is this panic from the ecb? paul: it is a more extreme reaction than the market was expecting, but we know draghi likes to be ahead of the market, and he certainly delivered by pushing out the time horizon for the ecb keeping rates at current levels, and also announcing the tltro now. some of the details of the loans for banks slightly disappointing. looks like the rates banks might be able to get will be higher than the existing loans they have, so that is one negative. a longer and more depressed yield curve not good for banks in terms of transformation in the loans they make. at the same time, the banks have got this whole scandal about the money laundering going on, and that is only escalating and starting to weigh on investor sentiment as well. you've got three bad things going on for banks all at the same time. that has left investors kind of cautious on the message coming from the ecb on top of, as you've been highlighting come of the outlook for inflation and growth. vonnie: mario draghi said the ecb rea

i am here for the ecb meeting.n central bank to cut fairly drastically its growth expectations as well as its inflation forecast. the question is, will it start again, and for how long? and for how much?

ecb day comes the day before jobs day. the presidentbs, convened his new advisory board at the white house yesterday, getting together big ceos including tim cook. he made a little mistake about tim's name. >> you've put a big investment in our country. it, tim apple. david: he's named his company after him. why doesn't everybody? alix: i would like to see somebody who speaks in public who hasn't set the wrong name -- david: i've never done that. alix: he's saying we should make the phones here, bring it back home. him,: lou dobbs went after saying you are too close to corporate america, cuddling up to corporate america. alix: really? david: and they are very tight. alix: maybe we are looking at a change to the volcker rule. it feels like the things he's coming to say are more appealing to his base. interesting. happy ecb day, guys. a bit of softness in the equity markets. s&p futures down six points. the conversation yesterday was all about those transports, the nine-day losing streak, the worst in decade. tol draghi be d

all of these things there is very little the ecb can do about, so even though the ecb is doing whatevercan do and throwing all its might behind the economy, it might not be enough. is starting to tie the hands of his successor. is that a problem? guest: you see, i don't really see it that way. if you look at particularly the forward guidance, they have now dropped a hint to the summer of 2019, and now they say rates are going to stay on hold until the end of 2019. draghi's last meeting is in october, and there is only one in 2019 without him, and then we are in 2020 already. i don't think the forward guidance is tying down a successor all that much. , there is the tltro's a key difference in the design. these are going to be indexed to the prevailing ecb rates, whereas the previous one were fixed rates. tltro's will go up with them, so the ecb is not really walking away from their tightening they have built into the forecast, so i don't think he is tying the hands of his successor. guy: is there going to be a mini credit crunch in the middle of the summer? september.cks in what happens

if it's cable, you have brexit if it's euros, you have ecb. you know, if it's cad, you have growth there there isn't anything else that makes you want to sell the dollar >> well, very clear message. thank you for joining us this morning. richard kelly, head of global strategy td securities >> for more insight on what you can expect from today's nonfarm payroll figures, head on-line to cnbc.com you can get the white house reaction to those nfp figures today when the u.s. national director larry kid will he tune into that interview at 15:30 central european time. >> getting back to some of the top corporate stories of the day. luxotic -- after the eye wearmaker reported a fall in full year profit and delayed its investor day these numbers represented the company's first results as a combined entity. essilorluxottica said it would create 600 million euros of synergies within five years. >>> finland's outgoing prime minister said the decision to step down was a personal one thanks to a failure to reform the country's health care system prime minis

yield had diepd to a five-yeek low while the two-year touched a seven-month trough ahead of today's ecb meeting. that's ahead of expectations that it could signal a new round of cheap bank loans. as can you see beside me in temz of where the yields are trading, the german ten-year currently flat on the day. over in italy, the key mover this morning, we did see those two-year yield drop to the lowest levels since the coalition formed right now the ten-year is currently trading about seven basis points lower in terms of price at that 1 01.66 level. it will likely keep guidance on interest rates unchanged we are joined now from frankfurt with more in terms of what we can expect from today's ecb meeting. anetta >> well, actually, that's probably all we can expect some more information about what they think about a new round because the current is expiring, and the big worry is that a peripheral banks need to get it refinanced, the amount of loans they currently have from the central bank, and that could cost them a lot of money or could actually even be impossible for some banks in the peri

i am surprised the ecb does not sound concerned about it. nejra: how does everything we heard yesterday impact the way you allocate credit in europe? henrietta: i think what the market is grappling with is prolonging the cycle. as a result we have had a nice rally in terms of equities and spreads yesterday. it has been softer the last couple of days, but the market in terms, where are we of the credit cycle? arguably you have not had the excesses in europe that you had andhe u.s. in terms of m&a shareholders from a behavior. investors are questioning where we are in the cycle, and what that means for portfolios. we are making sure we are focusing on companies and their balance sheets, and use this yield environment to extend their maturities and have proven access to the capital market. nejra: final question, in terms of the overall stimulus, bloomberg intelligence and the economics take on it is that drawdy has not offered any new mario draghi has not offered any new stimulus. janet: they pushed about their rate hike guidance, and markets h

let's begin with the ecb. what do you expect?the key thing for us to toch will be any revisions the projections on growth and inflation. they look high in terms of expectations for 2019, given the recent growth weakness we have seen. they have projections of one point 7% for 2019 versus a consensus of roughly 1.3%. thatarket will we watching to see how the ecb is thinking. there is expectation about an announcement or further news on the banking sector. it is a big meeting. ecb are unlikely to maintain a more dovish bias. european andhe mystic economy, is -- and domestic economy is we some strength at almost precrisis loads. that largely points back to china. the ecb will have to make and extends to which they think are longer-lasting. jonathan: it has been going on for a while. mary: in terms of how the ecb will come our next week, they continue to be patient like the fed. what tools they have additionally i am not sure. toend to agree that we need look at where the revisions are for growth. jonathan: the ecb has tried to be pat

i am here for the ecb meeting. we expect the european central bank to cut fairly drastically its growth expectations as well as its inflation forecast. the question is, will it start again, and for how long? and for how much? anna: huawei sues america. the chinese smartphone maker ups the ante. it says washington should not play judge, jury, and executioner. some employees in new york and london could receive zero payouts. and the investor who has made a career out of exposing corruption files a criminal complaint against a swedish lender. good morning. matt: let's take a look first off at the markets this morning. after asian equities sell this morning, we have seen futures here in europe as well as the u.s. pointing to a risk off session as well. not huge drops. last i looked, we saw dax futures and ftse futures down about 0.4%. we will check where they are right now as well. here you see dax futures down more than 0.5 percent. ftse futures also down about 0.5%. consistent with how they have been trading. investo

ultimately, the ecb are unlikely to maintain a more dovish bias. is uncertainty in the external environment. the european domestic economy, we have seen strength, particularly in the consumer sector with unemployment almost at precrisis lows and wages heading higher. the external factors largely point back to china. the ecb will have to make and extends to which they think are transitory or longer-lasting. jonathan: it has been going on for a while. hard to college transitory. -- call has been going it transitory. mary: it has been going on for a while. in terms of how the ecb will come our next week, they continue to be patient like the fed. what tools they have additionally i am not sure. i tend to agree that we need to look at what the revisions look like for growth. jonathan: the ecb has tried to be patient for the last several meetings and that patients has been paying off. but they've got to do something, unlike the fed, the growth is decent in the united states, it is terrible in europe. greg: it is true and they do not have a lot of tools l

the final spread, the week ahead including a rate decision from the ecb.us shifting to mario draghi. this is "bloomberg real yield." ♪ jonathan: this is "bloomberg real yield." it is time for the final spread. coming up over the next week, china's national people's congress beginning in beijing alongside that is the central bank decisions on interest-rate with a spotlight on the ecb. we will hear from mario draghi and governor carney. plenty of fed speakers and capping it off, the main event. the u.s. jobs report. still with me, greg peters, mary bowers, and jub hurren. jub, what are you expecting from frankfurt next week? jub: the key thing for us to watch will be any revisions to the staff projections on growth and inflation. they look high in terms of expectations for 2019, given the recent growth weakness we have seen. they have projections of around 1.7% for 2019 versus a consensus of roughly 1.3%. the market will we watching that to see how far that number is revised down to see how the ecb is thinking about normalization of policy going forward. the

coming up, a decision from the ecb. focus shifting to mario draghi.is "bloomberg real yield." ♪ ♪ i'm jonathan ferro. this is "bloomberg real yield." time for the final spread. in the next week, china's national people's congress in beijing. a slew of central bank decisions on interest rates, with the spotlight on the ecb. we will hear from mario draghi. we will hear from governor carney, too. capping it off, the main event, the u.s. jobs report. still with me are mary bowers, greg peters, and jub hurner. let's begin with the ecb. what are you expecting from frankfurt next week? jub: the key thing for us to watch will be any revisions to the staff productions on growth and inflation. they look a little bit high in terms of expectations for 2019, given the recent growth weakness we have seen. they have projections of 1.7% for 2019 versus a consensus of roughly 1.3%. the market will be watching how far the mark -- the number is revised down to see how the ecb is thinking. there is expectation about an announcement or further news on the banking sector.

hints are going to emphasize the ecb is dovish, downgrades to the forecast is also a dovish ecb.ncertainty is they are not going to change their forward guidance at this point. what they are going to be doing now that we have the new chief economist, we know who the new chief economist is, we now know who the new president is going to be. we have a leadership change coming up. that could mean all the policy tools get reviewed. the insufficiency of each one can get reviewed. that could mean uncertainty for the market. nejra: i'm getting chatter in my ear from the newsroom. the director needs to sort my audio out. let's talk about rates. you are talking about the fact we could see a bit of dovishness. what do you expect to happen with the deposit rate? >> i do not think the deposit rate can go down. i think there was a good risk the deposit rate goes up. it is not an obvious conclusion to come to. it's all about something which is called the reversal rate. it's got a lot of commentary in japan. being from a japanese bank, i understand this better than some others. the head of the b

much more coming of course the ecb.including the important draghi press conference. stay with us. this is bloomberg. ♪ tom: bloomberg surveillance. in london. i'm tom keene in new york. there's that seen in the classic mary poppins where the weathervane changes. that happened yesterday. , the trade deficit was on the cover of every single paper in america. -- is theve time mercantilist president going to actually listen to lighthizer? >> no. the president campaigned on the notion of decreasing trade gaps in the data just points otherwise. i was speaking with some republicans. that doesn't sit well with too many conservatives that i speak with. is the president -- is there any overation given the uproar the biggest deficit in 10 years that he will reset? >> i don't see an indication of that or it the white house says this isn't the end of the fourth quarter, this is not even have time. they say give the president more times -- time in terms of negotiation. isn't that much time between now and the start of the 2020 electi

nejra: let's talk about the ecb, then. you are at the ecb and watchers conference.issed its chance to normalize before the next downturn? well, i don't know the answer to that, and i don't know that anybody does. i think there is a risk, and i have been worried about this for years, that the sort of andaordinary actions unconventional policy that the fed and central banks have taken during this crisis have been around too long, if you will. i think we have to be careful that they don't become permanent , and i think that has a lot of risk to our institutions and ability to respond in the future if need be. i don't know when the next recession will come, it probably will at some point, but we are not very good at forecasting them. i think the best advice is to be prepared, and put yourself in a position that allows you to react if and when it is necessary. nejra: you have talked about the ability of central banks to react in future. have negative interest rates been worth it? charles: i think that's a question that the jury is still out on. some other, sweden, countr

draghi says the ecb slashing its growth forecast to 1.1%.hen this new round of long-term targeted refis they did not do what a lot of people hoped they did, which is pop this bubble. >> look, i think reform is so urgent i think there's just way too much emphasis on some sort of monetary policy, not nearly enough emphasis on the kind of work force we have in this country. capitalism needs to make a rebirth. he didn't attack nationalism socialism is just not working with the subtext you can give the banks all the money in the world but what good does it do to expand if the government is going to constrain you? how do you grow if you know you can't fire they've really got to get away from that. i think he knows that. he's trying to do everything he can. this is back to the malcolm x days by any means necessary. i feel for him he's going to keep rates down. as long as he keeps rates down, what can i say it's not what we want. >> they're going to suffer the most at the same time they're the supposed transmission mechanism for all of this. the ban

ar behind is the ecb how many mistakes has the ecb made in terms of policy formulation? could this be an area where we could see some change? guest: you could. in my opinion, the real mistake is the fact that there is no fiscal, regulatory, or trade policies on the other side. there are limits to what monetary policy can do, and i think we are finding that with qe in the united states. i think you are seeing that globally. monetary policy is largely there to prevent bad outcomes, either too high inflation or deflation. economic use it to get -- it is a very blunt instrument. you can't use it to get very blunt economic goals -- very broad academic goals. the ecb is going to be in the situation indefinitely. europe is starting to look a lot more like japan. i think the ecb can help at the margin, but frankly, you are not going to get strong growth in europe without structural reforms that provide the basis for capital formation, and my opinion. vonnie: you said the fed made a mistake, and it is looking more and more like that now. fedhat is the case in the believes that, t

ecb willuggesting the deliver tomorrow. volume today.ent this is bloomberg. ♪ this is bloomberg. ♪ ♪ guy: from london, i guy johnson. vonnie: i'm money quinn. let's get a check of global markets and where we stand. here is abigail doolittle. abigail: there has bit -- there has been a risk off tone. atking at the s&p -- looking the s&p 500 at the dax, both are down, on pace for the worst seven sessions of 2018. investors searching for clues as to what is next. we are seeing a bid for bonds. it is suggesting we could see more of a pullback for the s&p 500. he trades off the global flow dynamic. and we have u.s. bonds rally as well. oil is not rallying, down by 1%. this chart suggests we could see weakness ahead of -- we could see weakness ahead for the s&p 500 if the bond does not strengthen. this is before the huge period of volatility. warned is looking at oil -- orange is looking at oil. both the s&p 500 and oil is down. still and a bear market. if the lower round would correlate to $55 a barrel, should break if the bears

hurt u.s.he ecb news equities? we are already looking at a dollar index up 5% or 10% year-over-year. the euro makes up the biggest weight in the dollar index, so that is no small factor. investors will be looking at first-quarter earnings is to -- first-quarter earnings season for signs. joe: this idea that the u.s. economy is fairly strong, but there are significant headwinds from abroad, it could be said s.e many period where the u.s. is looking the best but in the rest of the world, there is some problem. is there something different where this could take it down further, or is it just a tail risk? alec: i think you are right, there has been a long-term theme of the u.s. being the best house on a bad block. what's different this time is that the comparisons for earnings are so tough because 18 was so great. right now, the consensus numbers and that isr or 5% with a lot of hopes about a rollback on tariffs baked into the cake, the news out of the ecb is maybe telling people things are weaker than we thought. i ar

ecb extend that could the headline says the ecb lowers growth rate enough to warrant those new loans.. i want to check out what is happening. david: if it were washington i would say that sounds like a trial balloon, but maybe not. alix: the euro-dollar has been -1.14.bound, 1.12 we will get back to the trade deficit. a quick thought on this? dean: the ecb is likely to put new tltro's in place. do they do it this week or in april? i do not think this is shockingly unexpected. alix: just look at that lower growth at the end of the day and the result of that. dean: they're likely to extend their forward guidance for how long rates will be on hold this week or in april. david: let's bring karen murphy back in. let's talk about -- carol murphy -- kara murphy back in. years and that was when we're importing more oil. it is getting worse despite the fact that we are not importing oil anymore. isa: it is true and it interesting because the trade deficit is not a great forward indicator of the economy. before trump came in office, nobody focused on it that much. the reason it is important tod

there is a big conversation obviously going on within the ecb. not everybody is on board yet, theit is shifting toward point where they are probably ready to add quite a lot of stimulus should the need arise in the next few weeks. a yield curveve that is inverted and fears of a recession. should credit be doing well in this kind of environment? should credit spreads be tighter? doesn't that make sense for the story? mark: in terms of the recession risk, just because it is a negative yield curve, it can mean the recession is still a very long way off. he could be 15 or 18 months away but people are starting to get a little worried. you need to be a lot more selective. you have the high grade credits that will probably start to perform a bit better. anyone who is on the weaker into the scale will come under a lot more scrutiny because their effect -- is there a risk of serious slowdown, it could hit be in double be credits more than a and aa. you are likely to see a lot more volatility within the credit space. if you looking just at the high in sec

[applause] anna: that was the ecb president mario draghi addressing the ecb in frankfurt. he finished on an interesting line. the ecb is not short of instruments to meet its goals. other interesting lines. in terms of how weak the economy is, the economy is relatively resilient. there is risk to the downside. he also talked about some context. the soft patch does not necessarily foreshadow a serious slump. that is interesting in terms of the extent of the downturn we are seeing in the euro zone economy. he also says the economy will respond to any change in the inflation outlook and the ecb may need to mitigate the side effects of subzero rates. he certainly was suggesting there were positives in regards to have a negative interest rates. he certainly reiterated that. he went on to say that the ecb may need to mitigate the side effects of subzero rates. this means something on the cards that can make things easier for the banking sector. many in the banking center moaned about interest rates. he did and with a nice line about the ecb of instruments to reach its goals. a lo

the retreats by the fed and ecb won't be affected. because there is an effect it will not be affected, that is one reason why yields have gone lower. matt: starting the end of last year, the market was already pricing a rate cut before we came in here today and now they are pricing two rate cuts. i happen to think that is a mistake. the market is overreacting here. nonetheless that is what the market is saying, fed policy is not -- jonathan: you think the fed has another hike in it. matt: it has to do with the fact that this is a center of manufacturing cycle, inventory cycle running through starting with the tariffs and caused distortions through the inventory channels. we are getting weakness getting it right now. if people worry about recession, we have got it. it is bottoming now and will lift off. the underlying consumer is strong, and we will see lift off. i don't think inflation is really dead here. jose: looking into q2 -- q1 was affected by the trade wars and the government shutdown, weaker data below 1%, maybe half a percent

true toly, the ecb, their form, are likely to maintain a dovish bias.on the european particularlyomy, in the consumer section unemployment, almost a precrisis , the slowdown has really been a next journal factor. the ecb will have to make an assessment about the extent to which they think the slowdown is going to be more longer-lasting. going on it has been for a while, hard to call it transitory. ecb willms of how the come out next week, probably continuing a little bit patient like the fed. what tools they have additionally, i'm not sure. again, i tend to agree that depends on. jonathan: the ecb has tried to be patient and that patience is not paying off. states, it'snited terrible. >> it's true, they don't have a lot of tools. other than what the bank programs. thatthey do have is china, has a much bigger impact on europe than the u.s., for example. the one thing we learned last the trade war in the slowdown in china actually had a bigger impact on china. they ultimately sit there and wait for the stimulus to start working. do they have that option?

is the ecb really credible here?> a fourth day of declines for the s&p and dow, the seventh drop in eight days. >> we came into today with anxiety about global growth, weaker chinese and european data over the last few months. in that context of anxiety, the ecb came out, panic is too strong a word him up at the markets reading this as respiration. euro weak, and dollar strength is negative for u.s. corporate earnings. >> chinese trade slumped, exports and imports falling. stocks fell the most in 2019 today. >> the trade data was worse than expected, even allowing for the distortions over the china new year. it is a poor set of data, also reflected in the german factory orders. there is a clear link towards week production figures in germany. there are people that want to take money off the table. >> the big story today is the payroll report, 20,000 the top line in terms of workers added. that was well below estimates. wages continue to push higher. >> robust january, february lousy come the underlying trend is 190,0

the ecb andeason, fed are pretty much both on hold.t is because of different issues, but they are reacting in the same way. it will be interesting to see what the ecb does next thursday. from a central bank point of view, we are not getting a lot of action. will a change? -- it change? possibly. that wetegists believes will see the volatility story going lower, so volatility will continue to be crushed, but then he thinks you may start to see of bouncing back at the back end of the year. you can find the chart at gtv . vonnie: i love how both of you ignored my instructions that it was friday and we would have fun. they were both very serious. i will award a tie. you have tied today. coming up, balance of power with david westin. he will be looking at lyft as it is filing for its ipo. that news out in the last 20 minutes or so. $911 million of a loss was reported on $2.2 billion revenue. it is one to follow. we will be diving deeper in uplance of power," coming next. this is bloomberg. ♪ david: from bloomberg world headquarters in n

the ecb and the conference. that conversation is next.s is bloomberg. ♪ ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." coming up, we begin in china as the development forum kicks off. apple plans to launch a video streaming service. central bank officials and academics gather in fragrant -- in frankfurt for the ecb watchers conference. we will hear from president draghi on thursday. and trade talks as ustr, lighthizer and secretary mnuchin travel to beijing. luke hick more, let's begin with you, the worries in europe and what president draghi and do about it. we have a market and group of investors willing to look through signs of weakness in china because there is a belief the chinese can address it. the back end of this week has ended with dreadful european data. the market is sensitive to it. why? luke: we have been looking for a turnaround in the european data that will be later than what we are seeing now. i had hoped we would turn the corner in terms of economic data surprising to the upside. how much of this is sh

around 113 ahead of the ecb meeting on thursday.the dow, and the nasdaq willem >>> well, france's emmanuel macron has made an empassioned plea for european renaissance ahead of may's e.u. elections. in an op ed published in eep of the 28 european member states, man roen said the need for european unity has never been stronger since world war ii. he went on to list a number of e.u. reform proposals including the creation of an agency to safeguard elections from foreign melgds meddling as well as border security and asylum office >>> italian finance minister has said his country would benefit from a new form of liquidity financing from the ecb during an event in milan he added that a budget adjustment would not solve rome's high debt problem. e.u. officials have criticized the italian government over its expansionary government after the e.u. commission cut rome's growth forecasts to the lowest level in five years. now, speaking exclusively to our colleagues at class cnbc, tria addressed investor concerns about the italian economy. >>

the ecb will provide inspiration when it makesers its decisision in 20 minutes. mario draghi is going to be watched closely. popound and the dollar sterling. toht tends to move as reeard projects on that subject. sterling is down slightly against tte euro. >> it is theeend of an era for thooe who remember going to rent a video. >> i assume you a and i f fit io tttte categogory. b blockbuster store will% be in the u.s. state in oregon. the second last in western australia is closing at the end of this month. hadears ago, blockbuster 9000 shots around the world. they filed for bankruptcy protection in - [male narrator] coming up on reel south. after r local repoporters uncr decades of forced sterilization. - [begos] i thought i've never heard of this, this must be wrong. - i am a victim of the eugenics. i was sterilized at the age of 1414. - [male narrator] ] lawmakers from both s sides of the aisle join the fight for justice. - we're the ones that perpetrated this hideous crime, we ought to be the ones responsible for it. - [malale narrator] next in the state of e

academic gather in frankfurt for the ecb watchers conference.r from president draghi on wednesday. and trade talks as ustr, lighthizer and secretary mnuchin travel to beijing. our guests are still with us. the worries in europe and what president draghi can do about it. what is curious to me we have a , market and group of investors willing to look through signs of weakness in china because there is a belief the chinese can address it. the back into this week ended with dreadful european data. whenever we get dreadful european data, the market is increasingly sensitive to it. why? luke: we have been looking for a turnaround in the european data that will be later than what we are seeing now. i had hoped we would turn the corner in terms of economic data surprising to the downside. today's data was awful. how much of this is short-term stuff in germany, one off, that should roll off? if we get anything from china that is good news, i think it's a good sign for europe turning the corner. it will not be exciting growth but any growth in germany, th

the ecb adding to those woes. bonds rallying.rean notes with the yield dropping nearly 10 basis points. continuesin debt across bond markets. when it comes to the equity space, the nikkei 225 leading losses in asia, off by .9%, falling for a fourth straight day. in seoul, we are seeing a sixth consecutive session of losses for the kospi. hsbc urging caution around korean equities, saying they are among the most overvalued markets and lowering korea to underweight. in sydney, aussie shares retreating from a six-month high . the asx 200 off by .6%. flipping the board to check in on some stock movers across the region, i want to highlight, want to highlight this company. it is down by 9% after widening its full-year loss. it is hoping to boost its capital base. the guidance was whiter than the average analyst estimate when it came to that loss. something as much as 7.1%. this as dividends missed market expectations on falling refining measures. we also have kakao on the radar, 2.4%. it is seeking to list shares in south korea. sophi

ecb?s panic from the >> it is more extreme than the market>> was expecting, but the mario draghi doesn't like to disappoint. he has delivered by pushing out the time horizon for the ecb keeping rates at current levels. also, announcing now rather than waiting. >> this is the latest in the line of central bankers trying to react to the slowdown in global growth. we have had a number of these over the economic cycle. he is trying to push the message the ecb is there to support, but the doubt in markets is will this get inflation towards target. is the ecb really credible here? >> a fourth day of declines for the s&p and dow, the seventh drop in eight days. >> we came into today with anxiety about global growth, weaker chinese and european data over the last few months. anxiety, thext of ecb came out, panic is too strong a word him up at the markets reading this as respiration. weak, and dollar strength is negative for u.s. corporate earnings. >> chinese trade slumped, exports and imports fal

not near the ecb's 2% target. basically, they are saying that the measures are not significant enough to ensure our confidence in future growth. look foroes suggest a more policy easing coming from the ecb. i think that is what the move is suggesting. think they were too optimistic about growth prospects? >> coming into the meeting, the market did expect them to downgrade forecasts. to an extent, there was a market to market to where expectations are. i agree with everything said. the timing of the announcement was a bit sooner than markets expected. when you look at the detail of what was announced, they extended foreign guidance by three months only. additionally, we don't know the details on the lending rates they will be using they are that itg the discussion will be higher than the previous . the margin more supportive for growth was not as markets would of liked. francine: will they have to downgraded in? -- again? were even these forecasts too optimistic? they might, even of a downgraded the policy stimulus

remember, ecb tomorrow in focus.st bring you to the pound, which is trading lower versus the dollar to the tune of 27 basis points currently around that 131 level let's get a look at u.s. futures as well. yesterday we saw markets there really swing between gains and losses, but ultimately ending lower, and judging by early indication, it's going to be a relatively sluggish start today. >>> well, former nissan chairman carlos ghosn has left a tokyo detention center after the embattled auto tycoon paid almost $9 million worth of bail. the tokyo district court had previously rejected an appeal on tuesday from prosecutors to keep ghosn in prison. he joins us from the nikkei with more details mikiko >> yes he was seen leaving the detention center about two hours ago wearing a blue cap, a dark-colored jumper, and a bright orange belt his face was covered with a mask, blending in with the guard surrounding him and left in a silver minivan with a ladder attached to a roof a rather unlikely choice of transportation the tokyo

it also shows the ecb is running out of options. investors should be asking themselves can the ecb do enough? nejra: meanwhile that 10 year bund yield stays below zero. we had germany selling notes at a negative yield. say to me, don't look at the bund yields. what is the bund yield telling you? wouter: yes, indeed, investors are worried about global growth. they are worried about trade, about brexit. all these geopolitical events are weighing on the german economy, the eurozone economy, and the global economy also. it is really a multifaceted weighing of the bund yield. looking at eurozone growth under the expectation trade talks one and badly -- will not and badly, we should see a bounceback. we should see recovery in eurozone growth. we should also be a driving force for the bund yield to go back into positive territory. commentse of the other that came out, he said if there was a slow down it would manifest itself in the widening of credit spreads. you were talking about the fact you are positive on u.s. high-yield. u.s. and eur

david: the ecb -- there was a point last year where the ecb expected they would be tightening by sometimen 2019. they have come full circle to where we had got a type of stimulus with probably stimulus measures coming in this year that will be needed. the biggest problem in europe and the reason we are avoiding the eurozone equities is brexit. when we talk about the troubles in europe, we had poor earnings growth. that is where we are concerned about earnings growth, economic growth. we are seeing the worst in years. look at all of the time and energy being consumed by brexit, not only the u.k., but in brussels and other matters they need to get to both politically and businesses that are picking and businesses trying to make decisions with the uncertainty weighing on them. --t is what we refer to as including italy arguing with the eu, the yellow vests in france, brexit being a case of major turmoil right now. there is so much political turmoil on top of a weeks earnings growth in europe. -- weak earnings growth in europe.we think we need to avoid eurozone equities at this time. haidi: a

the fed has woken up to the problem and the ecb still seems asleep.say that clearly this is something europe has taken into proper context. is a hard brexit something they should be worried about? and we should see in the next few days whether or not that weeks of people -- that wakes up the people in brussels. we hear that angela merkel is applying pressure. macron hasn't. maybe they are playing good cop, bad cop. weather mays deal goes through, it will give us a big list. likewise, the u.s.-china trade stuff. the point here is that the fed is a way to the problem and have decided to roll out rate hikes this year and on the one possibly next year. and then they will also stop tightening. why isn't europe during the fiscal response? that is exactly what is needed here. the ecb has stopped qe and the have left themselves on a cul-de-sac. guy: what would be the catalyst for that? we have seen week data today. i am curious what would get berlin moving in terms of ending money with. let be the elections coming up? maybe they would need some medical firepo

federal reserve follow in the ecb's footsteps?anet yellen appeared on cnbc last month saying the likely to cut rates isn't so farfetched. listen >> would you say that it's possible the next move is a cut? by the fed. >> of course it's possible if global growth really weakens and spills over to the united states or financial conditions tighten more and we see a weakening in the u.s. economy, it's certainly possible that the next move is a cut but both outcomes are possible >> joining us now is someone who knows her very well, former federal reserve governor great to see you here at post nine welcome. >> happy to be here. >> people are wondering after the ecb move to ease further whether it's a preview for the fed. >> well, sara, it is a significant move and i think it took markets a little bit by surprise because historically the ecb actually has lagged other central bank moves and here you have mario draghi actually acting in a preem preemptry way and deciding to move ahead with a stimulative move so, yeah i think this is somethin

we just saw with the ecb did. thelso last night saw what oh ecb did.utting the outlook for almost every g20 member. >> interest rates are hazardous to predict but they will stay lower. because they will stay lower, that makes the attractiveness of stocks and emerging-market stocks more attractive to the low yield or lack of return you are going to get in so many parts of the market. that is still a catalyst to an upside in the stock market. >> we have seen some concerns over the past months about the help of eurozone banks. every now and then, we see those concerns raised again. >> good luck trying to predict the bottom trough for european banks. i will give you an example. i don't own it but if you see something like deutsche bank, what they have gone through in this painful decline and now you are starting to get activist investors participating in deutsche bank and no banking industry quite well. they believe that they are going to be shoring up their capital. they are well-positioned and they are at such a bottom level, it starts to make european s