the ecb published documentation. welcome to take a look at it on their website if you want to. >> that's why you are here, to save me that trouble. >> i don't know, many pages. >> too many. >> i think the basic point is the ecb is kind of keen to get banks to actually lend more and is offering very attractive anding facilities to offer fixed rate, four years. that is very attractive. 0.25%. i think the difficulty they have is some banks are in the d everagingg mode -- del mode, and some of them need to do that, because they need the support even if they are deleveraging. others where they think they have overcome. >> you can get funding if you do not accelerate the reduction in the loan books and keep it stable thereafter. >> yes, that's right. veryi think it is a conflated system. personally i would have thought it would have been better to copy the bank of england lending scheme. that is a little unusual, but it is at least rather straightforward from what we have here from the ecb. >> julianne, thank you very much

ecb might have a few things to say about that.'s talk about the top headlines a bloomberg this morning. in an exclusive interview, nowotny has told jon ferro that he needs -- he sees no need to further ecb action. he did not rule out quantitative easing. is economicaspect development. what we see in europe is that we do have a recovery, but it is not a very strong recovery. >> ukraine has said separatists etsk, with their strikes killing 50 people. pro-russianthe insurrection that has rocked the country since march. we are going to get potentially more eu sanctions. israel has called up reserve soldiers according to an official in the country. world leaders are trying to persuade israel not to invade the gaza strip. the palestinian leader has called on hamas to stop the rocket attacks. more details on what is happening in the region with elliott gotkine. he joins us now from tel aviv. reservists in addition to the ones previously called up read what does the number now stand at? total ofk it is a 33,000 reservists. the state capit

wax and ecb exclusive. stocks rise after a five-day drop. says pcb stock europe from sinking into a depression. >> and world leaders tell israel not to invade gaza. this is the country with tens of thousands of extra soldiers at the border. good morning, everybody. you are watching "the pulse. we are live at bloomberg headquarters in london. i am guy johnson. >> and i am olivia sterns. >> we are going to get into our top story. it is a big tobacco deal. imperial tobacco confirmed that it is in talks to buy some major u.s. cigarette brands. could spend $7 billion on the acquisitions. let's find out. caroline hyde has been tracking the story. we have a merger taking place in the states. the regulators are going to want them to spend some out. they have some interest. >> exactly. have speculated on since the initial share sale of logista. today, they will raise about 4 million pounds. everyone wondered what they would do with this money. will they invest it or pay down some debt? could be -- could they be putting some of this money into these a

the ecb will be a dominant theme.ually expecting any big revelation from the ecb today. >> that's true. the big question people will be asking is how long is it before everything that mario draghi throughout the european economy last time, how long is it before we really see that start to benefit. and if it does not benefit, how long is it before we see them act with quantitative easing? somewhere else we will be looking is germany. we see figures out of germany. without strong germany, we don't have a strong eurozone. we will want to hear about what to draghi thinks about germany as well. >> we will want to hear may be about the euro. since the announcement in january, the euro is up slightly against the dollar. will that worry him? >> to a certain extent. he has bigger things to worry about them and to be honest. the euro has been range bound against many currencies. there is the hot overwinter decision that we don't really know if what the ecb has done is going to work. .. that is the key point we have had so much

he mentioned the success of the ecb's recent measures. yield below 3% in spain and italy sustainable? in a word, yes. from there.ck it up &aa is swirling around -- m is swirling with imperial tobacco laming they have been eyeing. i will be delving into smoking and slimming. more on those deals a little bit later. back to germany. >> thank you so much. we will be looking at how angela merkel is trying to seize control of this spy scandal by expelling the top u.s. intelligence officials here in berlin. it is a remarkable story. we will have more on that later on. for now, i will hand it over to elliott. >> day 4 of israel's operation to stop rockets being fired from gaza into israel. it has called up more

change at the ecb.t announced the introduction of minutes and the change in the frequency of meetings. historic, or simply catching up with its peers? manus, which is it? >> i think it is a touch of both. getting into sync with the bank of england and the federal reserve and shaking it up. that is what draghi is doing. i was listening to his conversation to news reporters. he said i want to break this relationship between its heavy expectation or this self-fulfilling prophecy of expectation. every time we run up to an ecb meeting, there is this weight of expectation, something new, new policy, a new way of implement and things. he wants to break that. we're going to a six-week cycle. then when it comes to matters of clarity, this is the interesting thing. for 30 years, it was suggested that they keep minutes. but it was suggested that minutes be locked up for 30 years. the cheap economist said it is absurd that anybody should be deserving of minutes. there is enough transparency. when it comes to the he

or the ecb and u.s.ave thought canon making 80% of its sales overseas, would be up. two thirds of that in the states. it was the best performer. >> a lot of smiles today as the dow hits 17,000. can any cameras on the floor of the new york stock exchange. -- canon cameras. reporter stakes are based on news events. thanks for watching us on "first up." "on the move" is next. ♪ . . >> good morning, everybody. we are live in hong kong. i am rishaad salamat. this is "on the move." another advance for asian stocks led by exporters and banks. shares are the highest in years. the chinese government battling one more thing to worry about. the message clear, rates in europe will stay low for quite some time. we begin this final trading day of the week with positive news for asian pacific investors. the jobs report coming out of

and the ecb. no change expected from the ecb today.e are expecting more detail on some of the previously announced policies. what d.c. the strategy for the ecb from -- what do you see strategy from the ecb fending off the specter of deflation? >> the european economy already looks like a deflated balloon. there is very little actually happening. having rates this low is not stimulating. i am very concerned about the market's real think. the market is thinking we will put 400 billion of targeted long-term repos into the market which means all that money for banks. what were they do when they get that money? are they going to invest in sme's in an economy that has flatlined? or are they going to buy more government bonds? we suspect they will buy more bonds. and this is the real story why we think there is still another 50 basis points in bond yields, even though there are records -- at record low levels. right back to the situation where the european sovereign debt crisis started. that is another massive market distortion. it is mostly

mario draghi said the ecb will keep interest rates low for some time still, but he also said the ecb stands ready to do more if necessary. >> the council is unanimous in its commitment to also be using unconventional instruments to meet its mandate. should it become necessary to tother address this prolonged time of low inflation. havewmakers in germany voted for it nationwide minimum wage. most -- the vote in parliament followed a heated debate. companies have warned this could lead to job cuts. even chancellor angela merkel has expressed concerns it will undermine germany's competitiveness. the social democrat party has insisted saying that a nationwide minimum wage will boost fairness. the warm-up is already in full swing here in france ahead of the world cup quarterfinals. prince is facing off with germany on friday. earlier we talked about how duringf beer has spiked the cup. sales of televisions have also spiked. rise andes are on the manufactures have the world cup to thank. in the months leading up to the game, one out of 10 french have opted for an upgrade. the formula has w

the ecb policy direction. there wasn't a great deal of interest in the indian market today and that's because of what was happening with the exchange operator, the bsc, trading had been disrupted for about three hours across the major markets that the bse operates because of some connectivity issues. it was a network issue. this is quite singularly large disruption. as i said, a couple of hours along until this problem was fixed. but if you put any trades on earlier on in the morning when the market was functioning, then those trades were canceled as a result of this outage. but things are back to normal now, trading has resumed after that network outage. all in all, very cautious session here as we watch and wait for clarity over what the payrolls will reveal and the ecb, julia. back to you now. >>> now, on today's show, as independence day nears, many americans are gearing up for their annual barbecue. we find out why meat prices are becoming hard to swallow. >>> but not everyone will get their grill out tom

ecb has a lot to think about. ♪ >> welcome back.reaking news on banco espirito santo. stock is down. jon ferro? right now, 70% on the month. the open down 41 point 5%. a record loss at three point 6 billion euros at the bank. you see the reaction. there's the bad news. the bank sector on the stoxx 600 down 1.8%. element canervisory have seen ayou move of three basis points of over three years. >> arnab das was saying we're going to see these events, but they're not systemic anywhere. >> i think what is interesting, as we go into the stress test and the aqr results, of course you're going to see more failures. you are starting to see the failures come to life. >> there is criticism about the moneyus pots of allocated. private way of raising the capital. >> the troika still in portugal. ♪ >> good morning. welcome back, you are watching "the pulse." live from bloomberg's european headquarters in london. top headlines -- euro area inflation slowed in july to the weakest in almost five years. just 0.4%. concernring investor that the euro

the ecb is expected to keep interest rates unchanged today.s after the central bank cut its benchmark rates to a record low last month and introduced a negative deposit rate. the decision will be announced today at 12:45 london time. we will bring you maggie -- bring you maggio draghi's news conference. we sat down for an exclusive interview in frankfurt. >> the ecb has been so determined. [indiscernible] germany is voting on whether to introduce a nationwide minimum wage today. the pay will be set at eight euros $.50 per hour. it was introduced by angela merkel's third term coalition. critics say it risks killing jobs. the u.k. has what some might say is a long and glorious past when it comes to engineering. firmware ways to radar, britain has pioneered some of the most important technologies in the world. a celebration of british engineering took late and three finalists all look likely to fly the flag for many years to come era get --. >> a supersonic jet, a super sensor, and a super scanner. three super technologies fighting for a prestigi

it is a non-newsy ecb announcement.ght and the pips -- two pips of change there. we will of course address the , his pressi comments conference at that moment. back to jobs day, the ramifications for all of us nationwide. it is not in the text books. most certainly not in the text books that alan krueger uses at princeton university. there has been a great distortion after the great to anion, that has led extended financial repression. alan krueger on our reverse expectations. alan krueger on bill gross' new neutral. week somewhats agreeing with this idea. the guard at the imf pulling the imf for one or two years over to the new neutral. do you believe in the new neutral, or can we be more optimistic? >> i am on the optimistic side. the biggest scar from the great recession will be the smaller labor force, less investment in the u.s. from that new level, we will see continued expansion and growth. >> what drove the image -- what drama janetday, the image of yellen and christine lagarde. angela merkel it would have been

fore is any information those wondering if the ecb will do quantitative easing.ying they cannot rule out interest rate adjustments. the estonian economy is less balanced wages wise. he's the central bank governor of estonia. says they are not needed now. laying down -- p[ >> a second hour of "the pulse" is coming up. euro stoxx 50 will be here to talk about the cross channel operations and beyond because they have ambitions and other parts of europe as well and products in other parts of europe already. novartis missed estimates just by a little bit. we will talk about the expansion plans and the structural changes that novartis has been bringing about. we will talk about their growth products and their deal with google. you can follow me on twitter. stay with us. ♪ >> russian rout. drop in moscow is the u.s. and europe rank up sanctions. john malone buys a stake in i-t v. every cloud has a silver lining. sap shares rally. we bring you an exclusive interview with the ceo. a warm welcome back to the program. good morning to our viewers and europe. welcome to those

the ecb meets tomorrow.ast month was the big meeting when all sorts of measures were announced by mario draghi. how soon, given that inflation is at 0.5% and manufacturing is hardly picking up and unemployment remains at 11.6%, how soon before further measures should and will be considered by mr. draghi and his colleagues? >> we might have to wait quite a long time. i don't think the ecb feels as pressured as the market think the ecb is feeling into taking further action. probably the ecb is taking a broad view of what is going on in europe at the moment. it is looking at some countries where the recovery does seem to be being initiated. in spain, numbers are coming out -- [indiscernible] absolutely right. the countries where there are problems, for instance in france, that is more structural. i suspect the ecb doesn't feel there is absolute imperative to take further action. the problems are much more deep-seated than simply small monetary policy actions. i certainly don't think the full scale quantitative

the ecb is using a very strong forward guidance., they're setting a rates are low and they will stay low for the best part of four years. it is a very strong commitment. as no other central bank is doing that. abs, are they going to do them? >> that is next year. abs markets are calling to the data is a shot by trillion euros or more since prices. the market just isn't there. it would take a long time to get the structuring process in place. it is not going to happen this year. >> thank you very much, stephen major. we will -- he will be staying with us. >> bmws multibillion euro battery deal with samsung, the world's largest luxury carmaker teams up with the world's largest smartphone maker. will make batteries for bmws line of electric cars. willis is that the actually worth it to b&w? we will have more on that after the break. ♪ time for today's company news. citigroup agreed to pay $7 billion in fines and consumer relief. citigroup is among the banks investigated by the u.s. justice department for allegedly misrepresenting the q

you see the ecb start to do more.ve these countries the flexibility that they desire, if any specifics come out, if they get the flexibility, they won't push forward on reforms. really, we're talking about france. interesting that an ecb board member is talking about patients being a virtue. in terms of giving the long term measures that the ecb has put in place time to work. and they're pushing back against any calls that we should see anymore easing from the ecb now. >> pretty much every investor that we spoke to said we overrate european equities. massive lyrical hurdle to qad coming. she is that an emergency. >> john, thank you very much. jonathan ferro with the latest from the eu finance minister meetings. >> gathering steam on the back of jobs data. we're looking at their earnings momentum, volatility and a lot more. >> welcome back. is car sharing service uber cutting its prices in new york to compete with new york tabs. the lower price will be in place for a limited time only. largest is uber's market. the uni

we will sort of tax your money if you keep money in the ecb. unprecedented move for a central bank to do that and i can't tell you how much more they think they need to do to get there, going. i think we are on a path to normalizing rates in the us, but there is no debate that the ecb should be lower for longer. cheryl: have you convince us investors to go into a fund like this? it's pretty specific and it seems to be risky strategy. >> the us has multinationals all of the world. big companies that you know that are not just reliance on europe. they operate the us and china and these are global growth companies. the us has had hired evaluations of their sort of cheaper companies with global business. cheryl: jeremy schwartz. thank you very much. we have six minutes to go till the bell rings. everyone knows wall street slows down over the summer months, but that doesn't mean you will stop making money. we will bring you pics for your sleepy summer coming up in the next hour. "after the bell" myself and adam shapiro up next. ♪ hey there! starting

to testify on ecb policy. his message was clear. of cheap money lending.imulate bank >> we built in strong incentives for banks to extend lending beyond regional plans. both the banks and those that have been deleveraging. overall, the measures adopted last month have provided additional monetary policy accommodation. >> those were the words of wisdom from mario draghi. jon ferro joins me now. you have spoken to more people than i have. that was a dovish mario draghi. going to bes were his last line of defense and stead he will stay in the job. there was some talk that he was getting frustrated in frankfurt. and he has source brushed them aside. the big thing off the back of the ecb measures as we have a banks.for the you have cheap funding. what are you going to do with them? a lot of people would be sent to: say they will do what they did those co-years ago. >> he will not get a return on equity. >> two years ago, you could get six or 7%. now, you cannot. the other side, if there's going to be used for bank lending, there has to b

it doesn't matter what the ecb does.his french economy changes fundamentally, there is nothing the ecb can do. there has been >> structure of -- there has been charter reform. matteo renzi looking for budget cuts ability. he is also looking for structural reform. >> yes. is, if thek structural reforms are not frontloaded and they get the flexibility first, they do not follow through. it is a big risk for the likes of france because they have been talking about her forms for five years. the only thing we see from the french recently is tax hikes. >> so we will get fresh data working its way into the european equities stage. we had a strong session in the u.s. overnight. fed minutes are 20 pages long and you can pick out what you want. but if you look at the certain damage elements that came out of the federal reserve last night is, yes, we are concerned about some of the risks, some of the froth. >> i like what i heard. they will look at macro potential weapons or tools rather than rate hikes. futures are fairly indiffere

that message is everybody of the ecb.hen, he was a little bit provocative -- matteo renzi on the backhand. bang. he said him stay out of italian politics. no, no. >> the same thing to drive be. -- draghi. >> stay out of italian politics. a point for the ecb, the message, we will do enough andy you guys do a little more. it is incredibly sensitive. maybe the message back out is stay out of our business, you hit your mandate -- the 2% inflation target. he has seen what rizzi hasn't done. comeave to say, renzi has out on top. -- he has seen was a renzi has done. germans askede for more because they exceeded their debt. >> and it worked for them? >> clearly. >> feeling the heat. marks and spencer's ceo under fire. we'll talk about that. ♪ >> welcome to "the pulse." marketers spend -- marks & spencer's clothing sales have slid and said customers are getting used to the redesigned website. good morning. thank you for coming in. sales are down. the bad news for marco bolan because that has been his key area. he spent nearly $4 b

investors are waiting to hear what the ecb president says about last month's stimulus package. of measures he put out to stimulate the euro region. updatesbring you throughout this news conference. you can also watch a live event channel. first, i want to dig into the story. it is jobs thursday. being released early. we are all off for july 4. will we see are worse with economic numbers? the good, the bad, and the uncertain. editor isics discussing the surplus the u.s. is facing and why it is not necessarily a bad thing. first from you on what we can expect from june. >> the good is we are likely to see labor market rebounds continue. pace of that, but the jobs creation is the fastest in 15 years. you mentioned the consensus. the fifth be consecutive month of over 200, which we have not seen since the end of 1999, the beginning of 2000. the forecast is being ratcheted up after yesterday's surprising report. 281,000 jobs were created in june. the interesting thing is, so far this year, they have consistently undercounted the labored up hartman figure. better than expected number

the ecb policymakers say measures prove not to be enough. the central bank will act to ease policy further. we'll hear from ecb board member peter frett later on cnbc. >>> it's worse than you think. india's government sends a warning ahead of tomorrow's numbers, calling for the a sharp fiscal correction to bring down inflation. >>> reclaiming victory in indonesia's political race. but some say it's too early to call. >>> $7 billion in the works for citigroup. investigator look at paying out for mixed mortgages. >>> coming up on today's show, croatia plays the game of tourism and looks to cash in on the huge success of the series "game of thrones." and brazil's football coach luis ferarri describes it as the worst day of his life after the national team suffers an embarrassing 7-0 defeat. we bring you all the action from brazil. >>> and the u.s. retailer the container store misses that america is now in the midst of a retail funk. find out what he has to say about shoppers' habits later. sharp losses for the markets in europe, yesterday's tra

we're tracking the storm, the employment data and the ecb.ting some help for the forecast from moody's analytics chief economics -- economist mark zandi right after this. don't just visit new york visit tripadvisor new york with millions of reviews, tripadvisor makes any destination better. if yand you're talking toevere rheuyour rheumatologistike me, about a biologic... this is humira. this is humira helping to relieve my pain. this is humira helping me lay the groundwork. this is humira helping to protect my joints from further damage. doctors have been prescribing humira for ten years. humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. humira is proven to help relieve pain and stop further joint damage in many adults. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or wors

>> never underestimate the inertia of the ecb.s getting them to be unanimous and dropping is doing up -- draghi is doing a fantastic job so far. cutting rates negative for instance. personally, i do not see why we have to stop at those basis points. there is a great experiment for the ecb. 10 basis points. let's see what happens. >> do you think anything they have been doing so far will be? think interest rates and inflation adjustment -- 12 months up to april, we thinking to account weaker inflation? they haven't necessarily been paying less. have been very careful with their balance sheets. there is a complete paradox. >> the push and the poll. >> exactly. >> nick beecroft, more from him when we return. you are watching "countdown." ♪ >> welcome back to "countdown." i am anna edwards. i am here with nick beecroft. nick, let's talk about if there were to be a correction, where there be a change of direction? where is the spark going to come from? -- where is the spark going to come from? property prices fell in china. you can get

left interest rates unchanged and the ecb director promised that the interest rates would be kept low for a long time. >> let's get a look at those market numbers for you. we will stay in frankfurt. the dax closing the day above that 10,000 level. it has been flirting with it for a while but it managed to close. for the u.s. stock 50, it was higher in new york. the dow jones industrial average above 17,000 four the first time ever. as for the euro-dollar, one euro will get you one dollar and $.36. >> a rest day today at the world cup finals. >> friday sees germany take on france in a mouthwatering clash of european quality. >> does the team have the confidence to overcome their neighbors? >> the german squad in route to rio where they will face france in what promises to be a tough match on friday. excited fans turned out to which the players well and snatch a quick photo before the bus disappears into the darkness. earlier, the stars of the match against algeria, they took questions at a press conference. , one hot topic is whether the captain should be met -- moved from defense to m

ecb that soin the much work is going into this. a terrific amount of work.ve been raising capital. he told me they have been strengthening balance sheet by 200 billion euros. what it means, because they are frontloading and raising capital and deleveraging, a lot of these guys will probably pass these tests. these tests need to be rigorous and credible. mario draghi indicated last year that for them to be credible, somebody would have to fail. put that question to him, is that the case? this is his response. >> you cannot measure the strictness of a test by necessarily the results. you have to assess the methodology and the rigor. that say, it is very likely some bsankanks will come below e threshold that defined -- defined in the stress test. they will need to raise capital. meaning capital shortfalls will be identified. >> so this is the message from the vice president. they are credible because the methodology is credible, yes. still, despite the d leveraging, there will be people here that will fail these tests. >> every analyst knows the disorganization

the ecb has done its part. what next? ♪ >> twitter is said to have agreed to by the mobile advertising company targets people on their mobile phones or tablets with ads for things they have already expressed interest in buying. recalled 8.4 million cars in north america for defects including ignition and electrical malfunctions. the company has called back more year.0 million cars this it expects to take a charge of his much $1.2 billion. the japanese games maker rose 11% in tokyo trading. the company is seeking partners in china. chinese lifting a 13 year ban on video game consoles. welcome back to "countdown." it has been a year since mark carney took charge of the bank of england. when he arrived, hopes were high. than thed more luck three lions in brazil? >> mark carney would be england's star striker. when he stepped down for the first time, the bank of england's new captain faced a tough task, but his fans were cheering him on. almost straightaway, he he launched his first attack -- forward guidance. it links intere

ecb and i will stay in the ecb and all of the rumors to the contrary are coming from interested partiesaps are unfounded. message, loud and clear, you are going nowhere. the israeli cabinet has accepted a cease-fire proposed by egypt. the agreement went into effect in 9:00 local time. the decision came after israel issued orders to 38,000 reservists for a possible ground invasion. government said russian government -- russian forces may have shot down one of the airplanes. the ukrainian defense minister said the plane was shot down. he was also allegedly hit front out as you'd that showed it cannot reach. -- davidiam hague cameron shakes up his camera and -- cabinet. he is seeking to promote women and new faces in his party. looks like window dressing. >> sort of window dressing. if you look at the timing, it is interesting. when you talk to political observers, the idea is to refresh the cabinet and put younger people into government, more women into government, and have this generational switch. you have william hague, ken clark is 74. people let go were told inside the house of commo

and everyone else are doing all the right rings. >> the supervisor operates under the auspices of the ecb. it's the first building block of the banking union, a project two years in the making and now finally taking shape. experts say it is groundbreaking. >> the agreement was a breakthrough because it was the first time since the beginning of the crisis the european union was doing something really structural. >> the people behind the supervisory mechanism say it is already having a positive impact. >> banks have started to take significantly fewer risks with their balances ahead of upcoming stress test. they have borrowed more than 50 billion euros from the market. >> some analysts say mario draghi was only able to calm the markets back in mid-2012 because the banking union was also being set up at the time. experts say together, they prevented the eurozone from collapsing. >> well, let's look at the market action, and european shares suffered a steep selloff on tuesday. our correspondent sent us this summary from the frankfurt stock exchange. >> the increase of the german dax above 10,

. >>> the ecb ensures that additional measures are ready if necessary as investors turn to janet yellen's testimony later today. >>> another listing in the mega mobile space. >>> and software ag warns on sales. the stock sharply lower in frankfurt after project delays will miss forecasts 37. >> announcer: you're watching wases was, bringing you business news from around the globe. >>> a warm welcome to today's edition of "worldwide exchange." take a look at what's coming up on "worldwide exchange" today. analysts say we need to see deal activities more than triple to support the u.s. economy. janet yellen and mark carney face questions in their country's respective policymakers. and banking on good numbers. jpmorgan and goldman sachs post q2 figures today. we'll get the latest on those. and building bricks in the economy. we take a look at future prospects as they get set to meet in brazil. fighting has broken out in libya's capital destroying 90% of the planes at the airport. militias have been vying for control of the airport for years. the u.n. announced it was pulling its staff out of

>> the ecb maintains its low. draghi promises to publish minutes for the first time. jpmorgan is said to unwittingly help bnp paribas violate u.s. sanctions. and soccer scandal. speaksr of faith -- fifa out about corporate culture. >> you find a number of members of the executive committee with allegations of corruption or being involved in inappropriate behavior. >> beans that are processed through a cap. and, find out how the u.k. is beefing up its naval power. first, we begin with a bloomberg exclusive. jpmorgan may have unwittingly helped bnp paribas violate u.s. sanctions according to a person familiar. billionch bank paid $9 for processing dollar transactions for countries such as sudan. jpmorgan has not been accused of any wrongdoing. here with more is caroline hyde. good morning. walk us through the details. >> the saga continues. bnp paribas has admitted guilt. 9 billion euros in terms of what they had to be fined. they were using jpmorgan as well. unwittingly, jpmorgan was involved in this, helping hide billions of dollars of deals related to banks in sudan,

because we are going to get a qe from the ecb. will we really get qe from the ecb? >> no, we are not expecting any day soon unless there is a crisis. that is the way they are thinking about it. emergency. they would rather avoid using it. tois very effective stimulate the economy. they think that europe is slightly different in financing. a wealth of qe in the united states. they are not convinced. therefore, they are not rushing especially in this environment. >> what is the risk? the fixed income market, high-yield calms down. it is incredibly narrow. it's the risk in the fix in,, is it the biggest risk? biggest upset for markets will be a spike. areas where you would least expect them not to the areas you want to be particularly careful and that will be credit. when we look at the spike, is it in debt or sovereign debt? of the treasury janetg, at some point, yellen needs to invite some into the market and stop saying less stay low forever. >> yeah, we will hear from the fed on wednesday and here they're thinking. moving. still and the environment is still quite u

banging system in europe and impact on sovereigns make it likely we'll see a full on qe out of the ecbnk that's got to be on the table, and that's an excellent question. look what happened with the european data, every single one of them had a negative number and sign put out, especially on industrial production, and all worst than expected by economists and by the street, and so all that is raising questions. i think what mario draghi said yesterday they would do all they could and promising dovish comments on bank policy and urging europe to get the act together on reform, something the central bankers had to do for quite some time and not got the response. a lot of commentary as to whether or not, you know, they use this time period here where there was stabilization in the system and didn't use it for reforms, and now that's coming back to haunt them with issues that we saw today, and if you saw what happened, you know, what happened with the portuguese bank, spanish bank, greek bonds, and so i don't think it's a full-fledge element here, but something worth watching, a setback, es

will that push the ecb and to further action or not?iously not now but sooner rather than later? 0 to be honest, it if it is .5% after we saw german and spanish cpi, that would be a surprise at this stage because german cpi went down and spanish inflation went down. todayld even disappoint and that would be an even stronger message to the ecb to consider what next. i think the ecb well, after the decision that they have taken in cut in the main rate and the negative deposit rate. after that, i don't think they will move that quickly but they will clearly discuss what else , ofd be there to do in case course, the economy disappoints but also the geopolitical risks we are seeing heard the european far.my more than it has so they need some emergency toolkit, which i'm sure they will continue building and communicating. >> you think the measures they have already taken will cycle through and push inflation eventually? >> the negative deposit rate also. the timing was quite elegant. if you look at the growth data, september things were gradu

what they could do this time is what the ecb has done europe, provide funds into the system but maket a requirement that the money is used in a certain way. used for capex over twofollowing 12 months or lower employment wages. there may be more incentives to kickstart money in the u.s. .> that sounds great that sound something that may raise the potential growth rate of the united states and something i would want to talk about. the problem is, as we learned last year, the taper tantrum. markets really struggle in these transition periods. we really feel like we are in a transition period at the moment. we are going from the market with incredibly chief -- incredibly cheap money to the tax code lowering unemployment. getting from a to b sounds really simple. you make it sound simple, but it is not. >> the chinese government suggest you can do it well for a few decades before causes problems. let's say there is a bound of confidence they can potentially work with over the next couple of years. it appears to me that the bias is for accelerating growth. there are reasons why -- around t

continuesis the ecb to follow a very easy monetary policy. same for the bank of japan. the fed will and tapering in october and i stick to my view of the first arise will be next march or april. monetary policy in the u.s. is moving super easy to easy and it would not be described as the end of next year close to 1% with a nominal gdp is growing by 5%. that is a very easy monetary policy. the numbers offer a disappointing first quarter the states and weaker dater in and may. april the numbers will pick up and we will see a robust of growth in the developed world in the second half of this year. >> evil will start to adage, -- even we start to hedge, want to go up at some point a user not see that the end of the stop rally? underestimating what the central bank is saying. they have a very clear message. gettingnot seem to be across a very well. the interest rates are going to go up but the pace of increase will be very slow and the increase will be very minor. a raise of 1% by the end of 2015 compared to gdp growth of 3% and installation of 2%. chrissy you mentioned the

the ecb is shrinking its balance sheet.hose things are real issues that we hope draghi is going to continue to address. i don't think he is going to come up -- >> another speech in london to save europe and save the currency. chris got in, thanks very much for coming in. after the break, we had to beijing for details on the annual u.s.-china economic talks. what is on the agenda? how important is this before obama goes to china later in 2014? ♪ >> welcome back. time now for -- well, we are going to go to china. jack lew and john kerry are on the trail out there. it is the annual two day gathering. henry saunders in joins us now for a little bit of an update. why is this year so much more important? >> good morning. this year, it is really a matter of getting over strategic mistrust between the two sides. there have been incidents leading up to these talks that have frayed u.s.-china ties including cyber security territoryver maritime in southeast asia. the talks are very important to try and restore u.s.-china ties to when

the bundes bank president says the ecb needs tone sure rates and not kept too low for too long. speaking at the same conference, he said governments across the eurozone should not view the kurnlt environment as an invitation. the emphasis should be on reforms which promote growth and productivity. and korea isn't the only one concern. president draghi had this to say. >> the exchange rate is a different issue. there, to some extent, there are many factors that influence the exchange rate. and i don't want to dwell on each one of them. the low levels of inflation, extremely low levels of interest rates do have an effect on the interest rate. it was -- if you look at the four months ago, it was higher than it is today. so -- but it's a problem. because as they say, it affects the -- or objective of price stability. >> across on european markets this morning, now into the trading session. we are looking at some losses for the major indexes stoxx europe 600 most major markets are in negative territory this morning. the stoxx 600 tracking lower by 0.1%. but the individual markets are

in europe, you have the ecb with the ltro and other options.me, the market is still very positive on equities. what happens in the september fomc which i think would be more hawkish than the market is the last, if you see two times, the market sold off after qe came to an end. my concern will be around september-october. >> that is not far away. it is kind of tomorrow from an investment point of view. this is tactical. coming up.ig change how much volatility are we going to see? than -- historic. you have not seen this since 1995. it shows you how historically low volatility has been. let's look at it one by one. u.k. gdp numbers at 9:30. 0.6, probably going to be 0.7. we get the u.s. gdp number next week and inflation number and nonfarm payrolls. this is a very important week. when we heard the yellen testimony in the senate, the feeling was that it is getting better. if the data is getting better, then if there is any equity correction -- >> you would be happy to have a little bit of cash on the sidelines right now. put that money to work as

the ecb is conducting a stress test. but the one thing i would like to raise is what this episode currently underlines is one of the problems that we have been -- for quite a while is in the current environment where the economy is still weakish, where the public sign res still weakish, getting these countrie these countries going out of a program, i think that is potentially a risky strategy. what it does mean is that -- is less powerful if something happens. and that, of course, omt, was one of the key things that brought these in the first place. so i think we should not ov overtrauma advertise the situation in pore tu began with one specific thing. but what we should recognize with this situation is a little bit more difficult than it used to be just about six months ago. >> it's a good thing, isn't it? we've had a run of slightly concerning weaker german data, too. we've got noise at the european level, concerns about budget flexibility. people want more scope to invest and what this starts to look like is that the

do you see any big changes on the horizon from the ecb in the second half of the year?uld have to see further softening in the eurozone economy. hopefulmario draghi is there will be a slow pickup across some economies. for aian, let's pause moment and talk about the telecom sector. we have seen a number of takeovers. orange is taking on smaller rivals to take on the lead off consolidating the french market to exit the price wars and we caught up with the ceo. >> i do believe in the french market is a critical size to support 4 operators. am -- i definitely believe that one day we will probably 3, which will to be the case in germany. happen breaking back the french market to three. it would be a positive move for us. clearly, orange is not the best place to play this. not just -- [indiscernible] that moves the most competition. ad and -- we have room to see maneuvers. i hope we are still ready to tackle france and give competition. once again, it is necessary for the consumer and the investor and for the country. e richard of orange. sector.f m&a in that you have wirele

it is an investment for the ecb, which prides itself on security.ontacted the german authorities and are working with police. how they found out, someone tried to sell them back this data that had been stolen and that is how they find out that they had a compromised system on their hands. >> fascinating story. this, theydetails on have our e-mail addresses. we will find out more about this story. hans nichols joining us from berlin. u.s. regulators have lifted the ban on flights to israel's biggest airport, ben-gurion. some carriers say they could still cancel flights over safety concerns over the next few days. elliott gotkine is live in tel aviv. as you say, this is being well received by the israelis that the faa is lifting its ban on u.s. flights. it is up to the carriers as to whether they actually take advantage of that. european airlines, not so keen to fly here for the moment. british airways still flying by the likes of lufthansa, air france, still staying away from tel aviv's ben-gurion airport. curry and and turkish -- korean and turkish

the latest on the quality review from the ecb. we're seeing european markets take back some of the gains from yesterday's session. a quarter of a point lower on the ftse 100. the xetra dax lower by 0.2%. similar story for the french markets. the psi taking back some of the gains we saw in yesterday's trading session. you have to expect a bit of consolidation. trading a little softer for the dollar. euro/dollar trading around the 1.3530 level, right now 1.3525 in fact was the lowest level that we've seen since february the 4th right now. no extended auction from janet yellen yesterday in particular. we also saw a bit of softness in aussie qe as a result of that slight move higher in the dollar in yesterday's trading session. sri has an update from singapore. hi there, julia. the markets did start the day off in fairley good form after that record close we saw on the dow. but one by one, most of them have succumbed to selling pressure. let me start with the shanghai composite. down now by 0.6%. that is indication of some of the loss

we have the ecb meeting thursday.dy remember, may, this secondary rally we've seen over the last two months started with the ecb meeting with them stimulating their economy. any smart investor needs to keep their ear to the ground there, here thursday ahead of non-farm payroll what comes out of that meeting. david: bill baruch. bill, fasten your seatbelts. i have a feeling it has just begun. thanks very much. >>> with today's market rally investors are looking for a stock that may have held back but ready to come back roaring to speed. google may be that stock. after soaring 60% in 2013 the stock seems to have lost its momentum. the tech giant is up only 5% this year after reporting disappointing first-quarter earnings as pressure mounted on its online ad business but our next guest safes google's momentum is about to change. he has seven reasons to for you to buy the stock. jeff reeves, investorplace.com editor. we'll only get through about five of these but let me ask what do you make of today's rally? >> the whole

i think it's mostly really the onus on the ecb, quite frankly.ng, up until maybe 15 minutes ago, there was actually a treasury market sell-off, which would suggest to me that, you know, that people aren't clamoring for more safety at the moment. it's turned around. treasuries are slightly up. seems to be more an international issue than a u.s. issue and now it's kind of, still pushing mostly on the ecb. >> jack, inflation was supposed to be the last nail in the qe coffin, so to get a .6% increase this morning is this the beginning of the end as you see it? >> i think it does put pressure on the fed. i do believe they'll do everything in their power to do nothing. i think we will hear a lot of hawkish rhetoric from the fed and very little action. quite frustrating. on the other side of the ocean where we're hearing a lot of dovish rhetoric. so i would like to see kind of a reversal on the european side of things. >> jack, thank you for that. hate to keep it short, appreciate your time. jack pab ablin. >>> now a halt on sprint. having hit a single

banks and the ecb has come in as a backstop and said they're going to do everything it takes?hey have a very aggressive monetary policy and it's not clear they're done at this stage. >> i love that you're here. 2,000 on the s&p by the end of the year. next year's a long way off but do you think we can continue to make gains in equities next year? >> i think as long as earnings move up at a renal pace we ought to make gains in equities next year. the conditions that end a bull market, which is the fed tightening an economy that's overheating aren't in place at this stage of the game. >> i like people like you that, you know, that go back and they talk about like these huge macro calls that you make. because i want one now. i want a big one so i can sound smart if i go out tonight or something. the also -- yesterday was sitting here with wilbur who is so smart, willler ross and just looking at that euro during the portugal story, looking at where rates are and 1.36 we both just said why is that thing at $1.36. can you tell me? >> the problem with the euro in terms of why it does

the european banking authority and ecb already have some steps in train to help improve the situation there. it's also worth noting the parent company had accounting irregularities that go back to may. so it looks like this was probably a one-off in terms of sants to. people clearly remember what happened a couple years ago. >> i should note we're 130 points off the low of the trading session. now down only 50 points. so we're at technically the highs of the day. what do you do in this market? >> sue, part of what we're seeing is really making me crazy because this despirito santo is systemic of what's going on through europe and we're not paying attention because the erb says we will do whatever it takes to keep everything going. our markets are down 1% off the all-time highs. for all of the shocks with which our markets have been hit this thing is not going down. so we are really believing in the power of these central banks. whether it's the ecb saying we'll take care of our insolvency or waiting and hanging on word from janet yellen. look, you ask me about investments, the market

that even if the fed start moving closer to the exit, the ecb actions could prop up assets. >> stay with we will hear mark carney's views on sterling and trade deficits expanded after exports. ♪ >> back with us is our guest from citigroup. mark carney was speaking yesterday. picking up a number of messages. one message could be that when rates to rise, it will rise gradually. the other message could be look, i am preparing you for rises. maybe not now, but they are coming sooner rather than later. is that what you took away? >> that has been the message for a while now. they suppress the market. the markets are so complacent. since then, markets got the message. in general, i would say the change in tone for the first talkingrk carney was about the towns and the exports that was part of the speech. -- pounds and the exports that was part of the speech. mark carney really became the governor. could be the reason for them to buy some time. more appreciation on the delay. >> it we see sanctions from the eu on russia one of the involves access to the capital markets or to london in general,

ecb pledging low rates for quite some time. mario draghi says policymakers will assess measures taken already. these include pumping money into the block to revive the economy. >> the ecb cannot and should not act every month. while i am saying this, we don't think that our job is finished, not at all. that the council is unanimous in its commitment to use unconventional measures in its commitment to keep interest rates at present levels for an extended period of time. >> we are getting details on how bnp was able to violate u.s. sanctions ahead of that guilty plea this week. -- would transfer friends funds from a sudanese bank. the money would be transferred to jpmorgan without any mention of sudan. jpmorgan has not been accused of any wrongdoing. a chinese chipmaker has struck a deal with qualcomm. getting a fite of its sales from qualcomm. they say they are on the same page when it comes to demilitarization of the korean penicillin. chinese president xi jinping meeting his counterpart in seoul. for disarmament talks and -- >