalling about 1.8 million vehicles in the united states. they have faulty brake light switches. it's bigger than the total number of cars they sold in the u.s. last year. company officials said on wednesday their recalling the elantra made between 2007 and 2013, and the santa fe made between 2007 and 2011. the optima, sorento, are also subject to recall. they say no serious accidents have been reported so far. south korean automakers are saying they had brisk sales, but they are now losing momentum. >>> bp is pulling out of the wind power business in the united states. they say they want to focus on oil and natural gas. they say the firm is selling it's holdings and withdrawing from wind energy in nine states. they estimate the value of the holdings at about

the spanish did what they were told and ecb remained supportive of their bond markets. we catch up in a backtrack and suddenly there yields despite and bounces telephone market. that is a very direct case for central bankers is independent from politics essentially take dating communists which you need to do. i don't think it's healthy. i don't think that's a good model we should wish for. i don't think we want and bernanke doing this, that any other thing or a punish you by selling off on. it's like an hot thing. so we talked about the train nation in japan in the u.k. and in europe for men who thought the crisis are being replaced. a big question about whether ben bernanke at the end of january, 2014 will want or be reappointed for another term. what is your betting on that? >> it's quite unlikely if it's for another term. his friends say he's worn out. i think he's ready to read a book of his own. had to be an up market. look at a picture at an. but anyway, he's ready to step down. the president takes them to stay, who know so what happened. >> who do you think would

that deflated all year, really, since the ecb announced open market transactions.g that pumped gold up for the past few years was quantitative easing one, two, and three. bernanke's latest fed minutes said they could start doing flexible purchases if the economic outlook continues to improve. so the two main fundamental fantastics that were supporting gold has diminished. >> in other words, less qe. >> less qe and sovereign has gone away. so the collapse in gold is fully justified. >> i've got a question for you, bob, but let me ask jeff. they're raising their targets. you've been cautious on this market anyway, and we have seen something of a change in market psychology, just this week, with this herky-jerky consecutive triple-digit days for the market. >> correct. and i admire bob's optimism for raising his target, but i still have some concerns. break down into a couple things here. look at where the rally has come from, it's come from defensive sectors. we've brought in those health care stocks, 18% higher in such a short period of time. how far can you ride th

so i don't know that the ecb, other than one-day trade, is going to affect our markets.ht now, it's about, can we turn this thing around, get revenues going again. because the earnings cuts can only go so far. look at gold, i think it's telling you to take caution. long-term, buy equity. >> did the gdp report tell us anything today? i know it was below expectations at 2.5%. however, it's much better than what we saw last time, which was 0.4%. >> it tells us that we're better than a crisis. it tells us we're coming out of maybe a short-term interim pullback, but we're not there yet. and i think we have to all put this in perspective as to where the market is today. we're 130% above the bottom. >> next week, rick said next week, it's a very busy week with economic data. but let's not discount the sell in may and goaway. for many years, professionals spoke about sell in may and go away. but the last couple of years, it really worked. european debt woes came to fruition, and now people on main street are talked about it. so as we turn the calendars over next week, let's not

. >> i think what people are forgetting here is that the fed, the ecb, the bank of france would like to see gold prices lower, bank of china on the other hand, i suspect would like to see gold prices trading higher. the monetary authorities in the west would much prefer to see a much lower gold price. it would send a signal good, bad and indifferent that their policies are doing the right thing. they're not going to be sponsors of stronger gold prices, sri lanka may be, china will be, southeast asian countries will be. but the major monetary authorities, the ecb, the fed, they will not be. >> dennis, thanks for your time. mike khou, i want to go to you. see any interesting activity on gld today? >> dennis was talking about the futures. it is actually a decent proxy to trade gold for those who can't trade the futures. and when we take a look at what the options market has been saying, puts were out chasing the calls on gld almost 2 to 1, that's unusual. trading about two times the average put volume. i think people are feeling it could go a little bit lower. and vis a vis, gold i woul

mario draghi from the ecb, he talked and said the risks are to the downside now.t there's still economic weakness, and you can see what that did for the markets. right now i'm sticking to the idea that global weakness is trumping reflationary trade in japan. >> any thoughts, bob, on your anticipation of the jobs number tomorrow? that should set the tone, obviously. what are folks saying about it in terms of the number and what we might expect? >> private sector job growth. that's going to be the key. it was well over 200,000 in the last one. if we get below 205, 210, that's where the estimates are. this is private sector, not total. if it goes below 200, we've got big problems. the risks are to the downside. this will be the fifth weak economic number if we get one tomorrow morning, the fifth one we've had this weekend. don't want to see that. 8:30 a.m. tomorrow morning, we'll see that number. >> 15 minutes before the closing bell sounds, we've got a market that is holding on to the gain right here, up about 43 points. >> he may be known as dr. doom, but nouriel r

also, we are looking for the ecb today and the boe. the market is going to focus on that. on facebook, they are holding an event on a new android phone. it's a cell phone made by htc, but integrate facebook on it. facebook's revenue from applications in mobile. >> mark zuckerberg said they don't need a cell phone. obviously, he's changed his mind. >>> more trouble for the carnival cruise ship, triumph. they left passengers on board with few resources and fewer toilets. you probably remember the ship was towed in dramatic fashion, if that's possible at the miles per hour to the port in mobile, alabama, where it's stayed. yesterday afternoon, wind gusts of 66 miles per hour broke the triumph from the moorings and went adrift for hours. you saw the gash. it slammed into another boat leaving a gash in the stern. 600 crew and 200 contractors were on board at the time. no one was hurt. the wind blew over a guard shack sending two people in the water. one was rescued, one reported missing. >>> the change behind the "tonight show" desk happened yesterday. jimmy fallon will take ov

market's down, although there are no measures that have been announced because of cyprus and also the ecb diriririririririrector did el if there are i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i i in this all neay unchanged at the moment. euro stoxx 50 not change. prices bottomed out after wall street started in positive territory. also the euro is recovering and stayssssssssssssssssssssss >> we will be back after a short wi t t t t t t tneo-na childldobe under way s s shohohohohohohohohohohohohohohohortlylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylylyly.>> we also have some champions league soccer action for you. do not go away. >> stay with us. >> welcome surroundingngngngngngngngngngngngngngngngngngngngngngngngngngngngngngngngngngng it upcoming the e e emunich continues to grow. the only survivor of a right- wing gang accused of killing niniial. most of the victims were turkish. media wereee case. the court said all the spots were filled, but the turkish government is demanding that munich officials re

market's down, although there are no measures that have been announced because of cyprus and also the ecb director did not tell what he wants to do if there are similar crises like in cyprus. this all drag the market down. the dax is nearly unchanged at the moment. euro stoxx 50 also not change. prices bottomed out after wall street started in positive territory. also, the euro is recovering and stays above $1.28. >> thank you very much for bringing us up to date. >> we will be back after a short break with the latest on a controversial neo-nazi child to be under way shortly in munich. >> we also have some champions league soccer action for you. do not go away. >> stay with us. >> welcome back. the controversy surrounding it upcoming the enough to trial in munich continues to grow. the only survivor of a right- wing gang accused of killing nine immigrants will stand trial. most of the victims were turkish. >> yet, turkish media were denied accreditation to cover the case. the court said all the spots were filled, but the turkish government is demanding that munich officials rethink their

as long as the ecb is effectively the back stop they've been, i think europe can continue to muddle along, eventually come out of its recession. but the u.s. will remain relatively immune because a lot of the growth in the u.s. we expect to be domestic-driven. >> nathan, we're heading into the second quarter after a stellar first quarter for the markets. what are you telling your clients to invest in right now? >> i like large cap growth. when i took a look at con edison, which gives you electricity to power your set, and they're selling at 16 times earnings, and i take a look over at some very large multinational corporations here that are selling as a group, large cap growth, selling at a group at about 25% discount to its traditional p/e ratio, i say one of the first thing an investor can do to improve their portfolio without put mortgage money in stocks is to move some money over, if they made money in small caps, if they made money in mid caps, move it over to large cap growth. that's what i would do on the stock side. and on the bond side, i would shorten up my duration, which is th

oh, my gosh, the bank of japan just declared war on the ecb. he said that. awe stimulus is spongeable who said that? i did. we're going to reconcile the two. and i asked him if he was to saver in japan what would he do? here's what i would do. you know what that means? sell, sell, sell. come back in about two minutes. >>> the bank of gentleman ban executed its first government bond buying operations after announcing the new easing policy last week. let's get to rick santelli in chicago with some more thought on that. hey, rick. >> hi, krl. watch out, he's saying he feels piffy today. why did you say that when the announcement came through, you said, boj just declared war on the ecb. very simple terms, tell our viewers exactly -- this isn't about comedy. you believe this. tell us what you're thinking. >> look it, we're talking about the bond buying program in japan. 97%, 95% of all bonds are owned by japanese insurance companies, japanese banks, and japanese private citizens. unlike here. rates of 55 basis points and you're telling me you're try

a president of the ecb step in and saying you sell your gold reserves. european zone saying you use your gold reserves to solve your problem, that will put pressure on gold. stuart: no action from north korea, china slowing down, that doesn't seem to be the point. i think it is the europeans pushing the week nations to sell off their gold. i had a shock when i came in this morning and saw that. let's go to the big board, the stock market, gold way down, down only half a percent, nothing like a huge percentage drop building up some steam, i see. $13.94. off about $104 per ounce. losing some steam as we speak. that is the headline of the morning. i wants to stay with stocks for a moment, caterpillar, i'm sure that the stock is down because the stock is slowing. >adam: after china's gdp estimates. the first quarter came 7.7%, analysts reckon 8% so caterpillar taking a hit, period crediting swiss having ranking them outperform but lowering the target from $123 a share down to $110. closer to $85 roughly pulling the dow down by the weight dow jones industrial

unfortunately i have to completely agree with him on the ecb.he promise that the ecb will intervene conditionally into government bond markets essentially boxes them in. then it means they don't want to intervene unconditionally. they have sort of limited themselves. so i think it is a very fair perspective jacob says. i think also, you really do want to listen to him as everyone here is known to listen to him and fred, anders, and nicks nicholas on the european politics that things are more stable but i have to push back one little bit. the fact that things are politically supportable or sustainable does not mean they're optimal or nice and jake, i'm not accusing jacob of saying that. we have to recognize you could have ongoing, 30, 40% youth unemployment in many countries doing lasting damage to the supply capacity. to their future prospects. and yet, not change the current government regime. if you think about it, you have a world where this is after world war ii. we have constitutions in place in europe, specifically to keep out radical part

next week we will have the ecb meeting. we know what the japanese are doing.ght now markets are on wait and hold. let's go over to chicago. hi, rick. >> i like what you said. everybody wonders with all of these programs and the rules of the game for picking stocks. maybe that makes it very real like everybody else. this week two charts summarize the entire week. going to be the lowest yield close but the other one might be a surprise. in the european union. that's the uk. the pound has a huge week. best close since february. i think we need to apay tension to how their economy does and post the good number that they had yesterday. >> thank you so much for that. i just want to remind everybody that we are in the middle of the 2013 cnbc stock drop. right now in the war room, the mavericks. my team is there discussing which is going to be their first stock pick i'm going to leave them to it and let them concentrate and get back to the gang here. >> how are you? >> james. very formal. >> it is a special day. >> herbert greenberg. >> andç amanda drewry. what do yo

cbwes hear as littl ecb cbs s from thes way cb pa ges rcbefslecbs interecbst.s>> tha t' t hem sacbids thats s statcbes, evecbn aftcber allsb sn ited scbtastes cb sa id spocb shave a gi cbsasid. cbsos thecb cbs and wecb're learncbinsg itcs unfo gets mor es s intecbnsre i n one s igcbhbsorhood.cbonit oringcb cbcbbisll, go od morn ing. cb rseporte shcbarslie.cb knowcb the fcbbi direccbr sucbelsler andcb tshe a ttorneb way o rcb cbs perhapcbss alrea dy h b ries ofcb the activcbitsy sovhe s get cba spersonal s s givecbs sthem a bcbrisefing t cbovsernigh t frocbms hiscbunsm socbnat he cbwass cb akenedcb sovernicbonsce and hacbppsencb swatert own.s no sch edules s todacbys so,s there 's a at w cblaster ifs the s point wh ere hecb fseelsme kcbs but cbi shave tocb ist wi uatis cbget out fron t.mocbdes. cbwes do knows the sitcbuasti t it's imporcbtasnt eno ugh ts sthe s direcbctsor and the acbttsorn sge cb> do we hacbves anys sense pres ident cbon?s >> rcbepsor he c onnectcbiosns a resre g this cbovserseas impliccbatsions. socb tshat co uld incbdiscate mport ance ocbf st