for the future, this move is a real blow. >> it was the most anticipated announcement by the european central bank in years. interest rates cut to historic lows and a negative deposit rate for banks. ecb president mario draghi says he is aware changes may not be popular for those with savings or other investments. >> these are people who signed assurance policies with insurance companies, and they see the value of these insurance policies going down. these concerns are serious. here, the answer is that interest rates will go up. will go up when the recovery will come back. when growth will come back. >> for now, money is cheaper than ever. to encourage lending, institutions will now be charged for parking their money with the central bank. drug he also announced a four-year 400 billion euro program to encourage banks to increase commercial lending. the moves are designed to encourage growth in struggling euro zone economies. >> as regards structural reforms, important steps have been taken to increase the competitiveness and adjustment capacity of labor and product markets, although progress has b

this is actually the cause of the contraction of the balance sheet of the european central bank. divergence of the monetary policies, the fed and the bank of england may increase interest rates while the ecb is ready to do the opposite. it should definitely do something and the market expectations are running high and markets would be disappointed if it didn't do -- >> is there any way the ecb could exceed market expectations? >> at this stage, i cannot imagine more types of monetary policies that have been discussed already. i think the ball would be in the court of the policymakers at the government level. these are the structural issues, both in the labor markets and with respect to banks which are still weaker than, let's say, banks in the u.s. i think this is pretty much as much as the ecb can do. >> petr, good to see you. director of european economics at moody's analytics. >>> as far as the agenda on the united states today, big number out today. the may adp employment report is out at 8:15 eastern. it did forecast a big jump up in nonfarm payrolls reported last month. it w

to need a bigger boat i mean this is what the european central bank has told the market that the fraud is so enormous at this point that in order to accommodate another ten to fifteen trillion dollars worth of credit default swaps and derivatives and such like fraud they're going to expand their balance sheet by ten or fifteen trillion euros they need a bigger boat. thanks for staying with us metal spike things told to deter homeless people from sleeping by the front doors of a luxury apartment block in london have caused outrage after the pictures went viral but the number of rough sleepers having nearly doubled in the british capital in the past three years the issue of over what to do is a proving

investors bought up stocks after european central bank president mario draghi announced early this morning a batch of stimulus measures to boost europe's economy and to encourage banks to lend more in the eurozone. that led to market rallies here on wall street and all around the globe. the dow rose almost 100 points, closing at a fresh record of 16,836. the nasdaq gained 45 points, and the s&p 500 added 12.5 points to the new record of 1940. jeff cutmore is in frankfurt, germany, and has more on those moves by draghi. >> reporter: what we saw today was classic draghi at the ecb. a little bit of jam today and a lot of jam tomorrow. so let's talk about the details today. the key moves were in the interest rates. that ultimately now sees a negative deposit rate here in europe. the other big announcement was related to what they call ltros. these are longer-term funding programs. it's a way of squeezing money into the banks to try to encourage them to lend into the real economy. and credit expansion is the real issue when it comes to europe at the moment. so those were the two major points. t

central bank. it was experimented before. this is a last ditch attempt by the european central bank to give the banks lending again, so the extent, listen, we are charging you to keep the money here at the ecb. we want you to take it out and put into the real economy, and lending to businesses so they can expand and hire, wages will rise, and the economy can grow again. they are concerned about the inflation, and lack of the growth here, and as a result they are taking this step. >> they say it is to fight deflation, we all hate inflation, that means that the things are going to cost more, why when inflation is half of one percent, so they want to increase it? >> basically they are worried about deflation. that you and i might decide i'm not going to buy a car today, i will wait six months to buy it when it is cheaper. i might not by the house for a while. the more people that think that way pull back on the personal spending and the slower the economy will grow. so deplagues has serious implications. they want a sweet spot not too high and not to low and humming along nicely. that is 2%. they are not expecting to get there unti

center for everybody is the european central bank decision tomorrow at 8:30 our time. hat within the data we got today, ceos cut prices for a 26th month in a row. it's the deflation threat that the european central bank will focus on more than anything else. if you look at where we traded so far, actually you can see the way there is a wait and see mode, flattening out across europe, even in germany. close to a record high as everybody waits for what the european central bank will do. the obvious thing to say when it's telegraphed so well, everybody will be disappointed it's priced in. that's obvious. the question is the rhetoric you get tomorrow about future meetings and probably whether you get a big liquidity injection which may not be factored in. the corporate level vw sold stock in order to fund the purchase of the truck maker. trades at $192.35 in frankfurt. finally in london where the conservative government of david cameron outlined what it will do for the next legislative session by giving a speech to her majesty the queen. within the speech she read in the ho

. >> we have had a big day with the european central bank. right now we need to begin our coverage. >> frankfurt, germany. the ecb and mario draghi front and center this morning. in less than two hours we will know whether he will put his money where his mouth is and lower interest rates. guy joins us from there. what has been priced in so far? >> probably a rate cut or a series of rate cuts. article here is the deposit rate. we will go negative. the question is how far negative are we going to go because there are potentially unintended consequences. if the banks do not pass that onto their customers, potentially you could be in a situation were that hits profits. you are talking about bnp paribas at the moment. they need to get that profit going, and that could be a problem as well. it could also affect the money markets. so they had to dip their toe in the water. it will be a very small deposit rate, fractionally -30 >> very quickly, how unified is the european central bank panel behind president druggie -- behind president draghi? to rate

faced with tepid economic growth the european central bank resorting to unprecedented steps, essentiallybank for holding reserves. our own judge andrew napolitano is ready to throw the book at them and he joins me now. you are really fired up about this one, judge. >> i was fired up about it, melissa. it is a little bit in the weeds because if you read the headline to the articles about this it says, ecb, european central bank, to charge negative interest rate. most people would say, what the heck is a negative interest rate? well the european central bank, like our federal reserve is the favorite place for the nation banks to deposit their cash but the ecb is going to charge those banks for keeping their cash in the ecb. almost unheard of. why are they doing that? they want to force them to lend it, to borrowers who are probably uncredit worthy. here we go again. melissa: right. i mow that they have talked, this has not happened in the u.s. there has been talk about it at certain points in various corridors. i mean, do you think it comes to the u.s. and did we learn nothing from the fin

welcome back now the european central bank is moving into unchartered waters with its announcement of negative deposit rates and cheap long term loans to banks now these are historic moves and you see the president mario draghi has said that there are likely more to come so to get a better handle on what's happening in europe i spoke with dr ben steele a senior fellow and director of international economics at the council of foreign relations now dr steele is an expert in international finance monetary policy and economic history and his most recent book is titled the battle of the bretton woods now i started our conversation by asking him if he was surprised that the e.c.b. if you get unanimous support for these new programs take a look at what he had to say. but i think it's pretty significant druggy managed to get the germans on board because obviously that was the area that he was meeting the most resistance it's significant however that the e.c.b. governing council still couldn't do agree definitively to go forward with some version of quantitative easing that is large scale asse

welcome back to the show now the european central bank is moving into unchartered waters with its announcement of negative deposit rates and cheap long term loans to banks now these are historic moves and it used to be president mario draghi has said that there are likely more to come so to get a better handle on what's happening in europe i spoke with dr ben steele a senior fellow and director of international economics at the council of foreign relations now dr steele is an expert in international finance monetary policy and economic history and his most recent book is titled the bad. all of the bretton woods now i started our conversation by asking him if he was surprised at the e.c.b. if you get unanimous support for these new programs take a look at what he had to say. so i think it's pretty significant druggy managed to get the germans on board because obviously that was the area that he was meeting the most resistance it's significant however that the e.c.b. governing council still couldn't agree definitively to go forward with some version of quantitative easing that is large scale ass

welcome back to the show now the european central bank is moving into unchartered waters with its announcement of negative deposit rates and cheap long term loans to banks now these are historic moves and used to be president mario draghi has said that there are likely more to come so we get a better handle on what's happening in europe i spoke with dr ben steele a senior fellow and director of international economics at the council of foreign relations now dr steele is an expert in international finance monetary policy and economic history and his most recent book is titled the battle of the bretton woods now i started our conversation by asking him if he was surprised that the e.c.b. if you get unanimous support for these new programs take a look at what he had to say. but i think it's pretty significant druggy managed to get the germans on board because obviously that was the area that he was meeting the most resistance it's significant however that the. governing council still couldn't do agree definitively to go forward with some version of quantitative easing that is large scale asset pu

we've been anticipating this all week and it's now finally happened the european central bank has introduced a number of different measures aimed at stimulating the eurozone economy measures like negative interest rates and cheap long term loans to banks now these to be credits deposit rate for banks from zero to negative zero point one percent all in an effort to encourage banks to lend to households and businesses european policymakers are trying to counter the chance of deflation in the eurozone the negative deposit rate makes the e.c.b. the first major central bank to use a negative rate so it's pretty dramatic stuff.

about the very wide range of issues facing the world cup both economic and otherwise and the european central bank is moving into an chartered waters without a map to get a better understanding of what's going on in euro and dr ben steele is on the program senior fellow and director of international economic council of foreign relations is filling us in on what exactly is happening over the c.v. and in today's big deal edward harris and i are discussing debt forgiveness and the rebalancing risk in our economy let's get into. our lead story today brazil now for the next couple weeks you can't and won't mention brazil without mentioning the world cup for better or worse and with the kick off only a couple days away protests are exploding throughout the country not really an optimal time for brazil that's for sure now brazil has a lot and i mean a lot at stake here the world cup is the most watched televised event in the world and brazil hasn't posted it in over sixty years so making a good impression is imperative for the country especially in light of the fact that brazil's wizardry of economic gro

. >> ifill: in economic news, european banks will start paying fees on deposits with the european centralk. the negative interest rate could push them to lend the money instead and stave off deflation. the chair of the securities and exchange commission, mary jo white, proposed new rules to rein in high-speed trading. and on wall street, the dow jones industrial average gained 98 points to close at 16,836; the nasdaq rose 44 points to close at 4,296; and the s&p 500 added 12 to finish at 1,940. >> ifill: still to come on the newshour. g.m.'s probe into the recalls of millions of faulty cars. new details in the story of army sgt. bowe bergdahl. plus, new orleans move to all charter public school district. and possible sweeping changes to how u.s. financial markets are regulated. >> woodruff: general motors released its own internal report today about a decade-long failure to recall cars with ignition switch problems. the investigation found a dysfunctional system within the automaker that didn't take enough responsibility for years. but it also absolved the very top leadership of any kind

european banks. liz: yeah. i always remind viewer investors you may not like central banks falsely, as some people believe, printings going to be, wouldn't you then cover the quarterback knowing exactly what he's going to do? therefore, you might not like it, but don't bite the tape. let's talk about equities and what you like right now. you pick out certain sectors, everything from energy to gaming. put up the names that you think are real winners in this opportunity here, and with energy it's targa, materials you like u.s. gene corp., airlines you like delta. all of these names are up some 40% or more year-over-year. you believe they'll go higher? >> we do, liz. and the reason is that you've got secular winners in the case of energy and gaming. energy is growing at 8-10%. a lot of these companies like targa are growing at 20. with gaming, rev-par growth grew at 12% just in las vegas. you've got macaw growing at 15%. there's very few companies out will that have that growth protile. and on the building materials and airline sector, with building materials, some companies like usg are seeing 10% volume growth, and

moscow the mikes and stacey our next they'll be untangling the fraud scandals and golfing the european central bank one of the cars or a ball that's next. recent events in ukraine definitely have a wide range of interpretation both russia and the west accuse the other of doing a lot of meddling some people call those who are fighting out east separatists or terrorists but others call them a people's militia fighting the kiev and this sort of situation everyone has their bias and it's hard to tell what is going on but i can tell you one thing in the sea of opinion the kiev side is using artillery and fact there have been numerous reports of artillery strikes like the one that just a few days ago hit the sales of hope orphanage which was thankfully empty at the time why is our tour such a big deal well if you send guys with guns in the fight they're going to see their target try to kill it but artillery shoots targets they can't even see they just throw shells at a general location and interestingly enough many locations seem to be in pop. it areas of the breakaway republics so who is the actual targ

european central bank has also acted in a nakedly political manner. for example, by backing fiscal austerity in a slump, which ignores economic theory and history. and for exaggerating the likely impact on economies of structural fault. three, the eurozone lacks any mechanism to transfer resources between constituent members. so with no federal budget to smooth asymmetric shocks, fiscal austerity has been the weapon of choice. the problem with this, it's so-called pro cyclical. what it does is exacerbates, makes everything worse. now adjustment based on austerity and internal devaluation, which is what europeans now call deflation is dangerous. first, low inflation, let alone deflation makes it hard to reduce real wages. take spain, they need to reduce their real wages. but if inflation's very low, that's hard to do because nominal wages do not fall. it's almost impossible to cut nominal wages. you need a bit of inflation. two, deflation increases the real value of debt both public and private. raises real interest rates. and this -- can lead consumer

welcome back to the chair now the european central bank is moving into unchartered waters with its announcement of negative deposit rates and cheap long term loans to banks now these are historic moves and you see the president mario draghi has said that there are likely more to come so to get a better handle on what's happening in europe i spoke with dr ben steele a senior fellow and director of international. nomics that be council of foreign relations now dr steele is an expert in international finance monetary policy and economic history and his most recent book is titled the battle of the bretton woods now i started our conversation by asking him if he was surprised that the e.c.b. if you get unanimous support for these new programs take a look at what he had to say. so i think it's pretty significant druggy managed to get the germans on board because obviously that was the area that he was meeting the most resistance it's significant however that the e.c.b. governing council still couldn't agree definitively to go forward with some version of quantitative easing that is large scale asset

european central bank has also acted in a nakedly political manner. for example, by backing fiscal austerity in a slump, which ignores economic theory and history. and for exaggerating the likely impact on economies of structural fault. three, the eurozone lacks any mechanism to transfer resources between constituent members. so with no federal budget to smooth asymmetric shocks, fiscal austerity has been the weapon of choice. the problem with this, it's so-called pro cyclical. what it does is exacerbates, makes everything worse. now adjustment based on austerity and internal devaluation, which is what europeans now call deflation is dangerous. first, low inflation, let alone deflation makes it hard to reduce real wages. take spain, they need to reduce their real wages. but if inflation's very low, that's hard to do because nominal wages do not fall. it's almost impossible to cut nominal wages. you need a bit of inflation. two, deflation increases the real value of debt both public and private. raises real interest rates. and this -- can lead consumer

european central bank has also acted in a nakedly political manner. for example, by backing fiscal austerity in a slump, which ignores economic theory and history. and for exaggerating the likely impact on economies of structural fault. three, the eurozone lacks any mechanism to transfer resources between constituent members. so with no federal budget to smooth asymmetric shocks, fiscal austerity has been the weapon of choice. the problem with this, it's so-called pro cyclical. what it does is exacerbates, makes everything worse. now adjustment based on austerity and internal devaluation, which is what europeans now call deflation is dangerous. first, low inflation, let alone deflation makes it hard to reduce real wages. take spain, they need to reduce their real wages. but if inflation's very low, that's hard to do because nominal wages do not fall. it's almost impossible to cut nominal wages. you need a bit of inflation. two, deflation increases the real value of debt both public and private. raises real interest rates. and this -- can lead consumer

. >>> the european central bank appears determined to pick up the eurozone economy.rsday, it cut benchmark interest rate to record lows and they are prepared to take further action. richard quest spoke with some experts on that. >> reporter: the more unconventional the instrument, the more skill you need to use it. and no one knows it better than the cast of "stomp." >> you have a completely different skill set that you have to develop for each instrument. so as you're developing it, you're discovering what you can do. >> reporter: like these performers, the ecb must be precise, sure footed, calculated. >> we're balancing the stuff that we have to hit specific marks, but also being willing to just like throw caution to the wind and try something out. any given moment where that's no too big of a risk. >> reporter: the european central bank already knows about handling high stakes. take the ltro. two rounds of long-term loans to banks. in late 2011 and early 2012. it helped trample down bond yields. then came the outright monetary transactions. in august 2012, while t

it is decision time at the european central bank. we will be breaking that down with various economists across the two hours. it is day two to have g-7. ryan chilcote will be walking us through what that means. plus we have a host of exclusive guests coming up at 9:00, we have the president coming up. he will be talking about that potential $10 billion record fine for b.n.p. paribas. we also have the central bank deputy governor of russia talking about what the sanction means for the russian economy and what prospects are for the russian economy to grow now. plus an exclues wive the legendary fund manager, bill miller. he will be joining us. he runs legg mason opportunity fund. he will tell us why he is still bullish on equities. what he thinks draghi has to do to get going again. >> as when he had to break, the councel countdown is on for the biggest sporting event on earth. we are one week away from the start of the world cup. check out bloomberg's tournament predictions and results. it provides match analysis for each game. you'll

it just happened to be european central bank today. minus 0.1%, the idea is to force banks to lend. this we have steve moore. this is almost unimaginable. it's hard for me to understand this. of course we are talking about europe and banks and not consumers. can you explat is going on here and why? >> well, you call the unimaginable. it's mathematically impossible. that is potentially what has gone on in europe. thought of what they are doing is putting these as head saying we shall lend out this money. and so you have such a problem in europe. n't nougy toey don't see opportd there's not a real demand for credit in europe. we have a problem of fiscal policy and regulatory policy and the problem is not monetary policy but all of the other that make ends banks not want to lend money. >> so much to talk about. but here is my concern. would that ever happen in the good old usa? >> we are getting pretty close to that, gerri. the interest rates and the ten-year treasury is very low, two and a half precent. the interest rate is really low. and you would have asked me that, it could've hap

inflation is extraordinarily low the european central bank as an overachiever.oo much of an overachiever given that it is under shooting its monetary price stability mandate and deflationary as a possible threat. but ecb behavior is important to be a function of the strategic interaction of government and the political fragmentation. so this takes me to the point about fiscal policy. the euro area has chosen to apply fiscal discipline in a centralized fashion. and i think this path is fundamentally unworkable. if they your own needs to find discipline and a decentralized way to be politically sustainable on the long run. to think about this, consider how different u.s. rules are from the fiscal rules of the your area. the fiscal compact in europe has been introduced into national law, but the process was initiated by the center, by the community institutions. in some cases underdress. and the united states wills' limiting debt accumulation or adopted autonomously by the state's, and this has implications for domestic political ownership. second, community instit

the european central bank's recent action in their attempt to fight deflation and stimulate the eurozone. the question is will it work to get more insight on this errand spoke to ethics strategist mark chandler of brown brothers harriman to get his take on the situation. whether in efforts to add liquidity to credit markets by targeting long term refinancing operations will be successful here's what he had said. i think it's tough to measure how do you know it can be successful member of the e.c.b. did previously they gave these long term operations three years allowed banks to pay them early now if you can offer is these targeted long term operations which are targeted to try to help encourage banks to lend to small businesses and households and i think you will find is that a lot of the banks will not borrow will not take advantage of the program i think that the first l.t. heroes were didn't have a stigma attached to it everybody almost every bank participated in it but now i think that with the european conducting a stress test asset quality review the attempt to normalize bank balan

breaking news, the european central bank has released the slowing growth and looming inflation. to borrow money. a quarter of 1%, they've cut to 0.15%. they cut it ten basis points. also introduced a negative deposit rate. banks will effectively be charged for holding onto their money. ecb will charge banks for holding onto money. they'll force banks to lend out to businesses and individuals to try to stimulate growth. lots to talk about. joined now from cmc market. great to have you on the program. you and i we've been talking about this. we've been it watching a long time. talking about taking action in what seems like eternity. is it the right something? >> i think it's probably the right step in the election direction. it was largely anticipated by the market. we've seen the euro drop 25 pits here. that's not a massive move in the context of 400 we've seen drop from 140 against the u.s. dollar to 136 against the u.s. dollar in the last month in anticipation of this. i think it's moving in the right direction. largely expected by the market. they had to do something because t

federal reserve and the european central bank have set target rates of around 2% inflation as benchmarks for healthy growth. >> the associated 2% inflation with good economic conditions. a strong growth rate is also a steady growth rate. >> reporter: the latest reading on annual infliction was a 2%. but europe has been fighting with low inflation. it fell to half of a percent, well inside the danger zone. the big fair is that low inflation could ful tip into full-on deflation. the kind of scenario that sends chills down the spine. >> reporter: greece, portugal and slovakia is already in deflation's grips. they enjoyed growth fueled by debt in the run up to the great recession. it has made it that much hard for pay down that debt and get their economies back on track. >> when the inflation is really weak the rate of gdp growth is also very weak. it's hard to generate the income and resources to pay off that debt. that's what we're seeing in places like greece and spain. >> reporter: while the threat of further deplacing bolsters the case of lending more money, whether these tools can offe

central banks. the euro is being sold against the dollar and the yen after the european central bank lowered its key interest rates. but dealers are buying the dollar and selling the yen. they are not expecting japan to follow the lead. the boj starts its two-day policy meeting today. let's take a look at what's happening in other markets. in south korea, the kospi is lower. and shanghai's key index is down more than 2/10 of a percent. >> chief negotiators in the transpacific talks are expected to meet in canada early next month. officials from the 12 countries are planning the next meeting for july 3rd for a period of ten days in the city of vancouver. the talks will focus on tariffs on farm products, as well as trade and investment rules. they'll try to narrow their differences on such things as incidetellectual property. it's getting harder for leaders to make decisions. the people at general electric have their sights set on french energy giant. but some of their rivals are trying to spoil their plan. executives at mitsubishi heavy industries are hoping they'll be able to counter the weight of g

thursday, the most anticipated european central bank decision of the year. traders are expecting an array of policy moves like cutting interest rates, and infusion of liquidity to prop up lending and the economy. according to a strategist at nomura, those are already priced in. we have seen the euro weaken in the month of may. three-month low currently against the u.s. dollar. so if the draghi decision may actually have the reverse effect, if all of that is priced in, because according to a bunch of firms, sell the rumor, by the fact, may be at play here. there is a bullish euro etf, trades like a stock, fxe. you can buy that if you think the euro will rebound. or if you think draghi will surprise in a big way with edie monetary policy. you can get bette against the euro. for that to happen, for draghi to actually surprise and it to weaken as desired, he would have to pill out the big guns, bazooka, qe federal reserve trial, asset purchases. this is considered a long shot because of the political impolitics and the excitement and the moves ahead of thursday,

. >> we will start with the european central bank, which was really in focus as the central ank as -- has unveiled package to boost the euros economy. ecb president mario draghi has been under a lot of pressure to do something out of the ordinary to avoid a damaging cycle of deflation. let's take a closer look now what -- at what drug he came up with a. the ecb is lowering -- what mario draghi came up with. the ecb is lowering its benchmark interest rate cut to just zero point 15%. it is also becoming the first major central bank to introduce a negative deposit rate. that is an attempt to boost lending to small and medium-size businesses. loansb is also offering to other banks, but on the condition that banks lend more to eurozone is this is. that, mario draghi said the ecb could take more measures if needed. we are not finished here, that is what he said as he spoke during his monthly press -- press conference in front for. as to what countermeasures the ecb would come up with, earlier i asked jesper lawlor in london. i asked him whether he is firing a bazooka or a peashooter. >> i d

central bank has never done before. they have imposed negative deposit rates on european banks. it's all part of an effort to kick start the eurozone's economy. and it koo major implications here in the united states. our chief international correspondent michelle caruso-cabrera here with the implications. what exactly do we mean when we say negative interest rates? >> so just like you and i keep our money in a bank, we have a bank deposit somewhere -- >> get 0.10%. >> exactly. banks have deposits, their central bank. now the central bank of europe is telling all those banks, if you keep your money here, we're not going to charge you to keep your money here. >> so what they want is for those banks to lend that money out to the consumer and the real estate economy, et cetera. >> exactly. go put it to work. >> you're not going to make money. you're going to lose money. ecb also announcing a targeted ltros. what in the world are they? >> we have built a wall graphic to explain. >> look at that. >> a tltro is, targeted long-term refinance operation. we built it on purpose. so the le

so nobody really forced them to keep their reserve at the central bank and pay a fee to the european bank. the message that is being sent bit ecb is that they want to sow creative market. they want more lending to go to the struggling economies. david: right. >> we'll see if it works. there is some reason to be cautious from here. david: far be it from me to disagree with you, adolfo, you know more about these things than i do, but there was experiment in denmark from july of 2012 through april of 2014. of course denmark not part of the ecb. they tried negative interest rates and the central bank, central bank official said of that experiment, and i'm quoting here, the effect on the real economy has been for all practical purposes zero. so if it didn't work there, why would it work now? >> well, denmark was facing some other challenges at the time. i don't think they only concerning denmark was to revamp the economy. i think they also had some challenges in terms of standardization of the exchanges rates as you, recall. they are not part of the eurozone. i think the real question is a

central bank said b.n.p. was in compliance with laws, rules and regulations of the european union and france. france president francois hollande will bring up the issue with the u.s. president on thursday. the foreign minister has hinted that the fine could impact the transatlantic free trade deal. >> they are putting fresh pressure on the european central bank to help the euro zone economy, this as inflation slowed during the month of may to just a half percent. inflation has fallen steadily in the last year, a sign of weak demand. that is far blow the target rate. it is raising concerns of falling prices or deflation, which is seen as bad news for the economy. the e.c.b.'s governing council will be meeting on thursday to discuss how to responsibility. there is speculation the central bank will take action to boost lending to small and medium sized businesses. now ahead of the e.c.b. meeting, investors were seen taking a step back in the stock markets. urope finished in negative territory. after hitting record highs on monday, the dow and s&p 500 s&p 500 in the united states are in negative

interesting behind the headlines, today was important for the european central bank. yield on the two-year bond down at practically zero. .05% nap as the european central bank effectively injects or leaves on the table in excess of 100 billion euros, $140 billion. not mopping up or sterilizing, neutralizing the effect of its previous bond purchases at the height of the crisis. this is important because you see, if you like, the back room financial conditions in europe are improving all the time. rates coming further and further down. the question, can you transfer that to the real economy to lending to small and medium sized businesses n. that, of course, the big open question. a big shot within the cargo industry. did you know the deigns emerge and french and swiss joining together on what they called the p3 alliance to basically co-chair on their cargo ships around the world. today the chinese, the chinese regulator blocked that after the u.s. and the europeans said okay, because china said, look, you're going to have 43% of the market to asia and we're not sure you'

the european central bank also shows a path different from the federal reserve. yesterday's announcement doesn't change that picture. the constitutional context is the reason for that different choice. that's the subject of the second point. the interaction between monetary and fiscal authorities was famously modeled by sergeant wallace three decades as a contest between fiscal dominance and monetary dominance. high, maybe very high under the fiscal dominance scenario. whereas their low under monetary dominance. in the euro crisis, this game took the form of chicken. creditor governments could create a financial facility and bail out the debtor, or the ecb could buy sovereign bonds. the two actions were close substitutes at least over the short and medium term. and each side was better off if the other made its concession first. and each had a incentive to wait. so the upshot is that the ecb delayed taking aggressive measures much longer than the fed and the bank of england did. the ecb won this contest, right, monetary dominance prevails. inflation is extraordin

built for business. >>> thanks heavens for mario draghi, the head of the european central bank and thet and i heard what draghi said to get europe moving again. i'm shocked at how he's being. deflation as much as inflation which makes sense because deflation helped cause the social unrest that brought the republic in germany and led to the third right and that still casts a long shadow over european monetary policy. draghi is not just trying to save the economy. he has to prove the eurozone could be a force for good and not just a wrecking ball especially in a moment when the european parl am has a big block of ultra far right-wing members that make the illusion more pertinent than ever. i think this time draghi's efforts will work and while i have tremendous faith in what he's doing, the fact is no matter what the central bank ask, it makes europe such a tough place to invest in, and it's coming out of a great recession in part because we started ours earlier and they were totally blindsided initially. ben bernanke, former fed chief saved the day in the u.s. and jean claude trichet, o

on thursday, the european central bank will consider whether to cut interest rates and friday is thebig number of the week. we've got the jobs report coming out. also, friday, the 70th anniversary of d day that led to the end of world war ii. >>> graduation is usually a time for celebration, but you can throw some anxiety in there as well. the prospects of finding a job and having to pay all those big student loans is not a pleasant one. you now have debt average iing close to $30,000. some majors can pay off big time for grads. some, not so much. joining us now with which degrees are worth the cost is sharon epperson. you have millions of students graduating. they're getting out there, looking for the first job. the question is, where are those jobs? >> t good news is that there are job openings out there and there have been some studies, one that projected through 2020, we're going to see about 55 million job openings and about 31 million of those are from bibby boomers getting out of the jobs. and retiring, exactly. and 24 million are actually newly created jobs, so there are oppo

stocks propelled to new highs after the european central bank acts aggressively, doing something neverdone before. >>> incompetence and neglect. that's what a massive investigation by general motors says led to the delayed ignition switch recall. >>> the million-dollar retirement question, will a seven-figure nest egg be enough? all that and more tonight on "nightly business report" for thursday, june 5th. >>> good evening, everyone. you can thank mario draghi for today's stock market records. investors bought up stocks after european central bank president mario draghi announced early this morning a batch of stimulus measures to boost europe's economy and to encourage banks to lend more in the

modeled on misguided thinking on the part of the federal reserve the bank of japan and the european central bank all the central banks have pushed their interest rates down to virtually zero and so what happens there everyone wants to get a yield wants to get a return and so the hot money flows out of the united states senate because in the countries where they can get a higher nominal interest rate like turkey for example and the total amount of money that that's flowed out the so-called carry trade they call it the carry trade you borrow it at almost nothing and invest it some more attractive interest rate this carry trade it amounts to about two trillion dollars it's enormous it has. like what you said aaron it hasn't stopped because it will stop only one u.s. interest rates go up and that's the that's the part of the tapering conversation that is key for the carry trade is that long as interest rates stay near zero or very low in the united states the carry trade will will remain but once interest rates start going up in the carry trade on the lines that it's going to be very destabilizing i

modeled on misguided thinking on the part of the federal reserve the bank of japan and the european central bank all the central banks have pushed their interest rates down to virtually zero and so what happens there everyone wants to get a yield wants to get a return and so the hot money flows out of the united states senate because in the countries where they can get a higher nominal interest rate like turkey for example and the total amount of money that's that's flowed out the so-called carry trade they call this the carry trade you borrow it at almost nothing and invest it some more attractive interest rate does carry trade it amounts to about two trillion dollars it's enormous it has . like what you said erin it hasn't stopped because it will stop only one u.s. interest rates go up that's the that's the part of the tapering conversation that is key for the carry trade is that long as interest rates stay near zero or very low in the united states to carry trade will will remain but once interest rates start going up in the carry trade on the lines that it's going to be very destabilizing in

that)i)$z happened despite some of choppy lackluster data really about the trading and the european central bank meeting, the big one on friday, the may job's report. today, a setback in the labor market as the reading on private job creation last month was short on the forecast. worker productivity down in the first quarter of the year with all that snow and cold paraly paralyzing factories, offices and retailers, but just as winter turned to green we saw some shoots in the economy, maybe not so steadily, but returns to growth. steve liesman has more. >> it was a day of mixed economic data that on balance kept the view that the u.s. economy was snapping back from a winter of severe weather. but the data raised questions about the strength of that snapback. the adp reported that 170,000 private sector jobs were created in may, below the estimates on wall street, for the government jobs reports it is friday. >> i would4? it is disappointing. suggests that monthly job growth is probably still south of 200,000 per month, about where we have been for the past two months. >> meanwhile, the trade def

the attack took place in -- the european central bank has cut the interest rate on overnight bank deposits. this was to below zero. in fact, minus zero point one percent. the new banks will have to pay to keep cash in the central bank reserve. the idea is to incentivize banks to lend to businesses, thereby stimulating growth. still, the knights program. katy will join us again from france. world leaders will be gathering on the beaches of normandy to mark 70 years since the d-day invasion. an unmarked mass grave containing the remains of nearly 800 children discovered in ireland almost 40 is ago -- 40 a desire has sparked for an investigation into the catholic church. >> it was a place where they're supposed to care for unmarried mothers and their children. this is now an unmarked graveyard. the bodies of nearly 800 children about to be here. they ranged in age from two days to nine years old. the church says there is no records of their burial. grave. a mass >> they all buried around here. no cross, no marking, nobody knows who they are. >> it is almost 40 years since the remains were fou

many investors in asia were reluctant to make aggressive bets before the european central bank officials are said to announce their policy decision. major forces in the region finished mixed. some investors turned cautious after the latest data showed that china's service sector produced slower growth in may compared to the previous month. the data initially hurt sentiment in chinese markets but the shanghai composite moved higher toward the close fiblly closing higher .8%, 2,040. buying picked up after china's central bank said it will add liquidity to the money markets for a fourth consecutive week. tokyo's nikkei average edged up to 15,079 extenlding a winning streak into a fourth trading session. still the gains were capped as some participants sold. they're thicking that the nikkei looks a bit overheated due to a recent runup. in seoul the kospi shed more than .6% to 1,1995. investors took profits from two straight sessions of advances. south korean markets will be closed on friday. >>> researchers in japan have taken another step in advancing fuel cell technology. they've create ad

their focus is on the european central bank's policy meeting scheduled for thursday, and the u.s. jobs data on friday. now the shanghai composite gave up more than 0.6% to end at 2,024, its fourth straight day of decline. investors sold property shares and they became more concerned about the weaker demand in the country's housing market. in hong kong, the hang seng index closed down 0.6% at 23,151. shares of casino operators like galaxy entertainment, fell sharply due to sluggish outlook for casino revenue in macau. now meanwhile the nikkei average gained 0.2% to end at 15,067, raising for a third consecutive session. a weaker yen prompted investors to buy export related shares. >>> now a group of japanese regional leaders is pushing for an earlier launch of a next generation train service. they're putting their hopes on the potential economic benefits from the high speed train that is magnetically levitated. the central japan railway company is preparing to begin construction work on the line later this year. the plan is to start the service first between tokyo and nagoya in cen