step down today and protest a coalition government headed by the former vice president of the european central bank. the european central bank like our federal reserve kept benchmark interest rates. the dow up 126 points. s&p and nasdaq in the green as well. bloomberg silicon valley index trading higher. facebook facing more controversy about privacy. unveiling a new feature call timeline will show your past back to when you created the

france still wants germany to change its mind and allow the european central bank to guarantee the debts of any country which runs into trouble. the fundamentals are solid, the problem is cthfidence, said the french foreign minister. i think the ecb should play an essential role to restore confidence, and i think it will. but there is -- little sign of germany or the ecb itself changing position. the bank is not there to print money. but how much of a jolt did germany feel yesterday when its debt agency had to retain nearly 40% of an auction of german bonds because of lack of demand. some analysts believe pressure on berlin could be building. and another idea it has rejected so far -- eurobonds issued jointly by all eurozone countries will certainly be discussed by the three leaders in strasbourg. >> i think in today's meeting we move closer rather than distancing from the. we are hearing from both sides of the german government is not ruling out eurobonds and so we are getting closer. >> germany, of course, has its own ideas, including far reaching treaty changes to make the rules which

in the most negative role the europeans and especially the germans are furious at the bank lobbyist kim basinger's coming over and telling europe the european central bank you have to have a voluntary rate because if there is a default the u.s. banks have placed big gambles on the greek chorus reduce the gamble that greece is going to be forced to repay their debts and so they've written credit default swaps against that and if you europe don't make this big agreement voluntary then. we're going to loot so let's get it clear your job in europe is to do what the us calls you to the europeans told me. so then you have mr obama and obama said just exactly what you said. we want you to make sure that there is no referendum your job is not to promote democracy increase your job is to extract as much capital as you can from greece so that our banks who plays the bear can win at the expense of your banks and the european central bankers knuckle under so there is an absolute. garment and as one politician told me the one good thing of obama as president is he security europe any allusion that they can any longer rely upon any worst president to really take

become keener to put their money where it is supposedly completely safe -- on deposit with a european central bank, rather than lend to each other. bank deposits at the european central banks have risen by more than 100 billion euros over the past fortnight. that dead money at the ecb stands at just under 300 billion euros. banks have found up harder to borrow dollars, the world's most important currency. to stop the banks from collapsing, the fed has cut the cost of lending dollars to other central banks which have pledged to lead to a local commercial banks what ever dollars a need. the central banks have put in place contingency loans should the need arise. have the central bank's save the world? probably not. the underlying problem is the sovereign debt crisis cannot sublet the dollar funding crisis. this action today doesn't do anything to end the sovereign debt crisis. we will need more action from the europeans, especially the european central bank. >> the man who runs the biggest investor in government debt is taking it all quite personally. >> i feel more worried and scared, not just as a

the will do everything they can do to protect the independence of the european central bank however you're seeing that the european central bank functions on the great political pressure no one knows what's going on no one knows whether the solutions brought forward in the latest europe are will do their job there's a great deal of uncertainty and show it's very hard to tell how disk i use bankrupt credit will handle the situation. and maybe he will also do what three show do and take each what they call unusual steps to try to stem an almost inevitable crunch that we've had some analysts on the story suggesting that the handing of the baton is simply a rearranging of the same fun if not now greeks who have been having a terrible time in two thousand and eleven will get a referendum on the new european bailout that the other factor today's markets have already taken ahead following the news of the possible referendum violent protests suggest that many people just are not happy with what's going on it's a hard bargain agreement now and a real threat to think. you know it's hard to show you

the european central bank has been solid as a rock. the decisions on monetary policy taken here affect 320 million europeans, most of the 1500 staff are economists. their top priority -- to make sure the euro remains a stable currency. this conference room is where european central bankers hold their monthly meetings. the panel includes representatives from all the 17 eu countries that use the euro. they study how much money is in circulation. the economy -- in circulation, how the economy is fairing -- faring. there are signals of dangers for higher inflation. the ecb can raise interest rates to cancel that pressure -- counter that pressure. interest-rate increases make loans more expensive, but make saving money more attractive. people ultimately spend less, which helps to keep prices steady. that is a policy that germany's own bundesbank used for years. turbulence in the economies, financial markets, and the eurozone debt crisis h have altered the ecb's role. the babank h had to ride to the rescue in emergencies. outgoing ecb chief

the pressure on the european central bank will not necessarily produce an immediate reaction. >> i think we are unlikely to see what some have talked about which is the european central bank literally announcing one day we are going to be the lender of last resort and put unlimited amounts of money behind countries lake italy and spain it make sure their cost of borrowing doesn't go beyond a certain level. i don't think that will happen. what you may well see regardless of what happens with the politicians the next week or so is that the state of the eurozone economy, the fact many forecasters think it is in recession and could be the next six months or so, that will drive the european central bank to do more purchasing of government bonds and what we often would call quantitative easing. it is more likely to come from that direction, they will do more to support the economy for their own monetary policy reasons rather than wanting to play the more political role of lender of last resort. i think their point has been and one that i think the americans are sympathetic to is that this is r

but the european central bank is saying they're expect a mild recession in europe. what impact will that have on the u.s. economy? will europe drag us down? and can the u.s. economy grow even if there is a recession in europe? >> yeah, the u.s. can continue growing at a modest rate, even if europe has a slight turn-down. i would not expect a significant resession, and that's what mario drogi said today, a mild one. but it will be adverse on us. it will hurt our exports. it will hurt the earnings of our firms heavily invested in europe. it will a a tenth, .2 of a point. they have avoided the abyss once again. there will not be a big financial crise. there will not be a disorderly default by greece that will upset the banking system. that could spill over to our financial system but that to me looks like it's being avoided at this point. incidentally, i think the european central bank will do more cuts. >> i want to ask you about the euro. because of the wrangling going on during the debt crisis, a lot of people have been speculating will the euro survive as a currenc

and it's all change at the top of the european central bank. stepping down after eight years of the last recession. this halloween saw the f.b.i. tell its own story released surveillance footage of anna chapman and other alleged russian sleeper agents uncovered in two thousand and ten the agency says the videos show a spy ring at work. reports from sky. perhaps spookiest over all is that this would each doesn't contain any actual spooks there was no charges of espionage leveled against the ten people who were arrested in the united states in june of last year and said they plead guilty to conspiracy to act as a mule full agents of the foreign governments know this these videos are to be released cooking cool stories course released on halloween something which did raise a few eyebrows however the f.b.i. how they shoot. this is just purely coincidental now the footage shows members of this alleged spy ring. doing such things as shopping in macy's and using laptops in popular branches of bookstores the f.b.i. saying that operation ghost story sen

so germany is in the way the one of the solutions which is all the european central bank to create money and to save the private banks from losses from holding sovereign debt of greece italy spain and portugal so germany says no we didn't enter on what basis we. and on the basis that's now the treaty and we want to stay that way so being in the way your game central bank i think the united states was part of this is squarely european commission they and the private bankers of course they engineer to fail all is absolutely no reason for government option to fail but it's. it's the country that's expected to bail out also you know others so if it can sell as winds that could it be expected to bail out all the others because i didn't sound like you think this is an actual orchestrated the financial war fare yes it was it was orchestrated against germany to punish them integrating them around to the solution a third by the private banks and then we can sit and wait and have a very private how to thank you. so very profound that kind of thing dr roberts well how could you prove that unless yo

has passed the baton of the european central bank to italy's mario draghi shares eight years as e.c.b. head took in recession and europe's ongoing debt crisis and with that still rumbling on his successor is going to have to hit the ground running. a professor of economics at erasmus university in rotterdam thinks it will be immensely difficult for draggy to handle the crisis. i think that actually he'll be more principled even the preacher and the e.c.b. will try to follow our very strict chorus holding on to his. assignment to control inflation. being reluctant to step in to sell her governments were excessive in their debts however you have seen that the european central bank functions on the great political pressure no one knows what's going on no one knows whether the solutions brought forth in the latest euro top will do their job there's a great deal of uncertainty and so it's very hard to tell how this guy this craft will handle the situation and. it may be that he will also do what creature do and take each what they call unusual steps to try to stem an almost inevitable cris

of the european central bank only stepping aside for a former commissioner who better to deal with the euro crisis and any suggestions well i think the best suggestion was the one made and drew the former group proud of the now former greek prime minister he suggested that this monumental austerity package and the. associated. to a referendum that was a very intelligent thing it was perhaps the most intelligent thing you've done in his premiership cotterell if you're asking a country to make major sacrifices that is to say sack sacking large numbers of civil servants people taking pay cuts engines becoming poorer and surely you need to legitimate it through a public debate and winning of her referendum up and drop asleep thought he would win the referent but when you when you say when you say give it a public debate i mean why should the greeks and italians actually be given a choice here i mean are the ones who who are elected their governments in the first place ultimately responsible for the crisis. they are of course the governments are responsible for the crisis but there is a co

of the european central bank rejected the idea of the central bank becoming the lender of last resort for financially stressed the government's. the german government has blocked the central bank making an emergency loans. countries are obliged to help each other. >> our responsibility does not and the borders of our country. it goes far beyond. >> italy could renege on what it owes a and a massive losses for banks, a break out in the banking system. he could in fact the u.k. and a possible collapse of the eurozone. the french boss of the imf -- >> we run the risk of what commentators are already calling the lost decade. >> they even said european leaders will find a way. but tonight, their plan is hard to spot. >> they are continuing to inflict damage on the asian stock market. the losses are getting deeper. the hong kong index plunging more than 4%. australia lower by more than 3%, japan down by 2%. wall street shares dropping with fears that the international lenders will be unable to assemble a bailout big enough for italy. it is continuing to weaken in asian trade. investors hide

that is the european central bank is basically propping up italian debt. the european central bank is essentially by in the amount of italian debt that is -- buying the amount of the italian debt that is needed. the european central bank is kind of on a limited ability to print money, just like the federal reserve bank does in the united states if it wanted to, and to buy government bonds. but, everyone understands that this is not a sustainable, long- term solution. at least most people understand. the german taxpayer and the german representatives at the european central bank are especially opposed because they see it as a d-day scene of the currency -- a debasing of the currency, which supports what they believe to be a profligate government in the periphery of europe. in fact, two board members have resigned from the european central bank in protest against these bond purchases. if this goes on much longer and the european central bank keeps accumulating these italian bonds, it is inflationary, and people are correct in saying that if the european centr

that probably means that the european central bank will be center stage in any such solution. >> but night, the departing chief economist of the european central bank rejected the idea of the deep-pocketed central bank to becoming a lender of last resort. and the german government has to date blocked the central bank making emergency loans as such. >> our responsibility does not end at the borders of our countries. it goes far beyond . >> but without a bailout, there could be massive losses for banks, a breakdown in the banking system, europe-wide recession, which could affect the u.k., and a collapse of the eurozone. a broad solution is necessary or else -- >> we could have what some commentators are already calling a "lost a decade." >> tonight, their cunning plan is hard to spot. >> the debt fears continue to inflict damage on the markets. asia's losses continue to deepen in the third hour of trade with hong kong plunging more than 908 points. that is more than 4%. austria and is giving back a hefty 180 points this morning, 3.5%. and japan is falling by two hundred 40 points. share

bond yields declined later as the european central bank bought the government bonds of spain and italy in the afternoon. however, the central bank was the only active buyer in the european bond markets. pam of the royal institute of international affairs, a london-based independent research institute, said political instability in countries struggling with debt is feeding concerns. >> one of the reasons is definitely the fact that there is political uncertainty in the countries which are more at risk, and so in particularly italy and spain. panic generates more panic. the question now is how to stop this panic. probably the most plausible option is that -- an intervention of the european central bank. >> meanwhile, greece has seen mass demonstrations for the first time since the inauguration of the new coalition government under prime minister lucas papademos. over 30,000 people, including labor union members, held massive rallies in athens on thursday. the demonstrators voiced opposition to belt-tightening measures imposed under the previous government. this include tax hikes and cuts

. >> and to the receipt -- european central banks the taps the interest rates, sending stocks higher. >> it has been a fast-moving story this thursday, the future of the greek government, its place in the eurozone, and the stability of the euro are all up into the air. george papandreou spoke to his government thursday, vowing not to step down. he said he will allow a vote of confidence to go forward tomorrow. but he has not answer the other burning question, will the greek people decide on the eurozone bailout? the finance minister has said there will not be a referendum. if you are confused, you are not alone. our coverage begins with papandreou's speech. >> a defiant papandreou spoke before his own specialist -- socialist party. he said he would not resign and rejected any idea on the country according deerow. -- quiting the euro. >> this debt that we have achieved is a lot bigger than the sacrifices we have had to make. it is a clear indication of the greek people and all of you in parliament and of us, in government, for all of the difficulties that we had, our stamina in the thr

entire careers through garnering appointments in cases like the european commission or the european central bank and they have no democratic mandate at all and precisely what is so frightening about what is happening as the european union and the euro enter its death agonies because that's what i think it is is the way in which the european union really is showing and i say this without any eight hundred it's true nature as a dictatorship after all it is europe which has effectively commanded these two prime ministers to leave office and really had to leave office that moment he suggested a referendum on the debt package and berlusconi had to leave office the moment he said that italians had become poor under the euro so we're seeing really a very ugly development in europe where people are being put in power because they serve the interests of the demands of the european union not because they have gone at any and electoral support in their own countries or indeed you're playing on the issues of democracy in the principles of democracy but with the greek prime minister passenger oh giving up hi

lucas papademos is formally of the european central bank. -- formerly of the european central bank. >> allen joins us in rome. let's get this clear, the senate is going to approve measures, is it not? it is going to pass? >> there is no real doubt about that. everybody does it feel it is pretty formulaic stuff, that in the next couple of hours, that said it should run through these austerity measures -- the senate should run through these austerity measures. once these measures have been adopted, prime minister berlusconi says he will then resigned and we can expect that to open the way to president nepolitano, we expect much to ask mario monte, the former european commissioner to have the administration. >> you had mentioned he is the favored leader. do we know what he will do want to get into the premiere's office? >> -- once he gets into the premier's office? >> we do not have any detail on what montiel plans to do, but he does have that reputation as the tough negotiator, the man who tangled with microsoft successfully when he was the eu commissioner for more than 10 years. and ce

it is unwilling to allow the european central bank to become a lender of last resort. this is why. the memory of inflation in the '20s. truckloads of money were needed to pay basic wages on a daily basis. germany will not agree to the ecb printing money. it is the weight of history that makes germans hypersensitive to the idea that the european central bank could be used to help countries in difficulty. when it comes to big economies like italy, at the german government is still hoping that tough economic reforms may be enough to help italy set itself. >> the most important step is to be done by italy itself. indeed they stable, reliable government. -- it needs a stable, reliable government. >> some mps are prepared to see countries in trouble leave the euro zone. >> member states of the euro zone which cannot reach sufficient competitiveness will reach a point in which they might be no alternative than to leave. >> one of chancellor murkowski advisers says more funds may be needed -- one of chancellor merkel's advisers says more funds may be needed to shore up the euro zone. >> we

they're mostly young people in financial centers outside of the european central bank in frankfurt or on the edges of the e.u. summit in brussels. it is basically a leaderless movement, but the people know what they want, fair distribution of wealth and an end of what they see as the greed of the big banks. >> an entry demonstrator chance the words to vote in all chilean song about liberty. they have traveled to brussels from the south of france along with other protesters. a found a place to set up camp on the outskirts of the city. >> we walked between the 30-35 kilometers every day, through every village to meet as many people as possible. we have practically crossed france and three groups. >> he is one of many well- educated young people who have not managed to secure themselves a steady place on the career ladder. >> it is important to have a right to an apartment and to work, to have enough to eat and be able to live, not always just survive. b>> here in the camp, they live from donations from sympathizers who like them have had enough of financial market capitalism and the spe

they disagreed on the role of the european central bank in helping to stabilize the eurozone. >> on the franco-german border in a city synonymous with the idea of european unity, italy's prime minister joined the big two in the eurozone. they want to send a message to the markets that italy is in safe hands and has the full support of his allies. what is this new triumvirate going to do to stop the eurozone from spinning out of control? >> faced with a gravity of the situation, we have told prime minister monti that france and germany will propose changes to the treaty to improve eurozone confidence. we hope that italy will join us. >> the idea of a treaty change will not be welcomed by everyone. many are trying to persuade germany to ease their opposition to allowing the european central bank to use its unlimited firepower to protect countries which are struggling. no sign yet that mrs. merkel is budging. >> when modifying the treaty, we're talking about fiscal union, a deep political operation. this is a different story. we have proposals on that which have nothing to do with the ecb.

what's going on here is that in the sumpter european banks decided they didn't trust each other and the inner bank market froze so the european central bank says we well into the interbank market and so everything worked fine until just the last week or so when suddenly the european bank said "we don't trust the european central bank. we're not sure it's going to be around." >> brown: they don't trust each other because they don't know how much of their own problems... >> part of it is, too, there's so much... there's a web of interconnectivity but they don't... but what's interesting now that the global central banks led by the fed said "do you trust us?" and if they don't trust the world central banks collectively we have a problem. but i think it was successful in that what you have right now massive amount of liquidity around the world sitting on the sidelines with very cheap equity markets. so any time there's a little bit of positive news you see this explosion in stock markets because it's so cheap and there's so much money just sitting there ready to move. >> brown: catherine mann, what would you add to about why the markets

looks like the eurozone crisis is scared of central banks around the world enough to take action today the federal reserve the european central bank the bank of japan the bank of canada and the swish swiss national bank announced a quarter made an effort to ensure liquidity for the global banking system now this essentially means that that is going to make it much cheaper for european banks to borrow dollars as at the moment now they're kind of short on cash and markets were loving this news today and saw a major surge but most analysts would agree that increasing liquidity is only a short term fix for a much larger institutional problem within the euro zone so how do you look at it is a quick fix going to give europe the time that it needs to restructure to stop its crisis were growing the global economy down or is out just more wishful thinking more band-aids that lead to more about habits for which lessons are never learned to any more study in los angeles to discuss his day to day and blogger firedoglake dot com david thanks so much for joining us tonight and for starters what do you think about this move coming f

the chancellor is system allowing european central bank to print money is not a solution. >> david cameron's motorcade swept into berlin at a moment of tension. the german comments have been critical of the u.k. he and the german chancellor have very different visions of the future of the opinion. after lunch, they emerged with smiles. >> thank you for the warm welcome. >> on the issue, solving the eurozone crisis, there was a gulf between them with david cameron urging that every institution be deployed to fight the debt crisis. >> all of the institutions have to stand behind and in fact the currency and do what is necessary to defend it. >> this was clearly a push to use the european central bank as a lender of last resort but the german leader essentially said no. >> the british demand that we use firepower to win back credibility. we have to take care that we don't pretend to have powers that we don't have because the markets will figure out that this won't work. >> david cameron did try to reinforce his point that europe needed to bring out its big bazooka to deal with this crisis. >> m

while i think of this point if the european central bank does anything short of this sort of a massive intervention buying of tons of italian dead greek that spanish is going to be big trouble fact of the matter is what you see is being asked to do is what central banks all around the world already do which is backstop governments and basically basically the fed funds the u.s. government which is why despite our high debt to g.d.p. we don't have these problems the euro european countries don't have that backstop and if they don't get it soon that is going to be a big problem because they're realizing that more and more every day right i want to go back to black friday occupy wall street for one quick second today they are planning something basically to boycott our occupy black friday i think we have a news clip to take a look at. protesters here are planning boycotts they want people to skip the sales of major retailers if you need to. as part of what's being called occupy black friday harvest alterman says we could see protesters picketing big chain stores or even occupying them. all

letting the central banks stepped in and rescued the entire currency bloc but they have to make some decisions whether to come up with more cash from its taxpayers or take the risk with the european central bank. >> what do europe's problems mean for us in the u.s. when finally the economy has started to grow the? >> this is the biggest near-term problem. there are all sorts of underlying issues whether it is structural problems, you can call it regulation or lack of demand. when you add a layer of uncertainty, there is no chance that you will have businesses pick up their hiring. there is no chance that you will have consumers go out when you see these enormous fluctuations in the stock market. that is a new drag. we are at the point where it is just a drag. given the links between the u.s. and europe, they are so close. the banking system in europe could spill over to the u.s. >> thank you very much for that analysis. now to the debate which has the republican presidential candidate rick perry admitting he stepped in it. this came after he declared that he would close three departments if he became president. the only problem was that he could not remember which ones. this is t

european banks have had difficulty in getting enough dollars. so, last month this problem had been getting more and more acute. the european central bank had had to give as much as $255 million from the federal reserve to try to settle that demand. they are making more dollars available to the banks so they can meet their obligations and avoid the credit crisis that we saw a few years ago. >> we are dealing with two separate problems. we are dealing with the short- term problem of not enough credit being available the longer term problem of too much credit available in the past. >> that is going to be the challenge lies ahead. what we see today is that the central banks have bought time, the question now is what is done with that time? all eyes are turning to a meeting between european leaders. there is pressure on them to try to come up with a plan. obviously, that is the big concern now -- what can be done? certainly talking to investors, they would like to see the european central bank play a greater role in this crisis. possibly buying up the bonds of troubled countries like italy and spain, something that they have been reluc

i am optimistic. >> the focus in athens has now shifted to former european central bank vice-president lucas papademos. he has been tipped as the most likely candidate to take over as prime minister. but rumors are just that. greek leaders have yet to confirm any appointment publicly. antonis samaras helped hammer out a deal that will last until february, when voters will elect a new parliament. >> silvio berlusconi was forced to deny rumors on monday that he is bound to resign. he faces a growing rebellion within his own coalition that italy will go the way of greece. it all adds up to a major headache for european finance ministers meeting in brussels. >> regardless of who heads the new greek government, it seems clear that the finance minister will keep his post. he was in brussels looking for support. >> we have a new government of natural unity and natural irresponsibility. -- of national unity and national responsibility. >> crease urgently needs financial aid to keep the country -- greece urgently needs financial aid to keep the country running. athens will run out of money befo

david cameron added his voice to a chorus of others urging the european central bank to throw its weight behind efforts to solve europe's deepening crisis. >> let me be clear, it is for the euro zone and the ecb, the european central bank to support the euro and global action cannot be a substitute for concrete action by the euro zone. the g-20 withheld certain commitments at this stage precisely because we wanted to see more concrete action to make it more credible and stand behind their currency. had short, the world sent a clear message to the euro zone, sort yourselves out and then we will help. not the other way around. >> david cameron there, the uk prime minister. while germany is fiercely opposed to a bigger role for the european central bank, many economists appear to think the measures taken so far are not strong enough. the bailout fund, had a hard time raising money from investors to ten-year bond sale on monday. it was forced to offer a yield 177 basis points over the yield on german government debt. that was more than three times the yield on its ten-year bond sale in june

former european central bank vice president lucas panda to be named the new prime minister of greece. the country's presidential office announced on thursday that the ruling and opposition parties have agreed to name papandous to the post. he told reporters that he's honored. he said he's confident that the financial crisis can be solved. the ruling and opposition parties is been negotiating to form a coalition government since the presidential office announced the incumbent prime minister, george papandreau's intention to resign on monday. the new prime minister and the ministers of the coalition government will be sworn in on friday. >>> the tokyo stock exchange has put olympus on a supervisory watch list. that is what it costs investors about trading company's shares. it is reaction to an announcement by the spokes the object equipment maker embroiled in a scandal involving corporate buy-out concealing massive losses. and the company was placed on the watch list after announcing it will miss the legal deadline next monday to release the latest earnings report. olympus employees hav