. >> the ecb president did surprise market to some extent with his announcement of the ecb's version of qualitative easing. 60 billion euros a month in various kinds of purchases, in sovereign debt and asset-backed securities and covered bonds. the surprise came from the amount. there were reports it would be 50 million -- 50 billion euros a month. he said it would last until at least the end of september 2016. depending on how effective it is. 80% of these purchases will be handled by the 19 national central banks and they will be on the hook for some of their own losses. investors did express a lot of confidence in his plan. one of them was the former chancellor -- current chancellor of the u.k. >> this is welcome action from the european central bank. action from a central bank is necessary but not sufficient for a european recovery. we want to see this a company by clear plans to make the continent more competitive to create jobs, to make sure our public finance is in order. we have all those ingredients in the u.k. and that's why our economic plan is delivering strong economic r

that's up to the ecb. politicians that concentrate on what they have to do make their countries competitive and put their countries straight. we still have a lot of work to do. one thing is clear. the decision of the ecb shouldn't take the politicians off the hook. they still have to do what's necessary. >> if we consider as far as the damage done to the euro zone in terms of a lack of structural reform would you agree that certain policy makers, you don want to interfere with the ecb but by limiting monetary policy there's damage done there too. >> i don't think we should limit the ecb. we focus on it and have a full scope of instruments to use and to apply when necessary and that's their decision and at the same time politicians should get on with dealing with their economies and opening up markets and making the labor markets more flexible. all the things we call structural reforms. >> as far as risk sharing is concerned, are you against risk sharing? that does send a message about the willingness of ot

ecb on thursday, everyone will be talking about that. of them is carl weinberg, he will be joining us and we are looking for to that conversation. a few things to say about this. we will get his take on the s&p and what is happening with the ecb. potentially with the way the qe operates and we will talk about the fed and china. then -- it is not a dual anchor show, it is a three person show because hans nichols is at the dlc conference in munich and he will be conducting a bunch of great interviews in the second hour of the show getting at the heart of what is happening and the bigger picture. thinking about the fact that we have over talking about creating huge numbers of jobs. the impact these tech companies are having at the moment. the first hour of show is just fran and i. macro economics and technology, what a great combination. >> i am much more excited about the macro. ecb, the big event and next to that could beat russia, the world's biggest energy producer and is quickly nearing junk. the russian bond blast in full focus. ♪ >>

we have to start with the ecb. on the verge of taking its boldest step yet to fight deflation. ecb president mario draghi may announce massive bond buying program that could exceed $1.2 trillion. it is in that boosting consumer prices that are now falling on an annual basis. not everybody is on board. the plan is been criticized as too little, too late. the head of germany's central bank said it is not needed. in eastern ukraine, the balance is getting worse.

the ecb is independent and has an official mandate anything the ecb can do that's good for the eurozonend good for governments. we are all waiting to see what -- >> is at extending into political territory? the mutual is asian of the qe program is what is up for debate at the moment -- mutual lies asiaization. >> in the next few minutes, we will know to what they've done. whatever action they can take is good for the eurozone. >> you have already indicated that the cheaper euro will have a positive impact on the economy. >> it has been very positive for island. -- for ireland. ecb takes note of these things. >> you would welcome a cheaper euro? >> yes. it is good for our exports and people who visit our country. >> let's wait and see what happens. let's talk about more domestic matters. the bank in dublin indicating that maybe it would like to see -- >> is concern about a repeat of the housing crisis that heartland -- ireland went through. there is some concern that this would limit their ability to enter the housing market. do you support the irish central bank and its objective? we wi

the euro 600 index is trading at a multiyear high ahead of the ecb announcement and even post the ecb announcement this massive bond buying program is expected to fuel equities and result in investors taking on a more risk on approach if you will. something we haven't been seeing. we have been seeing the reverse. investors buying bonds and selling equities. right now, the ftse 100 up about .4%. xetra dax up 1.3%. coming in slightly below expectations in december. the flight to safety not as much in trade today. the 10 year yield trading at 1.4% and treasury note at 1.8%. moving up slightly but still well below 2%. what about the currency space? that being the main story given the response from the ecb. beating expectations resulted in the euro weakening against the u.s. dollar. trading against the green back and right now it did break 113. now trading at 11266. a phenomenal move in the euro. julia. >> thank you seema. the ecb launching a landmark qe program. bigger than expected. markets rallying on the back of the move. the euro lower by the dollar down below 113. mario draghi reveal

ahead of that ecb decision on thursday. the big question is what will mario unveil and will it be enough to revive the eurozone economy? right now we're looking at the euro stocks at 600 index at a seven-year high. gains across the board when looking at euro. >>> but u.s. president president obama set to propose closing loopholes for the super rich in his state of the union address tuesday night. he's expected to target banks in the speech calling for a fee from financial institutions with over $50 billion in assets. the proposals are expected to raise $320 billion over the next decade according to the white house but likely to heighten tensions within the republican-led congress. now over half of the world's wealth will belong to just 1% of the population by next year. this according to the group's data released days ahead of the world economic forum. the charity is hoping to bring the issue of growing wealth inequality to the attention of world leaders and billionaires who are gathering in switzerland later this week, but

draghi and the ecb.ight now manufacturing america and global manufacturing america, daniel ammann is president of general motors. there's all the distractions of rebate this in rebate that. let's talk of manufacturing discussion. dan, why are you in davos? >> we are a big global company, operating in every major market of the world. there's a lot going on in the world right now and also also volatility. we want to understand what is going on so we can adjust our business as needed. >> we talked to general electric the other day. there are many major players. it is a cutthroat business. what is the gm process distinction in asia, europe, or frontier markets? >> where we are taking the company now is reorienting our whole mindset around the customer. starting with the customer and having a deep and profound understanding market by market what does each customer need what does each segment of the market need, then working backup the china make sure we're delivering vehicles and services that meet those requ

that is with the ecb did already. first idea of what it could look like and then the meeting afterward, they follow up with more details. >> the fact that they are going to announce something is already priced in. they are going to have to announce something in size. are they going to hint at the fact that this is going to be big? >> i think right now probably the biggest challenge for the ecb is just to fulfill expectations, to fulfill what is priced in and not to disappoint. i think they will not announce any number, but what they could do is kind of reemphasize or strengthen this intention to increase the size of the balance sheet. i think if they would strengthen this commitment, it could be enough for markets to really believe and make this qe announcement very credible. >> what is your biggest concern? we talked about growth. we talked about your expectations for the ecb. we talked about oil prices. how much of your -- are you thinking about the rise of extreme parties? >> i think that is the biggest risk. just

the ecb has to fix everything because they are the ecb.t is easy for us to do that because we are the only ones doing anything. mario draghi complains that governments have to get their house in order. some of them are structural, close down the barriers to entrepreneurship. some of them are basic government support for governments like greece. some of them are things like easing physical stamina -- easing fiscal stimulus to move an economy out of a depression. the ecb cannot do this on its own. credit -- uroplasty stand together. >> -- europe has to stand together. >> you cannot slam them down. they have taken the pain and they will get their. >> -- get there. >> we have a problem and we are looking at from a number of different directions. we no longer have the fact. the ecb cannot fix what is wrong in europe. we are in the eighth year of a depression and there will be a ninth year and attempt here and prices will go down -- and 10th year and prices will go down. there is no way the ecb can fix this. >> if i am buying something -- is buy

will national central banks are the ecb? -- or the ecb? that will also affect the market reaction. the market would hope for as much monetary stimulus as they can get. perhaps investors have made this mistake in the past. the euro is a political animal. forged together by government will. mario draghi has spoken about not being a politician and he has to be. he cannot lose germany. the bundesbank president has clearly been against several of the decisions. if he loses germany, if the bundesbank turns against him his credibility is greatly limited in the future. it is not whatever it takes, but it is about what is the best he can get and that will create some in the market who will still say, we want some more. there were three rounds of quantitative easing by the fed. they started smaller and ended up with an unlimited package that they ended up shutting down now. they started their buying 2009-2010. >> this is what we know. they were presented with buying as much as 500 billion euros of assets. >> these were staff presentations to the governors, but the governors were asked not to

ubs chairman axel wbeber said he expects the ecb to take action at its next meeting. >> the ecb has already indicated that they would do something. they will not postpone that and announce an action. i don't think it will just be a government bond program. it will be sovereign debt corporate bonds, and there might be some condition on buying the higher graded government bonds in a larger proportion to lower graded. >> we will have more from that exclusive interview later on. >> also coming up, shyer starts the new year with a new deal. after its proposed sale collapsed shire is on the acquisition front. details of that deal, next. ♪ >> welcome back to "the pulse." we are live on bloomberg tv and radio. >> now after a very busy 2014 and an a in the pharma sector is off to a strong start with shire offering more than $500 billion for the us-based nps. here with more is simeon benedict -- simeon bennett. also here is caroline hyde. let's start with you. >> $5.2 billion is the price tag. that is a 10% premium on nps when it closed on friday. this all got heated in terms of reporting in december

if it can, the ecb bought the equity market longer one way. if it can't, volatility will come back. >> for u.s. investors who may be holding bank stocks overseas or banks that have large currency operations and w other day to some of them when the swiss frank made its move should they lighten up on the holdings perhaps or avoid those type of stocks if the volatility is that? some call it a currency war. >> yeah if you're holding that sort of rotate into exporters. you heard about how exciting and should be. it's much more competitive than six months ago. so if you want exposure in europe focus on those companies that have large export activities. they are benefitting enormously from a dramatic move in the europe. >> thank you, mohammed el-erian with ai lienz. >>> defended its currency against the euro and china injected $5 billion into the nax's money markets today keeping commercial banks flushed with cash after china's economy grew the slowest rate in more than two decades last quarter. >>> more international economic news today. but this ti

this is a bet on the ecb. the people doing this were betting that the ecb would disappoint. that's a hard call to make. >> two sides make a mash. it was a crazy thing to do that. we knew they were try to do something big, and they did. >> you talk about as an asset manager, protecting the portfolio, you have a big portfolio, take no insurance on it, and they disappoint it and the market cracks he loses value in the portfolio. >> maybe they don't disappoint, but it's factored in the market. >> that's the bottom line. >> protected themselves big. >> the overall money compared to what's trading every day is small. >> okay thanks guys appreciate it very much. check out the article on powerlunch .cnbc.com, and we appreciate it, guys. what are you doing over there? stop it now. the ultimate judgment on mario draghi -- it's the naked shorts thing, ksh the stimulus news has been and will be the news. sara eisen has where it stands now. >> a lot of shorts i don't know about naked ones. you see it in the euro action. it is plunging we're at levels not seen since back in 2003. this is

does the ecb overshadow earnings?t's a big week for earnings. >> i think we got the answer this week when we saw what happened with the swiss decision to basically unpeg their currency. if that which is actually relatively small percentage of european gdp is going to move the markets as much as it did it would be foolish to think ecb action wouldn't have at least as large an impact. >> the real question is what equities do after the ecb acts and there's every possibility that a lot of the good is priced in and europe might move for a day or two and then the whole thing comes apart. >> i want to bring you in. there's that notion already that because there was a belief initially that the snb had sort of inside information or they got whispered to by the ecb. maybe earnings priced everything in in term of that decision. >> there's a good chance but if you look back over the last two years betting against central bank action hasn't been a great bet to make. if you think about it is there cause or potential for disappointm

it was all about the ecb yesterday. that is what happens to the euro . 1.113 at the moment versus the dollar. down almost 2%. so big moves when it comes to currency. thanks for marriott draghi. big moves in oil. sad news on the back of the death of the king of saudi arabia. he lived to a grand old age. how it is trading on the day. up pops up 2%. questions about whether his brother will continue with his predecessor's policies. also, will they keep their oil minister? big questions but oil markets are getting a boost on the back of the saudi arabia's king abdulla's passing. this is about ecb returning. borrowing costs driving down. italy down. 1.46% italy is looking to borrow on the 10-year. spain able to access the market at 1.3%. germany still less than half a percent. bond markets getting a push high er. a quick look at a few stocks this morning. we have got m&a. it is all about telecom. at least they find a buyer for 02. 10.25 billion pounds. talk talk had been faulted as potentially what would be bought. trading hi

ecb the headline today but secondary acts.on earnings amex ebay you mentioned sandisk quarter. and a lot of analysts coverage. ge with a buy at ubs, 3m same story. >> merrill lynch slashes everything infrastructure. [ bell ringing ] >> a lot of this is energy infrastructure, which we know is grinding to a halt in canada and some parts of the united states. >> there's the opening bell and s&p at the top of the screen. here at big board this morning, low-cost airliner gol. and nasdaq world economic forum annual meeting where joe, becky, andrew continue to deliver the guests. >> jamie dimon interview yesterday where he basically said listen you know what? the regulators are doing the job. >> walked it back. >> walked it back. >> rolled back, walked back. >> i thought he did a very nice job, actually. >> look -- >> pretty strong. >> is he right? i mean to you ever pick up the paper and not see there's some new entity? they ought to form an entity anti-bank entity every state it gives money and they throw things at banks. banks did

a senior advisor to the european court of justice says the ecb program is legal. advocate general says that the ecb's offer to buy bonds for troubled countries does not violate government sovereignty as some eurozone members say. >> in 2012, at the height of the eurozone debt crisis, the ecb pledged to do whatever necessary to save the euro. >> august 2012 the moment markets waited for. european central bank president mario draghi promised to do whatever it took to save the eurozone. >> we would consider taking a -- undertaking further nonstandard monetary policy measures according to what is required to repair monetary policy transmission. >> a few weeks later, the ecb unveiled a plan to shore up the euro by buying government bonds from trouble eurozone economies. germany's bundesbank said the ecb exceeded its mandate, but a senior advisor to the eurozone's top court says it is legal. but it must operate under restrictions. the ecb must state its reasons for buying bonds the bank is not allowed to provide direct financial assistance, and they cannot interfere wit

the news that is out on the ecb according to two euro-area central bank officials, the ecb is likelyqe of 50 billion euros a month that will start in mind. it will go through 2016. the ecb meeting will be starting later today and by tomorrow ecb president mario draghi will be announcing what measures they will be making, confirming these measures. we will keep our eye on the market reaction facet meantime i want to return to davos now. "market makers" anchor erik schatzker is with brazilian finance minister joaquim levy. >> betty bank him at the wider and joaquim levy, -- betty, thank you very much, here with joaquim levy. i want to tell you what betty and olivia were talking about in new york city, that we have learned here at bloomberg that the ecb will begin a program apartheid of easing in march at about 50 billion euros an month, the equivalent of about 600 billion euros a year. brazil has had an experience with that policy since the financial crisis. how will quantitative easing in europe affect your? >> i think it will be alternately positive. the combination of low oil prices

we had to get back to the ecb decision. our team in davos caught up with uk's chancellor to get his reaction. >> this is welcome action from the european central bank. action from a central bank is necessary but not sufficient. we want to see this company by earlier plans to make european continent more competitive. to create jobs, to make sure public finance is in order. we have all those ingredients in the u.k.. our economic plan is delivering a stronger economic recovery. we want to see that in place on the european continent so the whole of europe c recovers. >> coming up, bill gates. stick around. ♪ >> will gates changed the world with microsoft and spent the years trying to change it in a different way. -- bill gates. they released their annual letter making a big bet that over the next 15 years, living conditions of the world's poorest people will improve more than ever before in history. i asked bill gates why he is so confident in making this protection. >> there is a lot in the pipeline, whether it's medicines or

the ecb is already in action. the euro is down spreads right now negative in many countries at the front end of the curve. where's the incentive to go structural when that kind of asset price -- >> it's the only game in town. we practically ran out of room on the monetary policy side. the ecb is the last actor to join in on the qe. everybody else is coming out of the other door because they tried it and did it and they're leaving it to some of us. the question is why is it the only game in town. simply, interest rates, 0. and then you say okay let's go fiscal. let's spend our way out of this. well we did that. already. and we have increased 30 to 40 basis points 30 to 40% debt to gdp ratios. >> so we're more vulnerable than we have ever been. >> so the only game in town the only short-term is the long-term issues of structural change. so we go structural. we go institutional and let's go social also. remember there's a lot of victims or a lot of vulnerable people because of the crisis. there's still very high leve

we need the ecb. we need the ecb to do more.de to move and on the other hand we need governments, parliament to be on board. i have to say, social partners to be on board because, again, they have a decisive role to play. >> all right. now you mentioned, and in my final minute and a half here drop in energy price is a good thing. i'm dplad glad you said than the kilowatt hour in germany versus u.s. it's much higher. but you also talk about disinflationary forces. when it comes to energy which is it why is it interpreted as another part of the negative issues pushing prices down if it's a positive for the manufacturing and economy as a whole? >> well we -- as we have inflation, we are already very low. even before the fall of the price of oil, we had dangerous associated with too low inflation for too long a period of time, much lower than our definition of price stability. on top of that you have the decrease of the price of oil, which is both expansionary for the real economy and disinflationary. i would say, all taken into acc

ecb officials want to revive the eurozone economy. they will have to decide how many government bonds to buy from which countries. they also decided to keep the ecb key interest rate at 0.05%, which is an all-time low. >>> most european leaders support draghi's decision. nhk world's tim west has more from daf os, switzerland. >> the european central bank has launched a bond-buying program in response to increasing concerns about deflation in the euro zone. german leaders had opposed the measure, saying quantitative easing could amount to direct financial assistance for countries experiencing financial crisis. but ecb president mario draghi defied the opposition after the consumer price index in the eurozone dropped below zero, a sign the economy is on the verge to falling into deflation. he said the ecb is responsible for stabilizing prices in the zone. as draghi unveiled the measure, political and business leaders from europe gathered in the swiss resorts of daf os for the world economic forum. experts and political leaders applauded

like the fed here at home the ecb wants inflation back up at 2%. but qe comes with huge economic and political risks, especially in germany. it's the largest and most stable of the 19 euro zone nations. if one or more of those countries cannot repay their notes, germany may have to shoulder the burden and no one is even sure which countries will be getting the most help for now or who will end up having to pay for it later. if nothing else qe european style will be a tricky dance. >> we need the government. we need the parliament to be on board and even i have to say we need the social partners to be on board because, again, they have a decisive role to play. >> our guest tonight says the ecb will likely deliver on a massive bond buying program tomorrow. he is alec young, chief strategist at oppenheimer funds. great to have you here. >> great to be here. >> i guess it's the component of the package that everyone is focusing on. how do you expect it to be allocated and what do you expect it to look like? >> well we've seen a draft proposal that the

especially if the ecb ends up going against quantitative easing. now i have spoken to a number of people. many saying it's drama across the board. somebody saying it's not as bad as what it looks. give it a month or so and you should see some equilibrium recalibrating and taking place on the swiss e trade just as we have seen over the last couple of months as well. back to you. >> thank you. we'll continue to keep our eye on the developing story out of switzerland but also the run down. let's look at the economic data coming out in the u.s. headline prices expected the drop. 9:15 december industrial production and just before 10:00 a.m. we get the first read on january consumer sentiment. joining us now the ceo at tgm investments. still with us is jim o'sullivan. jim given the lackluster data we got out on retail sales earlier this week which economic indicator do you think is most important today? >> well they're all important. i would say for the cpi the core is the most important part. the headlines is going to be down. the core consensus up .10

it's decline after the ecb executive board member told our francine lacqua that the ecb would extendt on inflation is not sufficient. that would be down the road. these comments push the s&p 500 off its lows. the quote here was we will have to do more or do it for longer. we are now only down by four points. for the holiday shortened week the s&p 500 up almost 2% among the markets first weekly gain in 2015. some of the big winners are twitter, up for a fifth straight day. netflix shares also at a three-month high. earnings earlier this week indicated in the company is doing well in its expansion plans overseas and in particular , investors like the projections about internet to growth -- international growth. coming up, eric and steph will share the best moments from the world economic forum. ♪ >> welcome back to "market makers." we are sad to report that it is time to wrap up our demos coverage this year. let's take a look at some of the highlights with the three members of our all-star european team. francine, let's start with you. >> we are sad, but we're happy to get out of the c

ecb. i think oil is the real standout story. >> for me, it is indecision. last year, the participants seemed to have a better handle on the situation. here, they are more lax. >> there is a lot of uncertainty. >> the same for keeley. >> they can't figure out the impact. the pace is what is confusing them at the moment. the oil price has come down so fast. the swiss franc went up so fast. >> that is what freaks them out. >> there are a few black swans flying over davos. it is going to be interesting to get a take on that. south africa's central bank governor is going to be joining us. he is fairly new to the job. 2 "the pulse -- looking forward to that conversation. >> then, we have the eni ceo. this is one of the biggest oil companies in europe. it will be interesting to get his take on where the price of oil is going. we've heard everything from $30 back up to $50 and $60 depending on how much the ceo focuses on the optimism. >> maybe we will end up with both of them. you just don't know.

that is the next ecb meeting.ata, which may show consumer prices recording the first annual drop in more than five years in december because of the sliding cost of the price of oil. how low will the euro go in 2015? >> that has to be the line for the whole of 2015. if you haven't had enough of the latest electronic goods he bought over the holiday season gadget geeks has even more to come. here with all the details is caroline hyde. i saw this article. it has become a little bit of a victim of its own success. >> it's huge. it starts tomorrow. they have to be pouring in 100 60,000 visitors. that's almost double the amount you can crown into wembley stadium. there are going to be more than 3000 companies showing. -- they have to be pouring in 160,000 visitors. they say, we have to rein this in. we cannot expand at the same rate we had. two miles of floor space that people are going to be looking at. drones, robots even connected appliances. everything is going to be there to play with. i wonder how many uber driver

union tonight or the ecb decision on thursday? he says, ecb decision, no doubt. business is taking over davos, switzerland at the annual world economic forum. charlie is there. you know they're taking it over. our own liz claman is there as she has amazing lineup of guests. take a look. >> david, 45 years business leaders and rule minieris found a way to get to davos, switzerland, and the world economic forum. there is no easy way. you drive to zurich and take a two-hour drive up to the swiss alps. once you are here you will meet with 2500 ceo's, word leaders, world-class academics and of course nobel laureates. they are here to solve the world's biggest problems. what are those problems this year? we're talking about global terrorism. economic slowdown in nearly every nation. let me say this much. the very strong swiss franc is absolutely one of the top topics of discussion once people get here. i grabbed some newspapers off the stand here. look at this. the swiss franc, the president of the swiss national bank is calling for calm. francenshock. they have a cart

. >> the ecb first introduced the concept in 2012.nabling purchases of sovereign debt in secondary markets. they are considering whether they convene eu law. this meaning the court will deliver its opinion. >> the court opinion is nonbinding. if it goes against omt, mario draghi might wind his options on easing in the euro zone are narrower than ever. it is a big day for the ecb president. for more, hans nichols has traveled. you are back in berlin. this opinion really is quite important for him and the future of the eurozone. >> we will see. good morning, manus. he'll put on his lawyers cap and sifting through this opinion. i suspect he will look for any guidance that may be construed that could be applied in -- and translated to quantitative easing. restrictions. what sorts of limit would be placed potentially on bond buying programs for sovereign assets? this is key. the fed announced it. they had specific conditions when connotative easing would end. -- quantitative easing would end. that is what we're looking for today. how clear

in some ways, yes, there are numerals that the ecb -- there are numerals at the ecb. major one they put out. maybe the idea that will be more regulation isn't necessarily surprise come up but the actual shape and contours of those regulations -- they have been kept pretty well under wraps. our team in frankfurt has been trying to seek them out and today they got one. >> thank you very much ,indeed. the banks are big theme running through the markets. they have been over the last few days as particular attention is paid to what has been happening in greece. what does today look like? let's find out with jonathan ferro. >> a busy morning. money supply data a little bit better than expected. quite a conditions office adjusting -- credit conditions also a bit better. positive territory in italy. the dax stay positive. the ftse is down. i will show you why. have a look at some of the majors. shell out with earnings this morning missed estimates. a big cut to spending. $15 billion over three years. shell is lower by 4%. the big headline in the european equity market has bee

i think it is a big relief in frankfurt for the ecb. nothing can stop them right now. >> is this going to be -- i guess we are dealing with nuances. nothing can stop the fact that we are likely to get qe from the ecb. is there anything in this that vitamin can latch onto? is there anything they can use to maybe limit the scale and scope of the qe that we are likely to get? >> honestly, just browsing through the text, it looks like a green light on all aspects. they more or less give the green light to do whatever the ecb wants to do. this is what qe will be about. qe will be about finding deflation. this is a severe issue for monetary policy. i think they got a big backing from the european court of justice. >> it is a nonbinding opinion but advisory opinions such as these are usually followed by the court in majority. we also heard from mario draghi in the paper saying he has to do monetary policy for 19 countries, not one. this is directly addressed to germany. how much are we going to get in terms of qe from the ecb next week? becaus

the you think the ecb can disappoint this year? >> i think there is a risk because of market expectations it will be hard to surpass those expectations. certainly that is a risk in our view and you have to look at inflation numbers as well. very low numbers in germany last week and we are getting those deflationary pressures even after the fall in the euro and it is likely they will have to do more. >> we will talk about that after the break. we talk commodities, they are getting crushed. wti drops below 45. morrison, the ceo will step down. a little bit of a slap in the face for him. wmo morrison climbs on the back of that news. up next, inflation and commodities. stay with us. ♪ >> it is time to talk about commodities getting crushed. look at wti over the last couple days. wti hitting $45 a barrel for the first time since april 2 dozen nine. -- 2009. andrew, everybody talks about oil but all those things are trading lower as well. when you look at this on a net basis, is this still a positive? >> we looked at the oil price move a

but still, of course far below the ecb's target of 2%.the managing director, ahead of institutional portfolio strategy. andrew, good morning to you. thanks for joining us. let's kick off and discuss a little bit about those eurozone inflation numbers. should mr. draghi be focused on the headline number or the core number? if oil price res the cause of dipping below 4% should he act still? >> yeah, good morning. i definitely think oil is having an impact on the overall inflation sector here. most central bankers will tend to try to look through that and tend to focus on the core numbers. we've had a partnership tugz drop in oil that is dragging down overall prices, putting pressure deflationary pressures out there. i think it's one more quiver or one more reason why the ceb will get one step closer to being more aggressive here. certainly they have on clear some hurdles in terms of the decision in about a week or so from now. in the month, it is setting up for the ecb to be more aggressive. >> exactly speaking the u.s. markets look for att

if we get better wage inflation and ecb qe, i think bonds go lower. >> we did get ecb qe. continue to fall. what is the move now? >> i've got to tell you, we were talking about volatility before. the volatility in tlt, morning draghi introduced, the tld was trading at 131 and today 135. that's a massive move for a bond etf. this trade is down 50 cents. i specifically look to march, because i want some other things to play out here, jobs data and a fed meeting next week. to me, i think you stay put here. i think the strikes are the right strikes here. i like owning this march 130 put. >> what do you think? >> we made record lows this week in the 30 year treasury. ten years bouncing around at 18. i think it is a money flow issue, an issue spread versus blends. it is tough for u.s. rates to move higher when the rest of the world is so much below. >> i think that's the biggest point we need to -- we look at low rates and assume, they can only go higher from here. don't forget, the ten year was lower than it is right now. there is room for those yields to drop further. when you

where's that announcement from the ecb? minute we hope the to get that announcement. let me explain. hello there, yes, the european central bank is as we've been mentioning, expected to announce it will inject up to $1 trillion into the ailing euro zone economy. in seconds, in minutes, the ecb could purchase government bonds, tell tens of billions of euros, every single month, until the end of 2016 double the amount i guess, that was previously expected. three major economies have carried out qe in recent years. and we know what it is. we've got the u.s. the uk and japan. let's take a look at how well all of that worked out. because in america, the federal reserve, they bought u.s. bonds, u.s. debt basically, worth $3.7 trillion. they've been doing that or have been doing that since twagt. the u.s. central bank said in november that it would end its program, was its targets for inflation and reducing unemployment were on track. they were on track to be met. so in the uk, it's estimated by some that about $570 billion worth

the ecb did meet this week. officer of standard & poor's will talk about a massive week for the eurozone. that is next. >> time for today's company news. is the travel misery for eurozone customers finally over? they recover. british infrastructure specialist john lange could announce an initial public offering as early as today, valuing the company at one billion pounds. that has been announced that john mine group will proceed with the primary offering on markets. the italian luxury suit maker is tearing up its budget after the y unexpectedly removed the cap. the chief executive will meet the managers today and review everything from the size to reising. -- pricing. he told bloomberg that about the wake of that move. >> it came unexpected. i think it's a little bit disruptive. it is of concern. our costs are going to go up. i think considering switzerland is strong, i think they will suffer. >> we're going to head to munich, where hans nichols is joined by the technology companies. stay with us. ♪ >> 50,000 ne

they're coming from an ecb member and the central bank governor saying that the ecb welcomes the european court of justice opinion that we had this morning. he said he was confident that the ecb was acting within it's laws saying it would always comply with eu law and repeat the things we heard earlier today. omts are ready and available and that when asked directly whether the opinion has implications for qe and he says the court opinion is limited just to omt. that's an important distinction to make today. of course markets have moved positively following the decision we got on omt from the european court of justice and making prospects for quantitative easing more likely but the decision doesn't relate directly to quantitative easing. >> the european markets are now trading lower so we saw them move to the upside initially after the top judges in europe made those statements that bond buying is legal and necessary but since then we have been losing steam here. the real trade that investors have been watching is the euro dollar which is trading at levels not seen since it was launched i

bonds held by the ecb. of the strategy is they say -- >> marcus thank you for joining us. we believe it there. we look forward to the results over the weekend. >> the davos spectacular continues. let's go back to francine and guy. >> we spoke to one of the biggest companies in the world in terms of advertising. now we are talking telecoms. it's exciting. thank you for joining us. there is a lot going on in telecoms at the moment. we heard about a big deal announced. you have sold your u.k. assets. give a sense of consolidation opportunities. where do you want your company to be a year from now in terms of alliances? strategic as well? >> we are a european telco. 90% of our revenues come from europe. europe is playing the game of consolidation which is great news. we have seen the u.k. situation with this convergence move. we have seen some convergence and consolidation in spain. probably we are in the process of requiring -- one of the big providers. we want to be stronger in convergence also in spain. ther

nasdaq up by 3. >> the ecb is the talk of the down here in davos. larry summers, and goldman sack's gary cowen all sitting on stage together. expectations of a bond buying program in europe already had an effect. she points to currency and where the euro is now countries around the world are already engaged in a currency war in an effort to boost growth. >> press andrew is supposed to give a press conference later today about the sex scandal he's involved in. this is what people are really talking about here. >> we were 100 billion a month qe. >> at one point, yeah. >> they're doing 50 billion euros. >> that was money at one time. >> what was that? probably 63 or something? >> yeah among the biggest questions in europe right now is the fate of greece lots of talk about a potential exit from the euro zone. now a snap election could put the country's bailout -- what's today's date? >> the 2 -- >> isn't it the 25th? >> 22nd. today's the 22nd. >> i thought it was saturday. >> i think it's the 25th? michelle knows. that's why our international correspond

ecb qe at this stage is not going to add a lot and the main effect of ecb qe is on the exchange rates what we see. it is an attempt to drive the euro down which has been fairly successful in terms of speculation about it. that is it. it is an old-fashioned currency war captain. >> remind us what we should be afraid of in terms of deflation. one of the board member saying yesterday we have to not take too long and take deflation risks very seriously. at the same time, he and knowledge were lower prices that he acknowledged we need to look -- he acknowledged lower prices were we to postpone this. >> you look at charts regular declining prices and strong economic growth and falling prices mainly reflect a big decline in commodity prices asked -- as productivity. there's absolutely nothing in that sort of price decline which is going to hold back economic growth. if you look at that history, monetary history, you have long periods where prices are falling. and you have had very good economic background against it. >> brendan brown, thank you. he stayed with us. 20 minutes past. ♪ >> and

what if the ecb does nothing? they have driven the european currency to $1.15. liz: you back it up and say having tried to suppress your own currency is not a great move. it wasn't transparent. in fact, literally 24 to 28 hours before they unpeg currency, they said they weren't going to. so that's not good behavior. >> right. liz: peter, i need to look at nymex right now. to see there is next to no spread between what we trade here in the u.s., which is west texas intermediate and brent? there is nearly no spread at this point. it's been trending that way. i just read a report, brent could be at $31 by the end of the quarter. we'll see a big drop in crude in the u.s.? >> i don't see anything changing with the supply or demand situation. the currency situation today definitely strengthened the market. look at wednesday, we went up to $51. option expiration, people covered options of being long in the money pit, and we fell long and had a 46 handle by the end of that day. when we get strength in the crude oil market, we can fall apart hard at any time. liz: starte