that was the message from the european central bank chief. he even refused to rule out further cuts in the benchmark rate if needed. >> the governing council confirms that it expects the key ecb interest rates to remain at present or lower levels for an extended period of time. >> the cheap money policy is intended to stimulate the economies of the 17 euro zone states. awash in liquidity, banks would pass the money onto the private sector at favorable rates -- at least in theory. >> the ecb is doing what the u.s. federal reserve has long done. namely, support the economy. draghi even says it openly. >> in the u.s., the benchmark rate is even lower at just .25%. some insiders expect the ecb will cut its rating and in october after german elections. >> interest-rate decisions are always carefully observed by the markets. our frankfurt stock exchange correspondent has this reaction from the trading floor. >> mario draghi sounds very different from the u.s. central bank, and that is intentional. the fed wants to gradually withdraw from crisis mod

jobs a large share of the installment four billion euros is funded by the euro zone and the european central bank the international monetary fund is contributing one point eight billion in return athens has to fire four thousand civil servants by the end of the year while twenty five thousand more must be redeployed the impact of a worsening unemployment is felt everywhere in greece not least in its drug clinics are going off take a look at the unorthodox way athens is dealing with the social fall out from the crisis. used to be out of work now he's still unemployed but also on heroin is homeless and has aids he's already tiny chances of getting a job have vanished completely. alone that some start using because they are angry at life no work no money for the same reasons many decide to start selling drugs but end up using the needle themselves. every day drugs rock the lives of new people with just one many thought they'd hit rock bottom it's very to hear gunfire there. and as far as i'm concerned is the worst thing of than. the latest hit on the greek drug market is making even the most experie

jobs a large share of the installment four billion euros is funded by the eurozone and the european central bank the international monetary fund is contributing one point eight billion in return athens has to far four thousand civil servants by the end of the year while twenty five thousand more must be redeployed far from bringing medicine the bailout funds are actually running greece according to expert patrick young into the ground. greece was never going to survive as long as it was in bailout mode because the difficulty is that you know throwing vodka at alcoholics just tends to make them more alcoholic and it doesn't affect them and improve their overall condition really what greece has always needed to do was to leave the euro and declare bankruptcy it's the only way that it can feasibly restructure what's going on instead what we have is this absolutely mainly arkell situation where in order to manage to stay in the euro we have a series of political forces in western europe who are desperate not to see their law you see political experiment fail and therefore greece has been left just l

the the european central bank and more later on. toyota's earnings will be a big focus here and we will get domestic sales figures from a fast retailing to operate also later today after the markets close. a lot of focus there. both on domestics in the retail sector and the auto sector there. we get the market reaction from all of that when we come back on monday. back to you. >> thanks a lot for that update. from the tokyo stock exchange and as he mentioned, central bank policy makers decided to keep their benchmark interest rate unchanged at a record low level. ecb policy makers met on thursday and agreed to hold the kai rate at 0.5%. afthcy board meeting, ecb president told reporters he expects the key interest rate to stay at the current low level. he said it will be for an extended period of time and maybe cut further. >> monetary policy stands and continues to be geared towards maintaining the degree of monetary accommodation and warranted by the outlook for price stability. and promoting stable money market conditions. it the

the european central bank, international monetary fund and european commission will review greece's progress this fall. amazon is reportedly on a warehouses building spree. bloomberg news says amazon is spending nearly $14 billion dollars on 50 new warehouse fulfillment centers for its products. earlier the tech giant said it has plans to add 5 thousand new workers.. in our cover story, many parts of finding where to live are going up.for one, homes sales spiked in july from a year ago.for another, rents are going up.and there now appears to be consensus among policymakers at the federal reserve to begin tapering the bond-buying program that's held interest rates in check. the national association of realtors says home sales since july of last year are up more than 17%.and according to online residential real estate site, trulia, home prices in that time have gone up an average of 7%.---partly because developers have not been able to match the spike in demand. "new construction is a long lead-time thing. you can't have instant demand met by instant housing. you have to get lending, then land

. >> the european central bank is introducing a gender quota with the aim of more than doubling female representation by 2019. currently, only about 15% of senior management positions are filled by women. the quota will not apply to the ecb executive order -- board. for an update on how today's news has been affecting the markets, we go to the frankfurt stock exchange. market, but traders remain relieved that there is obviously no immediate military strike plan. also, the euro price retreated. traders also welcomed positive u.s. economic data between april and june. growth was much stronger than expected. gdp rose at a 2.5% annualized rate. germany and the eurozone are far away from these figures. shares of companies which are very dependent on economic cycles have been on top of the list at this data. >> the dax in frankfurt was up by nearly .5%. euro stoxx 50 told a similar story. their finish is 2758. over in the united states, the dow jones industrial average trading just over .25% up. right now, it is that 14863. the euro very slightly down against the dollar -- $one .4263. the ch

from the eurozone and that's after the bundes bank said in its monthly report monday that the european central bank wasn't unconditionally committed to keeping key rates at record lows. so some direction from eurozone economies as well. ai? >> ramin, the euro rallied against the yeb and the dollar. where do we stand on currency this is morning? >> exactly. some volatility there, let's kick off with the euro/yen, 130.20-4, in new york, trading hours the euro jumped to a two-week high-rising to the 131 level after the bundes bank remines, 97.62-64, trading in a narrow range until we get the fomc minutes on wednesday. very little data until that point. the finance ministers in japan will be auctions 40-year government bonds and with the interest in japanese government bond yields, there may be a little bit more interest in that as we're not getting too many incentives so far for stock placed today but a negative start so far today. back to you, ai. >> ramin, thanks for that update, ramin mellegard from the tokyo stock exchange. >>> nowly have more business headlines for you next hour. i'll leave with

the european central bank we have to buy chip lead projects they don't live with this and if we're discussing from u.b.s. i totally i know they're about to head i said. our leaders are being exposed to the force of flying f. fourteen point lead. over the last twenty years bangladesh has become a global center for lesser production. this industry generates over three hundred fifty million euros per year for the country. and has a very bad suburb of the capital dhaka around three hundred tonne there is a field of twenty five acres producing the clothes and leather goods that flood the international market. more than fourteen million skins are treated every year in the slum warehouses and turner is sit side by side. a nightmare situation. for which we westerners are also responsible i serve god. all skins are wired like this every day and each one of the factories we're in one of the has very bad tenor is an average sized factory employing around thirty workers it's here that the cycle of leather tending begins. every day around one thousand tonnes of skins arrive directly from albatross all ove

a member of the european central bank notes athens is on track for more aid if it keeps with current measures to cut down on its debt. walmart is suffering a set back. the world's largest retailer has been intent on expanding into india. however, the financial times says the plan is on hold for now. the indian goverment reportedly is investigating whether walmart violated rules including bribing indian officials to get permits to open stores. boeing unveils its latest dreamliner model. the 787-9-- is 20 feet longer than the original dreamliner and will be able to carry 40 more passengers.the 787-9 is the second version of the newly- designed and lighter aircraft. boeing expects to make its first delivery to air new zealand in mid-2014. general motors is changing its superbowl game plan. the automaker says --- this year-- it will advertise during the big game. the company wants to build buzz for several new models. gm made the call last year to opt out of advertising during the super bowl claiming the rate of $3.8 million dollars per 30 seconds wasn't worth the money. mcdonalds has a

the omt never actually utilized but you have seen a more aggressive response out of the european central bank than you saw out of the boj back in the '90s. second of all, european demo graph innings are not great, japan is a special case. japan has a very big demo graph inc. headwind worse than anywhere else in the world. and finally i would point out that while i've had low inflation in europe you've never had the type of entrenched deflation that has been evidence in japan now for the most part of two decades. the good news is that japan will hopefully finally be climbing out of that hole but i think it's fair to say europe even with all its issues is not yet japan. >> russ, a good question about europe. to me, you look at this euro box -- euro bank stock index, up 25% the last five six weeks. to me seems like a real chase here. what percentage of those gains are you know, is really affecting the european trade right here 'cause to me, a really weird timing on the straight. companies are still in the middle of a deleveraging process that started with deutsche bank a few months ago barclays

by opec and speculators, it's by either the federal reserve or the bank of england or the european central bank. > >but phil, those are traders. i smell speculation here. > >well, there's always a speculator, but for every speculator, for every buyer there is a seller on the other side. so that kind of evens it off when it comes to speculators. when you look at what really drives the market, does anybody think that oil would be above $100 a barrel without the federal reserve, and qe, and negative interest rates? i couldn't find one person that would think that. > >what's going on with demand? > >i think demand in the u.s. is falling over the big picture but in the emerging markets, like china, it's starting to go up but not at a big pace. the big picture of the united states has hit peak demand. our demand is gonna start going down year after year. and our production is gonna go up year after year. i think we're gonna be a major oil exporter to the emerging markets and here in the u.s. we're gonna become a lot more efficient. we're going to drive a lot more natural gas vehicles and electric veh

i am my own business the european because he missed the european central bank be happy to buy cheap led to projects that don't include i mean this is different i discount.

thousands of public sector jobs a large share of the installment is funded by the eurozone and the european central bank the international monetary fund is contributing one point eight billion in return athens has to fire four thousand civil servants by the end of the year while twenty five thousand more must be redeployed and far from being a medicine the bailout funds are actually ruining greece according to expert. greece was never going to survive as long as it was in bailout mode because the difficulty is that you know throwing vodka at alcoholics just tends to make them more alcoholic and it doesn't affect them and improve their overall condition really what greece has always needed to do was to leave the euro and declare bankruptcy it's the only way that it can feasibly restructure what's going on instead what we have is this absolutely mainly arkell situation where in order to manage to stay in the euro we have a series of political forces in western europe who are desperate not to see their law as the political experiment failed and therefore greece has been left just like cyprus just like othe

jobs a large share of the installment four billion euros is funded by the euro zone and the european central bank the international monetary fund is contributing one point eight billion in return athens has to fire four thousand civil servants by the end of the year twenty five thousand more must be redeployed the impact of worsening unemployment is felt everywhere in greece not least in its drugs clinics pieces of takes a look at the unorthodox way athletes is dealing with the social fallout from the crisis. used to be out of work now he's still unemployed but also on heroin is homeless and has aids he's already tiny chances of getting a job have vanished completely. alone that some start using because they are angry at life no work no money for the same reasons many decide to start selling drugs and up using the needle themselves. every day drugs rock the lives of new people with just one many thought they'd hit rock bottom it's very to hear gunfire that everywhere. and as far as i'm concerned is the worst thing i've done so far. the latest hit on the greek drug market is making even the most e

european bond markets but i should emphasize that many of those options are felt meaning that the european central bank was not willing to pay the interest rates that the banks were demanding now that didn't cause any crisis because the e.c.b. is currently in the loosening mode. if the fed were in a tightening mode and those options were to fail i think you'd see enormous disruptions in the u.s. market i agree with you completely thank you for joining me this is ben steele author of the battle of bretton woods and the director of international economics for the council on foreign relations. coming up we have an interview with veteran futures trader larry williams we get into some shop talk but we also talk about how he turned ten thousand dollars into over a million dollars in a trading competition in one thousand nine hundred seven and exactly how his daughter michelle williams won the medal while working on dawson's creek then i do a break in the set producer of mary david over stealth clothing there is more or less than you think to this story. plus i was a new alert and. scared me a little bit. the

the european central bank that's artificially keeping interest rates low that already stoke all kinds of speculation and bubbles and housing and stocks but you also have the governments coming in and saying we'll give you a tax advantage on top of the free money what happens to prices in that market situation they become completely distorted so you really have to decide what the world has to decide whether they want free market capitalism or free markets of some stripe or whether they want to censor the planet scott economics is right now the u.s. essentially plan from ben bernanke it's essentially planned soviet era economy and the results are predictable you've got millions and millions on the breadline and they called food stamps now and it gets worse from there it's not only government intervention however as they say banks always collude with them and they come in with these complex derivatives complex products that are supposed to their toll you know the consumer is told this is going to lower your costs in the miraculous lee give you all sorts of wealth this is our wealth creat

the european central bank that's artificially keeping interest rates low that already stoke all kinds of speculation and bubbles and housing and stocks but you also have the government coming in and saying we'll give you a tax advantage on top of the free money what happens to prices in that market situation they become completely distorted so you really have to decide what the world has to decide whether they want free market capitalism or free markets of some stripe or whether they want to censor the planet scott economics is right now the u.s. essentially plan from ben bernanke it's essentially planned soviet era economy and the results are predictable you've got millions and millions on the breadline they call food stamps now and it gets worse from there it's not only government intervention however as they say banks always collude with them and they come in with these complex derivatives complex products that are supposed to their toll you know the consumer is told this is going to lower your costs in the miraculously give you all sorts of wealth this is our wealth creation this

it was then followed by the bank of england, by the bank of japan, and later by the european central banksso i'm not suggesting that it will b first-in , first-out, but very likely, and they should not all do it at the same time. >> is that because of the global economic recovery is still fragile, the financial system still fragile? whyshould th continue with these policies to some degree? >> well, the recovery is there, but it is from jig. we are forecasting a 3.1% increase for 2013 and more in 2014, but you can't call it a big massive recovery. added to which the recoveryis certainly stronnger in the u.s. than it is, say, in the eurozone. we forecasting, you know, 1.7% increase in the u.s. this year hen we think that it ill be negative yet again in the eurozone, so there has to be coordination which doesn't mean to see that there will all have to withdrawal and phase out at the same time. >> melissa, do you want to follow up on that? melissa: absolutely. in the speech oday, you talked about th risks, the financial risks to stability of exiting too late. everyone's very focused on the ris

by the bank of england, in europe by the european central bank and in japan by the central bank of japanving effects elsewhere in the world, not just at home. and those effects have been, you know, largely positive. there's been a lot of capital inflows. there's been, you know, increase in credit. there's been certainly the markets have recognized the positive aspect of it. but as there is talk of exit, and there is a bit of uncertainty about when it is, how much of it there will be, there is also uncertainty that is translating into emerging market markets. >> we've seen some pretty violent reactions in currencies and in bond markets. >> right. >> and so, the kind of stability you could see -- the instability that you saw on the way in, we could see that on the way out? >> correct. which is why we are clearly advocating here in jackson hole as much coordination as possible between the central bankers of countries that are doing unconventional monetary policies and the central bankers of the nonunconventional monetary policies. because they are all tied together. >> that's a sort of new

almost all stocks, but particularly the financials, had their heads handed to them when the european central bank put its foot down on the short sellers necks and made money all over the place. the bank stocks soared. it didn't matter whether it was a bank was solvent or insolvent. they all flew up together. i know that you probably have never shorted a stock, but in an investing world that is now dominated by hedge funds, most of which have to make bets for and against whole stocks and whole markets every day, their influence must be taken to account when we try to figure out how a stock can differ from the company underneath. when lots of shorts pile into a stock and then get hit with some unexpected piece of good news from the company, you can get what's known as a short squeeze, that propels the stock to the absurd heights since short sellers have to buy to admit defeat. a lot of people feel that's what happened to tesla, okay, that elon musk company. remember, the market is, well, a market. which means it's dominated by supply and demand. so when there's not enough supply of a given stock or

the european central bank keeping its key rate steady.a news conference at 8:30 eastern time. we will be monitoring that. in corporate news today, earnings from procter & gamble beating the street by 2 cents, revenue talking consensus. cfo jon moeller on "squawk box" talked about the torino he sees. >> i don't think that's the number. i'll wait a while. >> let's listen from cfo john moerl told us on "squawk" this morning. >> frankly, it feels good. i'm very optimistic about the future as we look forward. obviously, a.g. has worked with this team for many years. it's great to be working with him again. we are committed to serve consumers and create values for consumers and shareholders. >> this was procter & gamble's first quarterly report since a.g. returned as ceo. >> if it's from the company, it's from the company reportedly $1.45 for exxon versus estimates of $1.90 that would be a big miss. that's either the analysts problem or the company's problem. we'll get more data on the supposedly, there are no extraordinary items in that number

neither will the head of the european central bank mario draghi.fficials will be here like bill dudley, the president of the new york fed, jim bullard from st. louis and john williams from san francisco. along with christine la guard, the head of the imf and central bankers from around the world. some big topics this year will be whether or not quantitative easing is working and if it is not working, what the federal reserve should do instead. also, is the fed communication strategy adequate? the conference begins with a dinner and then academic papers and discussion over the next two days. and i think one thing i'll be listening for is whether or not the federal reserve believes the economy is strong enough to reduce stimulus for the economy as soon as september or whether or not that will happen later. >> steve liesman. joining us on the phone from jackson hole is neil irwin at the washington post. and still with us is jerry wetman at oppenheimer funds. let's talk about whether the markets should actually care about the jackson hole meeting this

we have seen, i think, over the past month is if we remember back to early july, both the european central bank and the bank of england were particularly concerned about rising yields and sounded super dovish and we didn't really get anything extra from them in august. so i think the contrast between what is happening in the u.s. on the one hand versus the rhetoric we get out from the europe is not quite as stark in contrast and that's another reason why we're not seeing the dollar do very well, it is on the defensive. >> if you pull back, and look at a slightly higher level instead of every tick anding ing ttock a situation where the bank will be poised for tightening versus central banks in other places like europe and japan that are nowhere near getting to that point. i don't understand. what do you think is a fair valuation for the dollar versus the two currencies? >> the fair valuation is higher. we look at some of our targets for the euro dollar rate, we're looking for that to move to 125 over the next 12 months. for the pound, not quite such a large move, maybe down 2 to 150 or so. i thi

german and french banks by the way and now all of this debts are in the european state bank as well as the ease that be as we see the central bank and and it would be differently a loss for the european partners for the e.u. countries but better to make a cut now than a much bigger one in future because greece will be in debt for the next decades not only years and what we think is that. good advice not only for greece for the southern europe european countries as well to return to the old currency because you know this market from the balcony to the north atlantic has no economic. structure that it's the same in roommate or into a vein as it is in france germany and that's a lens so this euro system has failed and we have to mention countries go back to the national currency just to help them safe they can downgrade the currency then and they can compete again with lower prices all right paul hampel election candidate from the alternative for germany party thank you so much for you see here in alt. now snatched by the man nicknamed europe's last dictator it may sound like fiction but that's what's happening right now annab

the bailout is an implicit guarantee of a government bailout.not just by the fed but by the european central bank and even the chinese. they know that they are too big to fail, so they are going to take incredible risks with the money the fed continues to shovel into them. that means there is going to be a crash. it just happens. because the boom is notanchored isreal economic growth, it a bust that is very imminent. by the time barack obama leaves the white house, he will be synonymous with herbert hoover. and a good deal more reason than hoover ever had.it will be evidenced to the american people how ridiculous these policies are. they are a ripoff by a small group of elite such as we have never had before in this country. politically, it means the left and the right can meet at the other end of the spectrum because i am not very far from those one percenters. against the massing of wealth by these top level executives, i think it is destabilizing the global economy and will lead to a crash.they are against it because they are at that -- they are envious. we are both on the same side. similarly

central bank . that that's there's no in sense of entitlement ok well it is in the european in the eurozone there is huge in title in the united states it's kind of dodgy and look at the stations of the contrast where. develop a first date industrial face but it doesn't meet the productivity requirement that's in the southern europe is stronger than the northern and again one of the question one of the most interesting question is whether. conscious emerging corner store will for a little industrial development a welfare state or will they would be just completely new decisions in a pension if you want to run if you want to dress like this i think that's very interesting because we saw the west as a model for a century or so ok at the cold war in between but is what the west is doing a model for everyone else or is it different ways of doing it because when you look at the age it's very different well if the west. can do you know. which clearly showing that. the whatever they have built up is not sustainable at least not sustainable in its present form then i think the questions asked and answered.

central bank . there is that that's there's no in sense of entitlement ok well it is in the european the euro zone there is huge in title in the united states it's kind of dodgy and look at the stations that contrasts with. develop a first date industrial face but it doesn't meet the productivity requirement that's in the southern europe is stronger than the northern and again one of the question one of the most interesting question is whether. congress emerging economies are will for industrial development a welfare state or will there would be just completely new decisions in a pension but if you want to run and you want to dress like this i think that's very interesting because we saw the west as a model for. a century or so ok of the cold war in between but is what the west is doing a model for everyone else or is it different ways of doing it because when you look at it's very different well if by the west you mean. european and europe. and which the north that is clearly showing that. the whatever they have built up is not sustainable at least not sustainable in its present form then i think the q

central bank action in a moment t. the insurers really stand out. the ing will still sell its european insurance unit.ey bowed to pressure from the british government. he came through about some stronger guidance. he says rates in the uk will not rise from their super low level until unemployment falls to 7% in britain. now, unemployment is currently 7.8%, and the bank's own forecast don't indicate it will fall to 7% for three years. and that's as long as they're forecasting. so no rate rises for three years. well, maybe not. the market having sent the pound down, sterling down, then you can see rocketed higher, and interest rates are higher in the uk, market interest rates because they believe the uk economy will recover more rapidly perhaps than the bank of england's forecast and, therefore, rates will rise sooner than three years out. we'll see. back to you guys. >> thank you so much, simon. let's get a check on energy and commodities. sharon epperson at the nymex. >> hey, carl. oil prices just broke $105 a barrel for the wti, the u.s. oil price, and that probably has a lot to do with the fact that

european recovery will be a bit more protracted than the u.s. one has been, partly because you don't have the outright support from the central bank, partly because the embers of the eurozone crisis are still burning. you still have tensions at the heart of governments in countries like italy, spain and portugal. and also partly because banking reform has been slipping. and there is this underlying issue of the transmission of bank funding to small and medium size enterprises. and, again, just in the u.s., if you compare the u.s. banking sector and how that has repaired itself, repaired balance sheets, we have really seen the same magnitude of repair regeneration in the european financial sector. we have a preference for u.s. over the european banks within that sector right at the moment. i think the european recovery will be slower. and is still, i think, prone to, you know, periodic eruptions of the eurozone crisis. i think compared to where we were last year, we're in a much, much better place in terms of economic activity, and also confidence, which in countries like france and italy is very important. >> michael, very quickly. we have seen a