you said we need to dare more europe and we need to give more powers to europe. what is your long-term vision of europe? are we going in the direction of the united states of america? how do you see the future of europe if a young man or a young woman were to ask you today what would you were look like in 20 years' time. what would be your answer? >> translator: i actually think that we are a model in and of itself. a very unique model. the united states of america so quickly will not be a sort of role model to follow. but i think what we really need is a very clear commitment among ourselves that we wish to coordinate our policies as closely as possible. as regards the relationship between the nation state and europe, we will have very difficult debates ahead of us, because particularly in germany, there are very strict rules that are laid down and also monitored. but the federal and constitutional court as to the very structure of a nation state. i would say to young people in a few year's time, you will be able to change residence as students do these days. qu

into -- a well working one into a functioning europe. which means we have to be ready to transfer more confidences to europe. we have a stability and growth pact. we've had this in place for many, many years. but this stability and growth pact was not -- was not capped. actually germany and france haven't even watered it down at the time when the lisbon treaty was drawn up, it was said the european court of justice will not be given the competence to pass a ruling on us if we infringe upon the rules. so in the end, they were saying and our publics were saying but they're promising things that they don't really keep. and that is the view all over the world. so the real message of the fiscal compact that we're trying to agree on right now is that each and every one is to introduce a cap on debts, so-called a debt break and do this, inscribe this and incorporate in the constitution and the european court of justice. we'll monitoret

what are the implications of that for gazprom and europe as. regulator e permission is not the issue which the e.u. germany and the rest of the nations need gas to sensibly reform their energy policy people russia on the other hand has to sell gas to keep its budget in order so there's a codependency which is a good thing now to be happy to see european companies invest into russia and european markets open up to russian companies it's a good free market economy that's easy and i think europeans need gas or gas has many uses here with the political uncertainty in north africa it's good to have a stable partner that you can rely on and russia is one of these you know better than anyone else for instance that written recently switched from export to imperial europe needs a gas supply to maintain a stable mix of energy sources but its climatic conditions require getting needs norway to get outside but also russia's gas and therefore i think opening the market up generation companies would be a wiser more of. the name to do some e.u. officials oppo

it doesn't help matters in europe.hat needs to happen, i think, within europe is the banks need to invest this money in businesses within europe and at the moment it's been part of the ecb. what i think he'll do is probably outline the course of the next rate cut. i think we could see that may be in the next couple of months. >> okay. michael houston there, markets analyst from cnc markets joining us. andrew? >>> nina, the imf chief christine lagarde is a long way from europe. she's on a trip to south africa. europe's troubles were never far from her mind even as she tried to put a positive spin on that. robin kerno sat down with the imf chief. >> reporter: we start off the year and it seems as if all those problems with the eurozone are back to bear. >> we need to be very taenttive to what is being done and effectively delivered in europe. if you look at what has taken place in the last 12 months, significant progress has been made in terms of bailout mechanism, in terms of acceleration of stability funds such as the

with this crisis mr sarkozy says no euro no europe surely europe will survive without the euro so that. i know for more this is a quote from a successor in office like of course europe is going to have problems if the euro has problems but there's one thing you can be sure of the euro is going to survive as a common currency there even it theoretically things turn. differently which i find very improbable you think we will still have a united europe it is vital in or you would chancellor when greece cooked its books to join the euro should you have stopped athens from joining the single currency. on those it towards your own via i do not think that was our situation of the european commission its employees that had to conduct inspections they had letters know that we could take the responsibility for greece's e.u. a session on ourselves and it was a purely preparatory mission conducted by the european commission and the national governments we had made the decision to take greece in we cannot claim without having firm proof that the information we got then was on diplomatically speakin

more optimistic on europe than most people are and beyond it is than the. number of countries emerging economies or approaching the middle income. trap as it's called and if we discuss russia concretely russia has had wonderful growth for seven percent a year. for ten years until two thousand and eight and then a much lower growth rates an r.v. expect asians are three to four percent that's a grove instead and the question is if russia and other countries that are reaching with need the income level if they manage to do. reform further and reach a growth rate of five to six percent that should be possible here or if they will stay at a three to four percent growth rate you know i've talked to my priest in the bank to couple weeks ago before the new year and she said that you'd rather. keep your money in euros rather than in the u.s. dollars that's why she said so look at all those troubles she said it's a good sign when europe was saying we're winning we're all together i knew you knew we were really to be the united states well it was so so but now when eu

i'm more worried about europe. europe has to make decisions about what it's going to be in the future. so it is absolutely crucial, i do worry about europe for the reasons you have cited. but also because we now have a situation with russia, which is an opportunity, what is shift wkyc putin at the moment. we have an opportunity also with turkey. turkey has become hugely more influential in its region in the world. >> right. >> but we need europe reaching out, being more self confident not so internally focused but externally focused with us. >> let me turn to your book. i want to talk about that. it is a fantastic book on the economist list of top books to read so congratulations on that. >> thank you. >> what you did extensive research on, for the book. what did president kennedy do right? what did he do wrong. >>> and how did 1961 change it? >> the most controversial point in the book and the book that i think has caused the most debate was i say 1961, was one of the worst inaugural year foreign policy performanc

that while russia has the alternative of shipping to asia europe has no such alternative and europe's geopolitical position will only improve if it manages to enter a tiny heartless ship with russia on and at the same time grant all u.s. session to turkey that would be a sound strategy aimed into the future the rest is yesterday's debate unless and is guess that if russia does decide to go east could that mean the gas shortfall for europe now does vitter sneak know that low not happen russia was an exceptionally reliable supplier during soviet times so no one has to worry about that junction i will say again that europe kamarck it is incredibly important for russia to keep it a budget balance among other things therefore we're not talking about dependency here but a codependency to get progress in shipping liquefied natural gas. makes europe less dependent on pipelines can that affect this project and. i don't think it would have a negative effect on the project as europe's liquefied gas market is quite limited to move there's nowhere to sell it in germany or poland has a developing m

not going to bail out southern europe any more or does germany have a historic bit to europe has from putting its been there gave i'm not against discussing a red line the problem is that if you start to talk about a red line then you'd eventually have to correct it in germany is interested both politically and economically in a functioning europe that the economic interest is easily explained would forty percent of our export goes to the european union and beyond if those countries are hit by a crisis then so is germany secondly or both the lesson we learned in the past and our prospects for the future dictate that germany is not strong enough geo politically to play a significant role in a game where the us is one superpower and an asian leader in this case china is the other new european state is only a united europe can take on a role like that if that's why germany is interested in a united europe it is not just because of the past but for the sake of our citizens future that will come from the lord of being gerhard schroder chairman of the board for the north stream gas pipeline

the world economy and the neoprene maybe the forum in davos will be helpful so we're asking one of europe's most prominent economists former advisor to the russian government founders. on january thirteenth standard and poor's downgraded nine european countries including the stronger ones like france and austria both received a negative outlook considering the european leaders inability to cope with the debt crisis the weaker spain and italy were downgraded to an economist say they are one step closer to the greeks and now rio being part of europe russia has to come up against the global challenges but as for now it's managed to cope and economy is still growing. oh mr alston to walk into the show thank you very much for coming my pleasure well on the eve of this year's davus i want to comment form the organizers warned that i quote the world is facing significant and urgent challenges that we have. of only on prospects for future growth and the cohesion of societies and quit while it's struck me that exactly the same words we used last year during the forum well it is just a repetition of

some questions about its exposure in europe. the focus on europe intensified today with the action by standard & poor's to cut the debt ratings of several governments. one beneficiary is the u.s. dollar. the euro currency fell in anticipation of the ratings cuts, dropping to $1.26 per euro. that's the lowest price against the dollar since august 2010. also benefiting from the european worries? bond investors. bond prices rallied, pushing down yield. the benchmark 10-year government note saw its yield fall to 1.87%. that puts it close to its mid- december low. still below 2%. but again, we did not see a corresponding rally in gold. gold can be a traditional safe haven for investors in times of distress, but not today. gold fell by almost $17 an ounce. since september, gold has seen a series of lower highs. weakness in the international market for a different kind of metal has hit coal mining stocks. after increasing production of coal used for making steel last year, patriot coal will idle some mines to cut production. patriot sh

exceeds in europe mr further why should the e.u. increase its dependence on gazprom is get me or my. opinion guide or stance on we're not talking about russia's dependence we're talking about cooperation between russia on the one side and the european union on the other in the energy sector you know stream is viewed as a priority project both by russia and the e.u. because it's been part of europe's energy networks since two thousand and six recognized by the european parliament and the e.u. council of energy ministers brussels wants all russian energy companies not just gazprom to be allowed to export gas to europe what are the implications of that for gazprom and europe. regulator e permission is not the issue but the e.u. germany and the rest of the e.u. nations need gas to sensibly reform their energy policy to keep russia on the other hand has to sell gas to keep its budget in order so there's a codependency which is a good thing i would be happy to see european companies invest into russia and european markets open up to russi

the big story out of europe here.continue talks with the graek government today on a bond swap plan. the institute of international finance, the banking group that's leading the negotiations, said last night in a statement that some progress had been made and the talks focused on the legal and technical issues of a voluntary haircut. ross? >>> the world's biggest aluminum producer, joining us first is oleg deripaska, the ceo. you were discussing more bank ing covenance. are you feeling slightly better about that? is. >> we are all concerned, there's no doubt, but the situation is to live with the circumstances. that's why we just look at numbers which produce our main consumer, the transportation sector, construction sector, and the electronics, kitchen appliance and so on. and what we've seen in those areas, of course a certain area where we can feel and actually see some downturn like in europe. but there is an area where going forward to asia. also reports of signals for the last quarter. that's why, let's say, we'

troops in europe. what will the impact of that change be and what do both sides have to do to adapt to this new reality? >> i think it's changing. we have to adapt. we have the iranian crisis which we all have to deal. we have a change in the strategic environment across the world. and we have the new -- did not come as a surprise out two of reasons. first, we may have had the during the libya campaign. and second all european allies have been in contact with the u.s. administration to develople strategy. it's not a surprise to anybody. >> one of the -- there are several subordinate issues. one is obviously european governments are not in a position to increase investment. secretary gates last year went to brussels in his speech criticizing europe for not doing more for its own defense raised eyebrows but was no different than any speech in american defense secretary has given to europe to increase its investment. how will europe be able to step up its own investment in such tough economic times when c

, not less europe. germany is and remains deeply and firmly committed to a united europe. the integrated european market is the basis of our wealth and economic prosperity. the integrated decision making in brussels, while often tedious and full of compromises, has been the basis of more than six decades of peace among the european union member states. the integrated trade of foreign policies are our best chance to preserve our european way of life and assert our values and interests in a globalized world with a new sense of power. going it alone is not an option for germany. however strong our economy may be. history has taught us with chapters too dark to forget, european integration was and remains the only convincing answer to the german question. this fundamental continues to guide our policy. i am deeply committed to the idea of a european germany. allow me beside this text and by a prepared speech to make a personal remark to you here in washington. i was born in 1961. i am the first generation w

we saw some data indicating europe's economy has slowed, and banks in europe continue to keep a record amount of money on the sidelines, not loaning it out. you may see these european worries hit the bottom lines of american companies. while earning season has just begun, there are signs already that europe has become a serious drag. erica miller reports. >> reporter: we all have to eat and drink, so you would think demand for beverages like coca- cola would be strong in good times and bad. but wall street analysts are worried that weak demand in some european countries is taking a toll on the company's bottom line. another big headwind is the dollar's rise against the euro. >> the big impact that it has, i think, for coke, is when currency works in their favor like it did in 2011, they reinvest some of that money back behind volume growth or long term revenue growth. when it works out of their favor, they don't have that same flexibility as they otherwise would. >> reporter: that's part of the reason u.b.s. downgraded coca- cola stock from "buy" to "neutral" today. the firm has an inv

what's happening in europe has a big impact on china.it's not an economic island. we talk about the ongoing growth of china and it's emergence as an economic superpower but it needs partners to keep growing. we touched on this in the past, andrew. it doesn't have the domestic con summing to be able to fuel its own growth within its own borders. where does it sell to? it sells to the united states and the eu. in fact, the eu is the biggest market for china. two-way trade between europe and china worth over $500 billion a year. so china needs to have a healthy year. at the same time, you know, this relationship has had its strains in the past. we've seen a lot of concern in europe as the reason the united states have got what they see as china officially keeping its currency low to get an export advantage. also concern that china is not opening up its markets enough to europe. talking to one analyst today, he was interested in saying he doesn't think europe is as hard line as the u.s. is. he said to me, he believes europe is more in awe of

>> susie: concern and hope about europe dominate u.s. trading again. european countries hold back on spending, but no agreement on greece. >> tom: from europe to a battle unfolding in stores across america-- beer versus liquor. we look at who's winning and how it could benefit your portfolio. it's "nightly business report" for monday, january 30. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by: captioning sponsored by wpbt >> susie: good evening everyone. progress in fits and starts at a european summit meeting in brussels today, and that led to losses and a late comeback on wall street. tom, european leaders met to work on three key items: an agreement not to overspend, a permanent bailout fund to deal with the spreading financial crisis. between with still don't have a deal between greece and its lenders. a more optimistic message that europe is get on top its did debt crisis that lead to the blue chips losing 6 and 3/4 points. on the bell after dropping in the first hour of trading, t

is dependent on europe when in reality the u.s. has some major problems of its own a major debt overhang both private and public the fed has been very active in trying to reflate the economy but unaffected unaffected does far and economists fund managers really trying to figure out whether the economy's going to. towards inflation or deflation in really dramatic scenarios that could be catastrophic high unemployment more than sixteen percent for people that either don't have work or want more work you know these are some real issues that the euro zone has nothing to do it and a congress that is bitterly divided in an election year is not likely to pass much so some real concerns that are being addressed here you know it sounds like it's a mess everywhere to be honest from what you're saying a lot of work to be done if they can come up with any concrete solutions there live in the swiss alps thanks for that. well five candidates are in the running for russia's top job in march the electorial commission's confirmed the applicants for

turn to europe.hat is your recommendation to fix the euro debt crisis and get this volatility out of the -- >> europe is kind of a unique thing. i'd like to see europe solve its problems. i think the european union and euro itself is a great accomplishment of mankind. any country that says we want to see all countries be responsible and accurate. to do that it is retirement, work hours, competitiveness, et cetera. i think it is fair for them to say it is a government issue. i think it is fair for the government to say the ecb needs to provide liquidity for italian sovereign debt. they have a lot of issues to work out and need to be done almost together and soon. i think the longer you wait the higher the risk if something goes wrong that you can't control. >> what is your view on what they have done so far in terms of the lending facility. >> the last thing they did three or four weeks ago, where they expanded the amount of clout to be used and if you have the clout you can borrow three years at low