to a fiscal union if michael is redirected for a third term how much will her european economic policy change i mean will it become more aggressive she seems to have a lot of weight since she is the most popular person at the moment. yeah it will not become more aggressive but it will be felt more strongly because this fiscal union which is imposed from central bureaucratic brussels will force. the people to accept things that they otherwise wouldn't accept so it will become and so governments and parliaments will lose its sovereign budget rights and that is unbelievable for a confederation of states as europe it is so if she is reelected will she be seeking to firmly establish germany as the center of the euro politically as well as economically no i don't think so i think she will still seek the support of all other european partner countries however the central forces of brussels will become stronger and that is generally a bad. development it would be much better the sovereign states the confederation what have its proper parliaments to decide upon these things instead of somebody

fiscal union is way down the line. that would involve having to change eu treaties, and that is not something that anybody wants here at the moment. we are still in the middle of a crisis. we are a bit more stable than we were a couple of months ago. that's what everybody has been saying here, but this union is not something that we can tackle quite yet. this meeting is about figuring out where we want to go. there will not be any decisions today. >> we have heard that before. thank you very much. >> in another attempt to remedy the eurozone crisis, european finance ministers have said yes to releasing more aid to greece. in a 50 billion euros were freed up on thursday for athens -- >> the 50 billion euros were freed up on thursday for athens. >> there are some who believe it is nothing more than a band-aid. >> emotions spilled over as workers tried to storm a meeting between greek and german officials today are angry over layoffs that are part of broad austerity measures. greeks see the reason to believe next year wil

printing in the car part of the fiscal union in the eurozone would require a massive money printing to make all those things work out didn't mesh together now another trade another trade that's been a long time coming that hasn't yet kicked in yet would be the london real estate trade now in twenty thirteen year suggesting you're predicting that we're going to see a big fall in london property prices again being in the wrong side of this trade for a number of years has been wrong but you say now is the time to go short possibly in london real estate well unfortunately there's no avenue that you can short one in real estate but i would advise not being involved in london real estate i think there's going to be problems with the currency so you can lose several ways on the trade. if sterling goes down against everything else then your investment value is going to go down of the property that you purchase there's a fundamental disconnect here between income levels and property prices which to to go back to the beginning of history you'll see that there's always been a correlation between

whether it be just the banking union which is, as you say, sharing the pain, or whether it be full fiscal union together with political union, everyone has to throw something in the pot. some countries are much more willing, some aren't. really it n terms of being, banking union being one of the key pillars of this potential overall project, we're some way away as we are from the fiscal and political union. >> that's clear. >> in the meantime, what people want is for the central bank to be as expansive and promising expansion in the meantime. of course, that then -- one of the only consequences of the policy around the world is the lack of market pressure on politicians to institute real sort of economic and financial reform. so it's going to be one step step back kind of thing.rd, sometimes the markets get worried. sometimes they don't. >> you're still giving them a half step at the end of the day. >> i think you have to realize, we've not been particularly bullish on the euro to see the least. but you have to realize that the amount of effort that these politicians are willing to put in, the

it may survive thanks to the ecb, but you're not going to get that economy to thrive, and the fiscal union those are very slow going and though they may be moving quickly by european standards and i've been given the magnitude of the problem going very slowly. >> how should people be thinking about this? the average american, and they've been hearing about it for so long and they're not sure it will affect their pocketbook. do you think they will? >> and there's this incredible chance that greece will leave and the dominos will begin to fall. i think that's unluikely to happen as long as the ecb is willing to support that currency, but will it thrive? will those economies boom? i don't think so, i think it will be another year of recession and you will find individual opportunities and the stock picker's market and far as it's a strong growth, they're not there yet. >> thanks so much for joining us. good to see you tonight. >> you heard piers morgan talk about it with larry last week. after school shooting massacre in scotland in 1996 great britain banned virtually all handguns, seized the

and it consists of a spanish program, about anning union, fiscal union, political union, but the absence of the market pressure is causing all of those things to be delayed and watered down. that's really what's going on. we have solved nothing. we have kicked the can. that's worth a lot, actually. that's why the markets are stabilizing. so it's a better situation than it was, but it's not solved, right? nothing has been resolved yet. >> that pretty much sums up the year. i have a feeling we'll sum up 2013, as well. straight ahead, we are going to get third quarter gdp figures out from the uk. we'll bring you those figures as soon as we're back. don't go anywhere. i always wait until the last minute. can i still ship a gift in time for christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express ber 22nd for christmas delivery. >>> welcome back to "worldwide exchange." a setback for negotiations between congress and the white house as house speaker john boehner's plan b fails with just ten days until the fiscal

european union is that there is only one dimension of union, and that is monetary union as opposed to fiscal union and i think what's happened in greece, in spain, is that they benefited from low interest rates because of their reunion, and that meant that they allowed their fiscal policies to get out of line. so it's sort of just the reverse of the problem that we had here that we have here, which was okay, we can raise rates and cut them back. here, rates came down. so the discipline that would naturally occur disappeared when you have a union. >> i thought you at a different point. greece and spain and so forth, could borrow at german interest rates and they went kind of wild. the good old united states of america, we rent historically big deficits. we consumed without settling them. how is this all possible? because the chinese were happily loaning us money at very low interest rates. substitute the words the united states and greece, and china to germany and you have a world scale, the problem in the united states. the problem in the whole world. but let me just, following those comments, you

you're not necessarily seeing the impulse for, say, fiscal union that you might have seen six months ago. >> well, i think what we have seen is that the big quantum leaps we've had in the crisis have been under market pressure. that doesn't necessarily mean we want to experiment too much on extreme market pressure either. i think the actions from the ecb we have to consider welcome. but what we also need consider is if we look within europe today is how can we get the cost of funding down for countries in the periphery. and perhaps if the ecb are thinking about new measures, taking some inspiration from the bank of england, looking at things like the funding for lending scheme could be ideas. having said that, we haven't seen much impact in the u.k. from those measures yet. >> no, we haven't. >> it borrows down to the confidence on europe. and i think that's still going to be a long way in rebuilding. >> in a word, your likelihood that greece leaves the eurozone at this point? >> i think the long distanikeli remains low. i also think the likelihood of greek public finances, that this

and a stand but the problem with the european union fed is monetary union's as opposed to the fiscal union. they benefited from the low interest-rate and that meant they allow the policies to get out of line. just the reverse of the problem that we have here. we could raise rates but the discipline that would occur. >> i thought you would make a different point*. . . there in the midst of deciding if they want more or if they want less. the euro could not survive some kind of central control. more sense of discipline before the crisis than they have head which means some kind of limit on fiscal policy for one thing but it goes beyond fiscal policy. spain had a pretty good fiscal policy. they managed to get in big trouble pouring a lot of money into building houses and that had some kind of oversight of economic policy more generally as part of the price of being in a union. and they wanted to make the union -- without the economic union. it doesn't work. so, the proposals are out there and i think they basically want to move toward more economic union and the cost to do that takes a change

two hundred of the biggest banks in the region now the deal is seen as a step towards a fiscal and economic union earlier i spoke to mike ingram from b.d.c. partners and he believes it will be a long process. at the moment we don't know what metrics that the e.c.b. will actually apply to the banks but eventually fall under its supervision deadline for that now is pushed out to march two thousand and fourteen what's going to happen over the next few months and this is a tentative deadline of february next year is that european banking forty is going to be a zing with local regulators to try and. achieve a degree of harmonization across not just the year but of course the union so this is actually could be quite a long drawn out process but yes i think it is it is a step in the right direction i think with the euro zone it's always about baby steps but it should to some extent reassure markets that you know financial stability for the stability the banking sector is still very much the top the agenda of the euro zone. march twenty fourth enough the deadline for entries but nothing's a long while aw

a banking union which they have elements of now bringing in proper support for potentially failing banks undercapitalised banks which they don't have by trying to introduce some form of fiscal and political union right the way across the entire eurozone which would allow some imbalances that developed to be resolved now that last one isn't going to happen any time soon and it doesn't look like despite whatever pleading or even angry words from european parliament maybe maybe out there will hundreds of thousands europeans the same the same thing they want to see practical measures to sort out the crisis exactly what this president's been saying of course the misery has been causing the austerity measures do you think perhaps their message is finally being heard but least one official in brussels. but it would be nice to think so the measures adopted since two thousand and nice the start of the crisis this idea of basically you impose austerity absolutely everywhere that you demand of countries like greece and spain and ireland and portugal they do everything they can to public spending to whack up taxes for most people to try and balance the books has been an absolute disast

fiscal cliff. speaking to union workers at the daimler detroit diesel engine plant, the president said he is willing to compromise "a little bit" with republicans on getting a plan for economic growth, job creation, and reducing the deficit. but he said he would not compromise on raising tax rates for high-income earners. >> and that's a principle i won't compromise on because i'm not going to have a situation where the wealthiest among us, including folks like me, get to keep all our tax breaks, and then we're asking students to pay higher student loans, or suddenly, a school doesn't have school books because the school district couldn't afford it. >> susie: meanwhile, a ranking democrat on the house budget committee tells "nightly business report" he is optimistic about getting a fiscal cliff deal by the end of they year. maryland congressman chris van hollen talked with our darren gersh, and began with an update on the status of the talks. >> well, the good news is that the president and the speaker of the house are now in face-to-face discussions. it's always better to be talking than not. the o

>> short term, fiscal cliff, european union. that will have an impact on financial services, as regulation. we have dodd-frank, and it's hard to argue we don't need regulation. citigroup has said it. we need, but let's make sure it is sensible. we can end up in a situation where credit is less available for small and medium-sized companies. if you add to dodd-frank, everything that is coming at us, so small button community banks get hurt. small businesses, medium-sized businesses. it is the purpose to punish banks, maybe they are achieving it. if the purpose is to improve the economy we have to be careful. liz: may be the purpose is to make sure that we don't see another fiscal financial crisis disaster the likes of what we saw in 2008. we don't need that again. >> but we don't need to create another set of problems with these unintended consequences. with the amount of capital that banks have to carry with the regulations -- liz: european regulations. >> very difficult to have loans out to companies that don't have a credit re

countries and we would believe that it is important to increase the degree of fiscal coordination to move towards banking union and to generally stabilize the markets within the euro zone but we're not a member of it and it is for the eurozone members to address the problems we are clearly interested to keep that should happen because as i say we are part of a trading block which includes the euro zone forty five percent of our exports go to the euro zone but in your opinion is the exit of so my eurozone members and habitable at this point no certainly not so you don't believe that greece is going to leave the euro zone in the near future but no i don't i think the euro's or will find its way through to a stable resolution in which the financial system is robust which the which growth will slowly build up but this does require addressing some particular issues about competitive or. of different markets and how do you think that should be addressed i think it will be a matter of slow. adjustment of a number of different economic regions and it's important that those issues are addressed so what do you think wou

into the turmoil of the arab autumn the war in syria claimed countless lives and a fiscal crisis all the european union torn apart at its very seams and the problems facing our world today certainly don't offer themselves up to an easy fix what if things had turned out differently what if opportunities were actually. instead of missed well here's our look at the twenty twelve headlines that could have been. diplomacy succeeds in syria ending bloody conflict. instead this was the image of syria the world saw increasingly violent clashes between government forces and the opposition had claimed more than forty thousand lives efforts to negotiate a diplomatic solution fell flat because divisions ripped apart both the country and the international community hundreds of thousands of refugees have fled to neighboring states where many have found conditions to be dismal meanwhile syria's war is threatening to spill over its borders as tensions escalate within and in the region. of told me to try and sanction slashed. to accept. u.s. rules to restrict foreign. mideast peace with israel links to stage with pales

will lawmakers strike a deal on avoid the fiscal cliff by the new year? plus, union members flock to michigan's capital. the changes ahead for the workforce in the great lakes state. first business starts now. you're watching first business: financial news, analysis, and today's investment ideas. good morning and happy 12-12-12! i'm angela miles. in today's first look: the market rallied into today's anouncement from the federal reserve which includes a news conference from fed chair ben bernanke. the dow is now up for the 5th session in a row. the other big news - oil was a gainer for the first time in 6 sessions. explosive details are emerging that fedex was "systematically overcharging" businesses and the goverment. the emailed comments were released in court documents in a class action lawsuit. a fedex official says the documents don't tell the whole story. and shares of rare earth molycorp fell 5% on word the cmpany is seraching for a permanent ceo. larry shover of sfg alternatives joins us now for an early look at the market. good morning to you. and are we wai

i could go on about the fiscal glove, and i will. unionsfter michigan targeting the nation, and i will. trust me when i say, i will stick to business. for starters tonight, i am not just stock on business. what i am stuck on is tell a tragedy like this profoundly affect business in ways you know like a moment of solace. trying desperately to make sense of an unspeakable tragedy, and they can't, no one can. for all the expertise, a complete loss trying to understand this senseless taking of life. so many lives. i don't offer much to explain that. i do predict this. coming when they did to me it will have a profound effect on not just our psyche, but our economy. the shoppers to pause, parents who lost to be in this debt. still intend to make this a special holiday for their family, but maybe a little less focused. i bet you this past weekend, like the state a lot of folks are simply questioning why stop in their shopping tracks to ponder the fragility of life and thinking of those now devastated families in connecticut. they're but by the gr

influence of labor unions in a state that is home to the auto industry and has a long history of organized labor. during a visit to detroit yesterday where he intendeded to focus on the fiscal clivgs president obama waded head first into the union battle. >> what we shouldn't be doing is trying to take away your right to bargain for better wages. we shouldn't be doing that. you know, these so-called right-to-work laws, that i don't have to do with economics. they have everything do with politics. what they're really talking about is giving you the right to work for less money. you only have to look to michigan where workers were instrumental in reviving the auto industry to see how unions have helps build not just a stronger middle sclas but a stronger america. >> well, the legislation has already passed through the michigan senate and is expected to clear the house. michigan's republican governor rick snyder says when the bill reaches his desk, he'll sign it and make it into a new law. >>> first rule of the fiscal cliff talks, don't talk about the fiscal cliff talk. both president obama and speaker boehner are sticking to their mary tore yum to not talk about how negotiati

ran for the recall than he did when he first ran, which i thought was incredible with all the union and fiscal reforms he had that were so controversial. >> exactly. and many people, larry, who wound up voting for barack obama and helped the obama/biden ticket carry the badger state even with the native son on their republican ticket, nonetheless voted for scott walker in that recall election. because they liked what he was doing. very simply, it's making some state employees pay a little bit more for their pension and health care packages, not as much as in the private sector, but a little more, and that way turned a $3.6 million deficit into a $500,000 reserve. reserve being the surplus and the rainy day fund for wisconsin. >> and hold back collective bargaining and made co-pays for pensions and co-pays for health care and stopped the free lunch that was going on in wisconsin. you know, john, i think you're looking at presidential timber. i really think scott walker has to be in that conversation. i know it's very early, but i think he has to be in that conversation. >> well, my friend scott

union-paying jobs. so, according to the fiscal feasibility report that is now on file officially with our city, we havethat there will be over 4300 direct jobs that will be created city-wide as a result of the what r warriors arena being in san francisco. and that is over 2600 that are construction jobs and we announced and went into detail about that last week. but today's announcement has a lot to do more with the over 1700 permanent jobs that will be on in the arena as well as on-site at pier 30-32. the golden state warriors have agreed to a card check neutrality across the entire project site, and this, of course, will guarantee that there will always be a fair process for the employees to choose whom they want their representation to reflect. and that's important as well because that breeds confidence in them that they will have a process that will guarantee them the benefits that they have worked very hard to earn. this card neutrality will apply to operations with 15 or more employees in the arena, and any operations on-site but outside the arena having 45 or more employees, this standard will a

. >>> a new weapon is being launched today in the fiscal cliff fight. three major unionsing tv ads with a message asking viewers to call their elected including senator warner and claire mccaskill. here's the message from the national education association. >> cutting hundreds of billions of dollars from medicare and medicaid will short-change the people who need it the most. so if you don't want seniors to come up empty, call senator warner and tell him, don't make a bad deal that cuts our care. >> joining me now is the federal government affairs director, chuck loveless. >> good to see you, chris. >> you're targeting four politicians here, senator warner and claire mccaskill and two others. why these four? >> we are very concerned that it could include many cuts in medicare, medicaid, and social security. with regard to the two republican house members, both of them have expressed some interest in including revenues as part of an overall deficit deal so we're trying to encourage them in their thinking in this way. >> these ads are running in those states. you also have

union." republicans call the fiscal cliff plan a joke, an insult and break from reality. suffice it to say, it is unacceptable to them. the president's opening round offer includes $1.6 trillion in new taxes, $400 billion in savings from medicare and other entitlement programs, $50 billion in new stimulus spending, and an additional $285 billion to fund depreciation and mortgage programs, unemployment insurance benefits, and payroll tax cuts. >> this extra spending, that's actually greater than the amount they're willing to cut. i mean, it's -- it was not a serious proposal. >> while his aides were on capitol hill offering up the opening bid, the president was making his case in pennsylvania campaign style. >> at the end of the day a clear majority of americans, democrats, republicans, independents, they agreed with a balanced approach. deficit reduction. >> after the president's remarks, i spoke with his main man on the fiscal cliff, treasury secretary tim geithner. >> let me ask you, the reaction to your going up on the hill and saying this is basically the white house

. >> the president called if union dispute and the fiscal cliff manufacturered crisis as he sounded asimistic tone about the possibility of another recession. >> people will spend nearly $200 billion less than they otherwise would spend. consumer spend willing go down. that means you have to let the customers, businesses get fewer profits. they hire fewer workers and it's a downward spiral. >> some republicans are more hopeful of a deal andialing the party to give the president tax hike hikes in exchange for leverage on entitlement cut. >> the focus shifts to entitlement. maybe it puts us in a place where we can do something that saved the nation. >> other key republicans insist negotiators are far from a deal. the president won't take on his party about spending. >> he's afraid to go to a progressive meeting and say if we don't adjust retirement, they will go bankrupt. >> we are told he spoke by phone with reid but no contact with boehner. >> bret: stocks were up. dow finished ahead 15. s&p 500 was up half a point. the nasdaq gained nine. talk about the implication of the looming fis

union. house republicans put forward their plan to cut the u.s. deficit and avoid the fiscal cliff, but the proposal is quickly dismissed by democrats and the white house. and australia central bank cuts interest rates to the lowest level since the financial crisis in a bid to get ahead of sluggish commodities demand. financial policy committee has been meeting. the outlook for financial stability has improved. signs of improvement overall. . few signs yet of improvement, though, in corporate credit. more capital would enonly banks to access cheaper funds. that's their latest thoughts. they see further cuts needed on bankers pay. also looking to see whether we have any construction. the november construction pmi 49.3. slipping to the 50.9 in october. survey data hasn't necessarily matched the hard data either. and this all comes as british chambers of commerce has issued a gloomy prognosis. cutting its uk growth forecasts for next year and 2014 to between 1% and 1.8 saying output will only return -- sorry, to 1% from #.8 saying it will only return to levels at the end of 2014

usually sides with the unions, we all know that, but in this case, a strike that really could have devastating consequences on the economy, particularly in the middle of the fiscal cliff negotiations. do you think the president might be more even-handed here dealing with the unions? >> well, i really don't know. you never know what this president is going to say and what policies are going to come out, but the longshoremen is an influential union. to see him go on the other side of it would be surprising, probably take a step back and not intervene too much. so, you know, it's a look and see and a wait and see, quite frankly. but if this does happen, the ripple effect is going to be tremendous because you're going to see prices go up there as well. and that's going to be passed onto the consumer. so, either way, we're talking about more money out of the pocket of individuals, regardless, you know, how this thing, you know, comes to to be. >> and this could also have serious effects on commodities markets, particularly oil. one of the ports affected houston. a lot of oil goes in on ought of that port. >> yeah, i mean, david when we hear the news reports and inste

unions. >> so many of us are already dangling on our very own fiscal cliffs. >> reporter: speaker after speaker hammering home the same points. >> we are here to fight for a good deal for america's families and for students. >> reporter: that fiscal cliff negotiations cannot result in cuts to social security, medicare, or medicaid. >> how does that make any sense to you? >> reporter: and that wealthy americans should be forced the pay their -- to pay their fair share of taxes. >> tax, tax, tax the rich. >> reporter: when the rally was finished, protestors marched to the offices of house speaker john boehner to deliver a bag of coal an early christmas present nay said from the nation's poor and middle class. >> we believe that speaker boehner is being naughty. >> reporter: people like danielle warner a home health care worker from vermont. >> we can't afford cuts nobody is going to be able to afford that. >> reporter: and lawrence a disabled singling parent here in washington. >> they need to get down to the business of being equal with everybody. >> reporter: matt jablow, 9news now. >> you can

unions. >> so many of us are already dangling on our very own fiscal cliffs. >> reporter: speaker after speaker hammering home the same point. >> we are here to fight for a good deal for america's families and for students. >> reporter: that fiscal cliff negotiations cannot result in cuts to social security, medicare or medicaid. >> how does that make any sense to you? >> reporter: that wealthy americans should be forced to pay their fair share of taxes. >> tax, tax, tax the rich. >> reporter: when the rally was finished. >> boehner, boehner, you don't care. >> reporter: protesters marched to house speaker john boehner to deliver a bag of coal, an early christmas present they said from the nation's poor and middle class. people like daniel warner, a home health care worker from vermont. >> we can't afford health cuts, nobody is going to survive that. >> reporter: and a single parent from here in washington. >> what they need to do is roll their sleeves up and get down to the business of being equal to everybody. >> reporter: matt jablow, 9 news now. >> and tomorrow, three large national labor u