then you know the european central bank of the regular month is a policy in a meeting today and it surprises them. well we didn't expect any big changes about the chief money policy of the european central bank there were some interesting details that mr draghi though was sharing during his press conference with reporters he said to reporters that interest rates in the euro zone will remain at the record level of zero percent at least until summer two thousand and nine hundred so of course this gives speculation that after this it could be a change it was also announced at the bond purchasing program which is set to expire by the end of this year will already be reduced this fall from thirty billion euros a month to only fifteen billion euro some months mr draghi also shared some general assessment about the european economy how it's doing let's have a listen to what he set. while uncertainty is notably related to the global trade environment remain prominent the information available since our last monetary policy meeting indicates that the you are economy is proceeding alone is so broad ba

we get a decision from european central bank. we have a g20 weekend meeting of finance ministers. her round of earnings that include tech and european banks and gdp in the u.s. here is quick final thoughts. i am joined by bob michele. want to go over your for convictions. do you believe the federal reserve will raise former times -- for more times and then close? bob: absolutely. that brings the fund rate to two and three quarters to 3% depending where inflation is. that is a real yield of about 0.5% to 1%. that is still generous by historic fed terms, but not overly accommodative. they will have raised rates for 3.5 years. why not step back and see what the other central banks are doing and also see how the economy is doing? jonathan: that takes me to the second conviction. short duration. yields.are bearish on as the fed raises rates and supply it's the market and quantitative eases the tightening yields will drift , higher across the curve. we want to hide in the front end of the curve. short securitized for example. jonathan: do you see that more pronounced in europe or in the

stable by the way before the financial crisis the reserve ratio of european banks was only about one point five percent the european central bank's new rules would increase that figure to up to fifteen percent but some critics say it should be twice that. if a lot of companies default on their loans that bank stands to make huge losses the bank no longer has enough capital meaning its customers and business partners money cannot be secured and the bank risks going bust. the bigger the bank the bigger the impact its failure has on the whole financial system with banks in the habit of lending each other money one failure could trigger a chain reaction which is what happens next decade ago. so what can we conclude governments would likely lends big banks a helping hand again if a new financial crisis pushed them to the brink and that would leave taxpayers pick up the tab. hope it won't be necessary again geraint anderson made headlines as city boy during the financial crisis that's the title of his bestselling book a no holds barred insider's account of life in the city london's banking district reporting on reckless trading

coming up over the next week, a rate decision from the european central bank, plus you have a g20 weekendf finance ministers. another round of earnings that includes big tech and european banks, and the latest reading on u.s. gdp. for some quick final thoughts, i am joined again by bob michele, global head of fixed income. bob, we want to go over your four conviction trades. the first one being you really believe the federal reserve will raise four more times and then pause. why? bob: absolutely, because that brings the fed funds rate to a range of 2.75% to 3% depending where inflation is. that is an all-star real yield of about 0.5% to 1%. that is still generous by historic fed terms, but not overly accommodative. they will have raised rates for 3.5 years, why not step back and see what the other central banks are doing and also see how the economy is doing a year on? jonathan: and to wait it out. that takes me to your second conviction call, which is short duration. bob: as you know, we are bearish on yields. we think as the fed raises rates, supply hits the market, and quantitative eas

european high-yield at a 4% handle. but europe looks good. you have an accommodative central bankhem buying investment-grade corporates. money will spill over to the european high-yield market. we expect yields to go to 3%. jonathan: should we get to the elephant in the building? your boss on a higher floor, talked about companies this week -- zombie companies this week in european high-yield. what is the thinking? bob: it is a reflection of looking at european central banks and trying to understand why they continue to print money and invest in corporate debt. they don't need to do that, and you want to be careful not to entrench bad practices in corporate behavior across europe. so i think it is a valid warning, and i think the ecb will be sensitive to that. so our expectation is at next week's meeting, you will hear more clarity on what the plan for normalization looks like. and by the way, they cannot be happy with their last meeting, when they talked about not raising rates until the end of next summer, and then seeing a rally. jonathan: i am going to what i consider a big ca

then you know the european central bank of the regular policy meeting today and it surprises them well we didn't expect any big changes about the cheap money policy of the european central bank there were some interesting details that mr draghi though was sharing during his press conference with reporters he said to reporters that interest rates in the euro zone will remain at the record level of zero percent at least until summer two thousand and nine hundred so of course this gives speculation that after this it could be change it was also announced at the bond purchasing program which is set to expire by the end of this year will already be reduced this fall from thirty billion euros a month to only fifteen billion euro some months mr draghi also shared some general assessment about the european economy how it's doing let's have a listen to what he said. while uncertainty is notably related to the global trade environment remain permanent the information available since our last monetary policy meeting indicates that the euro or economy is proceeding alone is solely be used groups.

and mario draghi the new and departing directors of the european central bank sent a secret letter to bonus going to be exposed by the korean adela's newspaper. they remind him of the basic measures expected of italy. structural reform favoring competition and italian bonds including the full liberalization of local public services through large scale privatization. that secret letter. caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. attack one of. the berlusconi government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. the constitutional court intervened and said no you cannot reign should years. legal provisions been repealed as a result of. this calls to european commissioner olli rehn to write to mr berlusconi

and european central bank president mario draghi joined the critics of u.s. treasury secretary steve menuhin on thursday druggy pointed pointedly suggested that the nugent's comments that a weak dollar is good for the u.s. economy was a violation of an agreement reached with washington in october to avoid.

european hage to china's number one investment bank wants to operate freely throughout the uso it needs to be firmly located inside its borders frankfurt is germany's financial capital and home to the european central bank with all the uncertainties surrounding briggs it london is now much less attractive cities like dublin and paris are drawing some of their business but frankfurt is leading the pack so far with twenty four international banks opening new offices there. the european union has asked the united states china and russia to ease global trade tensions saying there is a danger they could spiral out of control european council president donald tusk was speaking in beijing today at the opening of a summit between china and the european union comes at a time when both the e.u. and china find themselves targeted by u.s. house. it's trade tensions continue to flare elsewhere there are signs that the economic relationship between the e.u. and china remain stable the two sides say they're close to reaching a bilateral investment agreement that commitment comes as fears grow over the impact of america's unpredictability. the europe china and the. american president trump and russian president pu

how is the european central bank overstepped its power as part of its quantitative easing program the e.c.b. has carried out a large bond germany is now asked the european court of justice to decide whether the measure would. is intended to stimulate the economy of eurozone states breached the city's monetary policy mandate has purchased government bonds worth two point three trillion euros. the european union representatives have been meeting with foreign ministers of six balkan states in london to discuss their prospects of joining the e.u. the countries include bosnia and herzegovina serbia kosovo and macedonia albania and montenegro by joining the e.u. they hope to generate greater wealth before the western balkans can hope to benefit from europe's economic strength they've got some homework to do. all in all the west balkans are quite a way along the path to membership according to sources in brussels they've made progress on the rule of law and the independence of the judiciary the legislative process is also being brought in line with the european union. but even membership als

i think european central bank would like to prevent that yield curve in version because of the way europeannsurance companies and banks have their investments may within other european country sovereign debt. ramy: does that mean it's a better way, and shouldn't the fed be doing that? constance: this is all uncharted territory. we've never had central bank balance sheets disclose. pox -- abruptly $60 trillion when we add it all up. ramy: let's talk about the biggest risk to the ecb. it seems like on the u.s. side, strong economic growth, were seeing growth in china, depending on what you look at, things seem to be pretty good in most major places. i would say the biggest risk for the global economy in general and the ecb in particular is just that there has been a huge amount of debt that has been amassed around the world since the global financial crisis. low interest rates have spurred a real expansion of debt. so when we look in europe in particular, i would say the most vulnerable country is italy. there is political nervousness about italy, their bond spreads widen out and the refinanc

as the european central bank overstepped its powers as part of its quantitative easing program the e.c.b. has carried out a lobster tail bone purchases germany as the european court of justice to decide whether the measure which was intended to stimulate the economy of eurozone states breached. on a matter of policy not that. that's all from a child of an update for you in the next hour and watching about. climate change. environmental projects. globalization. biodiversity species conservation exploitation. human rights displacement. the global and current local are. global three thousand next on d w. climate change. waist length. isn't it time for good. eco africa people and projects that are changing no one fireman for the better is up to us to make a difference let's inspire each other. going to be environment magazine. on d w. a who do you think is going to be no joke. who matches the scores. in eighteen soccer world cup on t w news. neko case in germany to learn german. published in the. why not learn with him online on the mobile and free to suffer from the w e learning course niko

that this could be a possibility after summer next year in two thousand and nineteen also the european central bank announced that they are going to cut their bond purchasing program that will expire by the end of the year from now thirty billion euros so months to only fifteen billion euros a month on the other hand also chief draggy was saying that he thinks that the meeting yesterday with donald trump and john clune was a success but he is still warning that protectionism remains to be a prominent key factor that also could hurt the economy. in frankfurt thank you. there's been a dramatic fall in profits a dime of the german carmakers second quarter revenues were down twenty nine percent on the year that's even though the maker of mercedes benz sold more cars and trucks. partly to blame for the profit shortfall this comes off the general motors also reported a big drop in profitability in europe dharnas also dealing with a major recall of diesel cars. as mentioned diana is not the only car maker suffering from the terror of saga general motors shares have tumbled as the second quarter profit is

and european central bank president mario draghi joined the critics of u.s. treasury secretary steve menuhin on thursday druggy pointed pointedly suggested that nugent's comments that a weak dollar is good for the u.s. economy was a violation of an agreement reached with washington in october to avoid competitive currency devaluations druggy went on to say several members of the e.c.b. governing council quote expressed concern that this was broader than simply the exchange rate it was about the overall status of international relations right now . in the us aid trump appointee is pushing a major change to the legal process for settling alleged labor law violations peter robb general counsel of the national labor relations board or n l r b outlined plans to affectively demote the regional directors who resolve about eighty five percent of n.l.r.b. cases by placing them in a new smaller tier of civil servants who could overrule the regional managers the changes expected to tilt the system toward ruling in favor of employers. all right let's head back now to dav

like japan it's way higher and one big central bank of the world in twenty eighteen twenty nineteen will go bust probably the bank of japan but could be the european central bank and that will be an enormous catastrophe in the financial sector and gold will be a safe haven play and russia is anticipating this because it's been trying to do trade with the west for a long time fifteen years sixteen years under putin and the west america keep projecting this over to your let's trade let's trade but they keep categorizing and putting russia into the camp of this is why hillary lost and they don't want to do trade america has given up on being a free market economy and wants to be a top down polar bureau driven price fixing central bank led dystopian economic nightmare so russia saying ok fine we'll just keep buying gold until this thing blows well it's not just russia's many countries we're going to get to that in a bit but i think you know there is this notion that when i see mammy is coming when a big major event whether it's a collapsing empire or a massive wave that's going to wipe out half your country is that you know some people have the instin

european high-yield at a 4% handle. europe looks good. you have an accommodative central banku have them buying investment corporate grade. that will spill over to the european high-yield market. we expect 3%. jonathan: should we get to the elephant in the building? bob: absolutely. jonathan: talk about companies this week in european high-yield . what is the thinking? bob: it is a reflection of looking at european central banks and trying to understand why they continue to print money and invest in corporate debt. they don't need to do that, and you want to be careful not to entrench bad practices in corporate behavior across europe. it is a valid warning, and i think the ecb will be sensitive to that. our expectation is at next week's meeting you will hear the planity on what for normalization looks like. at the last meeting talked about not raising rates until the end of next summer and seen a rally very -- rally. jonathan: is that a soft call? bob: it is three and a half percent to 4%. i take your point. i like the 4% call. corporate america is growing again, we are not in

not to say there's anything bad with trade schools >> i don't want to comment the european central bankour fed maybe >> ultimately it will be the fed will get up here and stop you will not get the big info today. now the ecb says we're on track, 2% inflation growth is okay the story for the ecb is sometime next year, which is when they'll start to raise interest rates that will be big but that time is not now >> it will be bigley if we get a 5% gdp number. >> it will be a big number, but the question is how do you trade it here's the story i'm trying to talk to the white house on this one. they don't listen to me, which is fine. president starts talking about numbers, 3%, 4%, 5%, 6% frotgroh if his policies can raise the underlying growth rate from 2% to 2.5% or 2.75%, and i mean not just a quarter or two, but to have an upward shift in -- >> yes >> that's a huge success i'm not sure why they -- i know why they do it, politically these big numbers are big, but 2.5% on a $19 trillion economy versus 2 means more jobs, more wealth it's a huge victory. i would like to see that happen. i wou

worried the fed's rate hikes might put the us at a disadvantage while the bank ofjapan and the european central banketary policy loose. this was not the first time he departed from a long—standing practice of us president is steering clear of commenting on fed policy. those comments from president trump is having quite an impact on the markets. the japanese nikkei taking the cue from wall street, where we saw a sharp fall after the us dollar pulled back from the high year levels. that is it for this edition of asia business report. thank you for watching. this is bbc news. the top stories this hour: south korea's foreign minister tells the bbc a deal on north korea's denuclearisation is not unravelling, but that it could take time. donald trump has defended his relations with russia and said he plans to invite vladimir putin to washington in the autumn. 8000 troops paying scottish rates of income tax introduced earlier this year will receive a rebate from the uk government. 70% of military personnel in scotland pay £1000 more personnel in scotland pay £1000 more per year than their colleagues in the

gills with the worthless italian bonds that are backed by nothing but mario draggy or the european central bank's promises ok so. who's going to be left holding the bag this time cyprus is the the model for sanction deposit confiscations that's why the italians are pulling all their money out of the banks because they know that these bonds are going to default eventually and what's going to happen cyprus being a bail in versus a bail. would be like in two thousand and eight where the government prints trillions of dollars and gives to the banks to bail them out of bail in is when depositors' get their money ripped out these organizations what happened in cyprus so you're saying it will it only takes it they say anything over one hundred thousand euros you have on deposit we're keeping so if you have any money that playing out in italy i see that playing out everywhere i think eventually when the banks fail next time in the united states as well i think that people are at risk because the f.d.i.c which is a federal insurance deposit corporation only has a minute fraction of what they're supposed t

environments to other cycles because you have the big amount of money coming into the market from the european central bankthe bank of japan that caps that premium. interesting in the curve is the second half of the year. today, 30 basis points. be at 15that to basis points for the flattener to make your money. qe occurring out of europe, it e. a -- it is immens the federal reserve has not gone through neutral yet, yet we are having a conversation about the federal reserve having to top next year. why? >> this is a new world. was trying desperately to get real rates up and the markets want no part of it. the structural issues from a -- the structural issues we want to sweep under the carpet. they are not going away. this is going to be with us for a long time, real rates are not rising meaningfully. if they rise meaningfully, we will have a recession. jon: is in a new world? ira: it absolutely is a new world. maybe we are not a neutral yet, maybe we are. --re is no way to actually there are tons of different estimates, my estimate for the %, two te might be 3 more hikes, we a re there. you look at things l

and mario draghi the new and departing directors of the european central bank sent a secret letter to bonus going to be exposed by the korean newspaper. they remind him of the basic measures expected of italy. structural reform favoring competition and italian bonds including the full liberalization of local public services. through large scale privatization. that secret letter caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. attack went to. the berlusconi government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. courts intervened and said no you cannot rachid years. legal provisions to repeal as a result of. this caused the european commissioner olli rehn to write to mr berlusconi again asking for clarification. j

transmitted to the central bank and from there to the federal budget the revenues came mainly due to purchases of greek government bonds under the so-called securities markets program of the european central bank so here is and jill a merkel who kept on you know they cry they protested they riot in the streets of st thomas where they did all that stuff they threw molotov cocktails they did everything and you know merkel has maintained the same. physical posture and face and reaction for the past ten years and continues to say no and in fact profited from it so here's threesome a i don't know why she expects as a hurry what sort of negotiating power she doesn't even have negotiating power because she's not even in the euro at least greece could kind of threaten to destroy the whole euro this is what happens when you have people of parliament and running britain that number ten who are financially illiterate so we spell out quite specifically how germany is going to benefit by this by making negative bets with friends like john paulson and lloyd blankfein against greece and then going the credit default swap and they make negative press against greece and greece collapses and they m

europe this morning investors are waiting to hear from the european central bank this is the rise in interest rates might be on the horizon. the european markets are fractionally better. the cac of the corduroy%. in asia overnight, the close as you can see kospi index up three quarters of 1%. easing trade tensions. president trump and jean-claude juncker putting tariffs on hold as they work to negotiate trade deals. >> over the years the united states has been losing hundreds of billions of dollars that the european union and we just wanted to be a level playing field for farmers or manufacturers and we also want a big enough issue to to be the european union. we think it can be good for everybody. >> the key issues at stake. explosion in the u.s. embassy in the u.k. the only person in your setup the device. the very latest on this investigation coming out. president trump store the hollywood walk of fame. the suspect using a pickax and later charged with felony vandalism. feeling him out of jail this morning coming up. jerry jones says all players will be required to stand during the

in recent comments the european central bank forum on central banking, chairman powell described the state of the u.s. economy saying today most americans who want jobs can find them. high demand for workers should help wage growth and labor participation. looking ahead, job market is likely to strengthen further. gdp is expected to have risen 2.75% for the past four quarters. many forecasters expect the unemployment rate to fall into the mid- threes and remain there for an extended period. according to the june meeting minutes, the participants agreed that the labor market has continued to strengthen and economic it activity has been rising at a solid rate. additionally job gains have been strong and inflation has moved closer to the 2% target. the fed noted that the recently passed tax reform legislation has contributed to these favorable economic factors. i'm encouraged by these developments and look forward to seeing the meaningful contribution to the prosperity of consumers and households. as economic conditions improve, the fed faces critical decisions with respect to the level

the european central bank has said that a one-stop asset purchases, assuming certain conditions are mety the end of the year. raiseen i began to interest rates until at least the end of the summer of 2019. there are's -- they are years behind our process to we have been raising interest rates since december of 2015 to our balance sheet has been shrinking since last october. we think our path is working well. we think the gradual rate increases are has your committee device a strategy for how and when to change the balance sheet role of strategy? i understand your answer earlier. there is a lot of uncertainty and we learn as we go but what is the strategy or is it just that general the we're going to see how this goes and we are going to leave ourselves the flexibility to jump in and change things? mr. powell: we said we would continue things as announced. we would get the and exact terms but it would be a significant economic downturn requiring a meaningful reduction in interest rates. mr. emmer: do you think that -- what data would persuade your committee to speed up slow down or even

>> we are much more significantly down the road in the normalization process the european central bank said they would stop the asset purchases assuming certain conditions are met by the end of the year and would not begin to raise interest rates at least until the end of the summer of 2019. so they are some years behind the process we've been raising them since december of 2015. we think that half is working very well. the gradual rate increases are just about right and the normalization process is working very smoothly. >> has your committee devised a strategy on how and when to change the rollout schedule? there is a lot of uncertainty as we go. or are we just going to see how this goes and leave ourselves the flexibility to jump in and change things? >> they would continue the program as announced and we will get the terms, but it will be a significant economic downturn for the interest rates were supposeclose to but not exactly. i don't know if you will have time but i do want to ask, do you think of the market participants have the transparency they need to make productive invest

environment to other cycles because you have the big amount of money coming into the market from the european central bankthe bank of japan -- that caps that premium. that is what has kept yields down. what will be interesting in the curve is the second half of the year. today, 30 basis points. role and carry which is so in horton, is a roundabout seven bits a quarter. you need that to be at 15 basis points for the flattener to make you money. yet, we are in an environment where we will see all this quantity coming. will we still see them demand from law and bonds? i won't be sit apply -- i won't be surprised. jon: the federal reserve has not gone through neutral yet, yet we are having a conversation about the federal reserve having to top next year. why? krishna: this is a new world. the fed was trying desperately to get real rates up and the markets want no part of it. and i the structural issues we want to sweep under the carpet. they are not going away. i think this is going to be with us for a long time, real rates are not rising meaningfully. if they rise meaningfully, we will have a recession. they

like japan it's way higher and one big central bank of the world in twenty eighteen twenty nineteen will go bust probably the bank of japan but could be the european central bank and that will be an enormous catastrophe in the financial sector and gold will be a safe haven play and russia is anticipating this because it's been trying to do trade with the west for a long time fifteen years sixteen years under putin and the west america keep projecting this over to your let's trade let's trade but they keep categorizing and putting russia into the camp of this is why hillary lost and they don't want to do trade america has given up on being a free market economy and wants to be a top down polar bureau driven price fixing central bank led dystopian economic nightmare so russia saying ok fine we'll just keep buying gold until this thing blows was not just russia's many countries we're going to get to that in a bit but i think. you know there is this notion that when a cinammon is coming when a big major event whether it's a collapsing empire or a massive wave that's going to wipe out half your country is that you know some people have the instinct som

like japan it's way higher and one big central bank of the world in twenty eighteen twenty nineteen will go bust probably the bank of japan but could be the european central bank and that will be an enormous catastrophe in the financial sector and gold will be a safe haven play and russia is anticipating this because it's been trying to do trade with the west for a long time fifteen years sixteen years under putin and the west america keep projecting this over to your let's trade let's trade but they keep categorizing and putting russia into the camp of this is why hillary lost and they don't want to do trade america has given up on being a free market economy and wants to be a top down polar bureau driven price fixing central bank led dystopian economic nightmare so russia saying ok fine we'll just keep buying gold until this thing blows well it's not just russia's many countries we're going to get to that in a bit but i think. you know there's this notion that when a sim amie is coming when a big major event whether it's a collapsing empire or a massive wave that's going to wipe out half your country is that you know some people have the instinc

and european central bank president mario draghi joined the critics of u.s. treasury secretary steve menuhin on thursday druggy pointed pointedly suggested that nugent's comments that a weak dollar is good for the u.s. economy was a violation of an agreement reached with washington in october to avoid competitive currency devaluations druggy went on to say several members of the e.c. the governing council quote expressed concern that this was broader than simply the exchange rate it was about the overall status of international relations right now . in the us aid trump appointee is pushing a major change to the legal process for settling alleged labor law violations peter robb general counsel of the national labor relations board or n.l.r.b. outlined plans to affectively demote the regional directors who resolve about eighty five percent of n.l.r.b. cases by placing them in a new smaller tier of civil servants who could overrule the regional managers the changes expected to tilt the system toward ruling in favor of employers. all right let's head back now to

central bank is meeting what can we expect. the expert exactly we're not expecting to be quite honest big surprises to be announced by mario draghi the head of the european central bank here in frankfurt of course there's always this question of when the policy of the super cheap money here in the euro zone so these zero percent interest rates are going to change and it's almost certain that those won't be changed until earliest next year. but even though traders here on the floor they will still isn't very closely if we might get a hint or an indication of when we could see the change off the e.c.b. monetary policy drag you also shares general assessment how he sees the current inflation situation in the euro zone he always has this target that inflation rate needs to be always here at the level of about two per cent so yeah no big surprises are expected for still well we're listening very carefully you'll be there and you will bring us up to date no doubt than you quote in frankfurt thank you. and facebook shares took a beating after the social media giant reported that use the numbers under revenue haven't been rising as quickly as expected shares fel

environment to other cycles because you have the big amount of money coming into the market from the european central bank, the bank of japan -- that cap's that premium in the long end, and i think that is what has kept yields down. what will be interesting in the curve is the second half of the year. if you look at it today, it is 30 basis points. role and carry which is so in around about is seven bits a quarter. you need that to be at 15 basis points for the flattener to make you money. yet, we are in an environment where we will see all this supply coming. we are seeing quantitative tightening out of europe, so will we see the demand for long end bonds? i would not be surprised if we see some near-term steepening. jonathan: this is a curious situation, that the federal reserve has not gotten us to a real rates world yet. they have not gone through neutral yet, yet we are having a conversation about the federal reserve perhaps having to stop next year. why? krishna: this is a new world. that is fascinating. the fed was trying desperately to get real rates up and the markets want no part of it. and i th

and in the last few minutes the european central bank has announced it's leaving its key interest rate unchanged that keeps it at a record low often zero percent above the e.c.b. said it will be hovering its monthly bond to buyback program that's. about it was that dramatic and then we had a dramatic fall in profits at dime not because it's an ng season the german carmakers said second quarter revenues were down twenty nine percent on the year that is even though the maker of mostly to spend sold cars and trucks dima said trade tariffs were partly to blame for the profit shortfall this comes after german motors also reported a big drop in profitability in europe dima is also dealing with a major recall of diesel cars. and facebook the shares took a beating after the social media giant reported the user numbers driven you haven't been rising as quickly as expected shares fell more than twenty percent in after hours trading in new york following the news erasing one hundred billion dollars in capital of address new was up forty two percent in the second quarter but costs continue to rise

central banks printing money. in the last couple of years we have seen the us central bank raise rates, the bank of england raising rates and europeand be signalling for an exit. should that take place it would be the end of the low interest rate environment. compare that to what is happening to china. we talk to our correspondent in beijing. we talked about them taking pre—emptive action to fend off the trade war. what does that mean in the market? investment in infrastructure and money to be made for business? we have seen the biggest impact in market in the depreciation of the chinese currency, which is offsetting some of the trade tariffs, the currency has depreciated by about eight or 9% and the tariffs are plus 10%. net, net it is neutral for some chinese exporters. that is the biggest impact, the chinese currency. we will watch it closely, thank you very much. we will talk to us about the papers later. still to come... you probably don't know you're using them, but online transaction companies are used by billions every day. we'll be speaking to a company that's rapidly expanding in the sector. you're with business live from

global economy spiral.e gone into a >> reporter: to save greece, the so-called troika, the european central bank, the ropean commission, and the i.m.f. agreed to authorize billions in loaitns on the con that greece enact strict fiscal reforms and austerity measures. public sector jobs and pensions would have to be cut. taxases inc. greece was put on a strict budget. but as bad as it was in 2010, by 2015 it was even worse when a new government came into office promising to end unpopular austerity measures and threatening to default on the loan program if it didn't get better terms. >> at that time greece was on the brink of leavingot only the eurozone but possibly the european union, too. >> reporter: greece was actually considering leaving the eurozone? >> quite openly some of the ministers were advocating a return to the drachma, which means perhaps after greece there would be other countrieshat would follow and the euro would collapse. >> reporter: a domino effect. >> precisely. this would have bn very likely to have effects for the entire financial system of the world. >> reporter: it was a s

and european central bank president mario draghi joined the critics of u.s. treasury secretary steve menuhin on thursday druggy pointed pointedly suggested that nugent's comments that a weak dollar is good for the u.s. economy was a violation of an agreement reached with washington in october to avoid competitive currency devaluations druggy went on to say several members of the e.c. the governing council quote expressed concern that this was broader than simply the exchange rate it was about the overall status of international relations right now . in the us aid trump appointee is pushing a major change to the legal process for settling alleged labor law violations peter robb general counsel of the national labor relations board or n l r b outlined plans to affectively demote the regional directors who result about eighty five percent of n.l.r.b. cases by placing them in a new smaller tier of civil servants who could overrule the regional managers the changes expected to tilt the system toward ruling in favor of employers. all right let's head back now to da