you told her mind you were talking about the turmoil in the eurozone. slums and if you slept ok you said let's go back to you and brussels here i mean there's been a talk over the last few months of mutual izing the european debt and within the euro zone i mean that was one way out in theory it probably makes sense but politically it's very dangerous isn't it. yes what is dangerous is that you take one step without taking the other steps and what has to be done is that steps has to be taken simple time is leigh now a few things are clear everybody including the spanish government including in the greek government is agreeing on financial dissipate and everybody is now agree also of a growth pact that is more mourning for. growth but within the framework of the measures that have been agreed upon so on the principle of coordination one is agreeing what is lacking is trust between countries trust between banks the trust between banks has to be brought in by the banking union that will be proposed by june twenty sixth and at the same date the germans and t

management is concerned about the risk of greece leaving the eurozone.iggest maker of air conditioners and elevator s gets a small fraction of revenue from greece, united technology stock up a third of a percent in frankfurt. >>> central banks, financial institutions and investors may be bracing for the ripple effect of this weekend's elections, but they may want to consider the tax implications of any potential greek exit from the euro. joining us is the principal at gladtry. thanks for joining us. we don't know what will happen in greece. if it's in the next few weeks or sometime next year, why would the tax implications arise? >> this is an interesting situation. it's something we confronted 13 years ago when the euro was first initiate d. you know, the issue is that when the greeks potentially leave the euro and go on to a new currency, they may, by executive fiat, redenominate all of the obligations of greek players in the country so that, for example, debt instruments and other contracts between parties in greece and outside of greece, those things

that is why it has become urgent to stop the eurozone dominoes from tumbling. to avoid contagion to italy, what is required is a proper cooling of germany's ample resources with those of other countries. but that requires the eurozone to look more like a single country with a single government rather than a collection of nations. if that does not happen -- >> the failure could lead to a complete disintegration of the euro system with terrible consequences for britain. >> initial euphoric the -- euphoria fell fast. the borrowing costs for spain are rising as are its release. it shows investors are worried the tumbling spanish domino could knock italy down. >> for more on these problems that continue to plague the eurozone, with a senior associate in economics program at the carnegie endowment. thank you for coming in. i want you to look into your crystal ball and tell me the chances of the dominoes falling. >> as a result of the spain bailout on saturday by germany, the chances are not that high anymore. the story about spain's rest is more a story of germany do

you see meaning within the eurozone greece eurozone itself remain intact and you know at the same time resolving the problem by the way let stress once again that this is just the beginning of the process of write downs that will happen across the entire eurozone eurozone itself is deeply in debt to leverage and that has taken place in the united states has not taken place in the eurozone at all and as a result of that we're looking at the write downs across the eurozone not just because there is just too much debt i appreciate you for laying out the beginning of this kind of scenario cascading domino effect that you say we're bound to see that's constantine thanks so much he's an economist and coeditor of what if ireland defaults. heavy stuff going on let's lighten it up and on a lighter note it's friday so it's your feedback you guys have lots of fun things to say yesterday we talked about oil and definition no fis wrote that the oil graph we ran through fifty one is crazy wrong i know we didn't consume more than we produced for thirty consecutive years please explain it ok so here i

seven finance ministers and central bank governors met on tuesday to discuss the eurozone precarious banking system ahead of the g. twenty summit in mexico the meeting of officials from france germany italy japan britain the us and canada came amid speculations that spain is now in a situation of extreme difficulty and my need a bailout german finance minister shall be a was at pains to l.a. fears pressroom worried about the looming meltdown the spaniards are doing everything right and nonetheless they are coming under market pressure we need to manage this through close and trusting coordination the press conference had an air of visible hawkishness and there were no clear signals of him in stimuli despite the fact that some governing council members were clearly in favor of the june rate cut mary and john d. once again called for a response from a political leader is the e.c.b. president stressed each of the crisis hit states should monitor their domestic issues more closely before anyone decides on the eurozone wide solution all countries have all countries all areas have to work

you know these slow economic growth if not outright that a session of the eurozone that is call of the fall by governments is going to stay with us for a number of years if you gave a percentage of a chance of greece exiting the euro zone how much would that be and would it be good for greece to come out of the euro zone i would say you know by next theater i would say that is at least a probability the greece exit the eurozone thing about and surely even if they like not in two and a new government is going to try to get a forum that it can all mixtures are coming so sustainable that they will exit and i would say that it could be good for them as well as the exit is orderly. and means that then they have a massive depreciation on that actually called local believe that a store growth to restore excel ballance of the b. damage the banks damage the savings of people in the banks and that's why did they need more funding to make sure that raising all these old believe and the contagion of the rest of the eurozone is mol there so if they could see it that way and it's fine. sunny's all o

and it is most likely what will happen is that the eurozone and the certainly i.m.f. will have to put a stop on greek bonds has been used as collateral in the emergency committee assistance operations with the national banks and also in the e.c.b. and that's the result of the police will not have lots of fun. thinks it's over my will to fall effectively on the payment system capital controls will come in political system will become destabilized once again behavior is the greeks oh it is talking about food they're still going to provisions as we know from the reports from athens and from the us through these there is a capital flight going on that capital flight is going to accelerate through the illegal black market channels where people will be withdrawn from the banks the money where they have access to this money so for example the deposit boxes jewelry and things like that will be thrown out the marketplace the whole system collapses and there's a lot of that that is inevitable that this will have to meet you know there is an opportunity to facilitate default for

unemployment in the eurozone i tell you that much now listen the e.u. you lost their sense of what i see is a cross europe is there as a policy is the austerity of the austerity policies the austerity policies across the eurozone are not working they are making matters worse they must be stopped and they will be stopped because of the election in france because of the pressure of the g seven because of the pressure from the g. twenty we're going to reflate the global economy we're going to take on and we're going to take on extra debt frankly in order to make sure that people can get jobs and we can bring unemployment down it's absolutely vital that we do that there has to be an into austerity that doesn't have to be a banking revolution there has to be an end to austerity and that's what we're going to get in the eurozone use you want to jump in in brussels go ahead yes please first of all i would like to say that you have also of the three agreed coming into force now you have a number of financial directives which will be adopted within now and two m

that we can solve the eurozone is either the u.s. economy come so weak then the dollar weakens and the fed in pretty small me and then weakens the dollar or that finally the european get their act together the fight in the ground leads to a banking union you know this guy doing in that motel is a show restoring girl that. and the other thing is that the restore hope that they eurozone is going to stay together in which case the euro could go to a rally again or among the main downside risks to the global economy you mention of course a very slow economic recovery where do you see the new tigers and what is the present role of brics nations this throng growth to call as the world will be in emerging markets until recently the brics but that always sold some of the rising power as you know turkey or indonesia you know or mexico's not just the brics what concerns about the briggs and other emerging market is in all of them for the federal reserve there is now a slowdown of growth you see it in china city in russia you see it in brazil i

and other things that are stored hope that they eurozone is going to. stay together in which case you could start to rally again all right among the main downside risks to the global economy you mention of course very slow economic recovery where do you see the new tigers emerge and what is the present role of brics nations this throng growth economies the world of being an emerging markets until recently the brics but that i was sold some of the rising power as you know of turkey or indonesia you know or mexico's not just the brics what concerns about the briggs and other emerging market is in all of them for the federal reserve there is now a slowdown of growth you see it in china see iran sitting in brazil in part of this because europe and you are sort of slowing down if not constructing but in part of this because many of these condos are moved away from market oriented but a form of towards them all the low growth companies are better for two as a state but then he's too much government provided so they call on me too much for all of the state own

work together alongside central banks to write the greek wrongs and second reason the rest of the eurozone on the path towards growth and prosperity but this ignores certain realities realities which are just as responsible for the riots we have seen that you see they're just as responsible as they are for that as for the deposit flight from greek banks whatever policymakers think they know about greece greeks themselves know one thing very well and this is that they cannot trust anyone least of all their own politicians pulling their savings out of the bank before they are confiscated or turned into devalued drachmas is only one example of this another can be seen in the collapse of investment within the greek economy after all who in their right mind would put time and capital to work in an economy whose future is so bleak under the current dynamics and yet this very collapse in investment feeds a further collapse in growth so that the economy and the society were made end of perpetual contract of freefall if you were trying to design a depression you probably couldn't do a better job th

you know these economic growth difficult out through the recession in the eurozone that it's call of a fall by governments is going to stay with us for a number of years if you gave a percentage of a chance of greece exiting the euro zone how much would that be and would it be good for greece to come out of years and i would say that you know by next theater i would say there is at least the probability that the greece exit the eurozone thinking about it surely even if they elect not into a new government there is going to try to get a forum in the comics which is becoming so sustainable the day will lag and i would say that it could be good for them as long as the exit is all of the only. means of then there were massive depreciation on that actually called local could be that a sort of good old historic sort of ballance of who's going to be damaged the banks damage the savings of people in the banks and that's why they need more funding to make sure that he's not these old believe and the contagion of the rest of the eurozone is mol this so it does not make you see it that way and

you know these economic growth if not outright that a session of the eurozone that is call of the fall by governments is going to stay with us for a number of years if you gave a percentage of a chance of greece exiting the euro zone how much would that be and would it be good for greece to come out of the years and i would say that you know by next theater i would say there is at least a probability the grease exit the eurozone thing about actually even if they like not into a new government there's another tried to go to for a comic solutions are coming so sustainable that they will exit and i would say that it could be good good for them as long as the exit is all of the only. means that then there are mosques in the shown that actually called local believe that are still a good old historic ballance of who could be damaged the banks damage the savings of people in the banks and that's why they need more funding to make sure that these and all these old believe and the contagion of the rest of the eurozone is mall there so it does not make you see it that way and it's fine and said

second time in two months to decide the country's future with their choice impacting the entire eurozone they're left with two options to side with the steering or to revolt against it the move which could ultimately spell greece's exit from the euro. you know the nation's peace plan for syria is near collapse as observers say it's getting too risky for them to continue their mission and minutes play violence this as moscow denies u.s. claims that a russian military cargo ship is on its way to syria with weapons and troops. and an agent activist say the revolutions in jeopardy and are boycotting the ongoing presidential poll after the military claimed all branches of power for itself as long as it's facing off against mubarak's last prime minister with critics saying the other man's a champion of change. and it's our teacher hats to the person who predicted the global economy crisis the consequences of which are still being felt across the world. mr b. thank you very much for your time in two thousand and six you predicted that there would be a deep economic crisis and six years later we

greece will stay in the eurozone. monday will mark the end of austerity. >> but if you're sticks to its word and refuses to bargain with them, greece could be heading out of the euro. its main rival is a conservative leader. he basically accepts the bailout deal, although argues that the concessions if he wins. there would be a huge sigh of relief in europe. he said the election was a choice between staying in the euro and going back to the drug, -- the drachma. >> he may claim that he wants to remain within the europe, but it is clear that what date -- that, with what his plan, they will not keep us in. >> loans of 240 billion euros, in some european countries, patience is wearing thin. the big new factor this time around is fear. greeks have been told time and time again that, if they threaten to leave the euro, there is chaos, a run on the banks, and instability. there is a dangerous under current in greece. hear on tv, a far-right candidate attack a communist opponents. it is widely accepted that this is a critica

political parties and the world assesses what the outcome will mean for the hellenic republic and the eurozone but are we really looking at a choice between a catastrophic and for greece and lists chaos catastrophe at this point can nothing outweigh the benefit of a default we'll talk about it and on the crisis management side the european central bank reportedly stands ready to act if there is market turmoil the u.k. reportedly will unleash aggressive monetary policy in the face of a worsening euro zone debt storm so central banks are threatening to turn on the spigots. thanks. that's what they aim to do but will they drown us all in liquidity pumping an extra liter of liquidity into a container losing gallons by the day does nothing to change the deflationary dynamic we'll discuss plus it's friday we'll show you the incredibly creative way one of our viewers came up with to distinguish between a head and a proprietary trade once and for all since jamie dimon says he can't that more of your feedback let's get to today's capital account. all right let's quickly recap what we're looking at this

do you want to stay in the eurozone? >> the only thing i can ensure is my vote will be pro-european. i will choose among these parties that have a clear european orientation. >> but what about renegotiating or tearing up the bailout agreement? can greece afford to do that? >> i cannot tell you about specific economic -- speak about specific economic details, but i think that it's now the time to change things and try to work hard in order ensure the strong position of greece inside the eurozone. >> ok. lydia, thank you very much indeed. in fact, let's go to berlin now. we can go to steve evans. lydia learning her german in preparation for finding employment perhaps with a german firm. as far as angela merkel is concerned, she was saying there was no miracle solution that germany could offer the eurozone crisis at the moment. do you detect any change at all in her position? >> i can't detect any change at all in her position. her position is germany hasn't got limitless resources and there will be no renegotiation. having

as the bank of japan waits to see how events unfold in the eurozone. imf officials this morning have made it clear they are for any further aggressive measures by the bank of japan to ease monetary policy. they've also mentioned about favorable position if there should baositn in foreign currency markets. that should really effect the markets today. but maybe see a bit of a range trade. also separately on a brighter note if anybody with kids the tokyo toy show is going to be kicking off. toyota is coming out with a car model which actually goes up to 40 kilometers per hour. however, you need a parent in the back seat controlling the brakes and the steering. that could be interesting. >> sure does sound interesting. thanks for the heads u ran mellegar from the tokyo stock exchange. >>> now, the president of the european commission has called for bold measures to boost banking and fiscal integration within the eurozone. made an address to the european parliament in france. he said the eurozone has reached a decisive moment that will determine its fate. >

you know this slow economic growth if not outright the recession the eurozone that is called the faults by governments is going to stay with us for a number of years if you gave a percentage of a chance of greece exiting the euro zone how much would that be and would it be good for greece to come out of the years and i would say that you know by next theater i would say that is at least that probably rated the greece exit the euro zone thing about actually even if they elect not in june a new government has another tried to go to form that it can all mix issues are coming so sustainable that they will exit and i would say that it could be good good for them as long as the exit is orderly. and means that then there are massive differentiation on that axworthy called upright believe that it's still a good old historic sell ballance of who's going to be damaged the banks damage the savings of people in the banks and that's why they need more funding to make sure that he's not these old only metal down and the contagion of the rest of the eurozone is small there so it does not make a see it

is no i do not see those years unemployment in the eurozone i tell you that much now listen. there since it was a cross europe is there any policy is the all star to the austerity policies the austerity policies across the eurozone are not working they are making matters worse they must be stopped and they will be stopped because of the election in france because of the pressure of the g seven because of the pressure from the g. twenty we're going to reflate the global economy we're going to take on we're going to take on extra debt frankly in order to make sure that people can get jobs and we can bring unemployment down it's absolutely vital that we do that there has to be an into austerity that doesn't have to be a banking revolution that has to be an end to austerity and that's what we're going to get in the eurozone. as a euro twenty twelfth football championships are finally here fans are drawing upon poland and ukraine helping their team well net the silverware but the term is already proving controversial with government boycotts from several european countries threate

summit to try to save the eurozone deemed by some in the media at least as crucial so will anything come of it this time not according to our our guest not a chance u.k. independence party leader and member of european parliament nigel for raj will tell us why and fingers point at germany to save europe but the core isn't immune to the problems of the eurozone in fact new figures show the number of people out of work in germany is creeping up by seven thousand in june and pollsters find support for the euro may be fracturing to the core and fact as of air time it looked like germany was going to exit the euro the euro two thousand and twelve at least and we'll look at how this all impacts the crisis and the supreme court upholds the health care law in the u.s. advocated by obama known more commonly as obama care of corning to the u.s. president. today's decision was a victory for people all over this country was. but is it a victory for really who really won big today we'll talk about it let's get to today's capital account. another in you summit is going on in brussels today and tomorro

britain is outside the eurozone and has not put up much money for the eurozone rescue. it is not in need of rescue itself. there's not much interest in what he has to say. the german government knows that the british economy is intertwined with the eurozone, and therefore, has a huge interest in the eurozone price is being under control -- eurozone crisis being under control. >> the bank of england will be meeting to decide what is going to do on interest rates, and they have decided what? >> no change whatsoever on the record low interest rate of 0.5%. they have had that great for three years. all eyes are on economic stimulus. that is basically printing more money and pumping it into the system. the bank has already agreed to limit of $500 billion. they will not move on that at the moment. we are talking about outside pressure from all corners of the world. britain needs to possibly cut interest rates and introduce more stimulus because the recession we are in at the moment is a little deeper than previously thought. the big worry of britain is what is going on in the

so you know you cannot generalize there are different types of crisis within the eurozone not all of them were necessarily driven by excesses in the public sector of several of them where the binocular by excesses in the private sector because of poor regulations or because i'm of the bank of says that a creator of a real estate than a. in a credit bubble what about the main economic power in the united states you said that economic growth would slow down next year to one one and a half percent do you think that also apart from slowing economic growth the united states runs the risk of seeing pretty much the same what's going on in the euro zone right now. i don't think there will be a fiscal cries in the us even if the deficit than that of a large arising in part because u.s. can print money from us is that this is something the european central bank is unwilling to do because the u.s. dollar still letters of currency so the foreign demand of china that i thought emerging market is financing the large us. current account deficits no country could should be complacent over time if th

let's talk about the eurozone crisis.said it's not going to go much below the levels that we're at now unless we see an explosion in greece in terms of the actual market matters. aren't we kind of waiting for the greece election to clarify things for us? >> that definitely is the wiggle tail on the markets. risky assets will continue to trade in a very vol i wiatile w. on the one hand, concern of a meltdown. on the other hand, you have the expectations or the hopes out there for some sort of concerted policy response. so yesterday was marked by policy response hopes and seems like today is carrying forward on that footing. but then you have renewed bouts, votes, all sorts of other triggers coming out that people might remind people that there is still some risk in mere that things could get worse. so short term we see a lot of volatility and that and he why we still have our tactical arrow on neutral. longer term, 6 to 12 month view, we see corporates are healthy. and so from a credit perspective, that provides opportunit

>> the trading losses at gpm or the eurozone? >> i mean, i'm sorry i take up so many people's time in this loss because it is so big in the global scheme of things when we have to worry about europe. europe is a significant event. i am far more worried about europe than i am about this trading position, and i hope the legislators over there overcome their complications and keep the eurozone alive. >> do you -- can you give us a reading in your opinion as to the impact, for example, on the u.s. economy, should the greeks decide to get out of the eurozone, go back to the drama or should the entire eurozone itself collapse. >> unfortunately, as a bank we have to prepare for all eventuality, we don't want to guess for what happened and i want to make sure we come to the shareholders and communities and say whatever happens, we can survive and thrive going forward. europe, grease defauece defaultt might result in a bank run. to put fire walls in place is not far from happening. if i had to guess at the outcome i think that might work.

he insists he isn't aiming to pull greece out of the eurozone. his main opponent is antonis samaras, the leader of the new conservative democracy party. he wants to stick to the bailout deal but wants to renegotiate some conditions. other leaders in europe support that position. they want greeks to swallow the tough austerity medicine, tackle their debt and stay within the eurozone. anything else could make the single currency bloc's economic troubles much worse. french president francois hollande visited rome thursday and held talks with prime minister mario monti. he expressed his hope greece would respect its promise of financial reconstruction and stay in the eurozone. hollande proposed a french version of measures to resolve the debt crisis to european council president her man von rompuy, they include being economic growth and finances and deepening unity by harmonizing fiscal policies. people around the world will be standing by sunday for updates on the outcome of greece's vote, politicians, economists and investors. ai awe chie da joiuch