i spoke to ewald nowotny yesterday.ou want to avoid negative debt because you are worried about accumulating losses. the option is to buy longer maturity. that is the big theme in the bond market. the equity's here in europe, off a little bit. here in london, a nice bit of a pop. for the euro, a stronger euro this morning. what is that about? tell me on twitter. ♪ francine: ecb exclusive. negative bond yields are just temporary. the forecast for inflation and the euro. deutsche bank fails the stress test. citigroup passes out right. we talk retail and spending. welcome to "the pulse."

ewald: we have this program and we're going to do it. we should not rule out anything. anna: i am pleased to say that jonathan has returned to the studio. good morning. what is the caution? jonathan: you sit there at your terminal screen and you look at these bond yields and do work out what you're going to buy determined by various different things but for them it is not about profit maximization but it is about risk as well. when you have so much eurozone sovereign debt that is negative and i am -- have a graphic here it is half of 1% in germany. in austria almost one third of government debt is negative. this is a cumulative losses after losses. there is a risk there and if it stays negative, he did mention this, the word future volumes we're having a debate on whether the ecb can carry on the on september 2016. he did not want to get into that with me yesterday. there is a concern for ongoing losses. anna: we do not understand the impact of the losses. jonathan: we still do not have enough detail. it -- there is this thing called the gap where you get this price for

>> so with the affiliated health care they're reaching for ewald's.rles: this cable little late and i reaching -- sensing some bitterness the market doesn't make sense to be. i go back and forth with the research team they say it will rally because they have the trading service. i used to love the company not the stock but the potential but the last time it was a trade in 2008. $12.40. by november it was trading under $8. i felt like a genius. living in for the fundamentals i know it is permitted to readjust our caps to take the risk but try to pick the top because they get gyrations or get nervous that is the biggest the stake people make. i admit it is the easiest but it is a terrible mistake looking back at 500%? >> investors have to have that long term outlook i own bristol-myers for the last 50 years and for years with flat line but then it goes up so investors need to be patient. >> everybody has a point. >> you never go broke booking a profit. so the question is what is the fundamentals? so if the material changes your thesis. but those fundame