. >> the closely watched fio -- ifo index climbed by one point this month. only wholesalers and retailers are not sharing the positive outlook. the index takes the pulse of 7000 companies across germany. for more now, we had to the franc fort -- frankfurt stock exchange. positive news on the german economy. has that brought some cheer on the floor there? >> this is indeed a very nice christmas present and a strong signal that the german economy will recover again after its winter sleep, but the dax did not make a huge step forward. the stronger than expected ifo index may prevent european central banks from lowering interest rates again. >> we have had developments also in a libor scandal that broke earlier this summer. tell us about that. >> yes, the news is very bad. ubs has to pay the record fine of 1.2 billion euros in this libor scandal and its manipulation of interest rates. some british banks also have to pay millions of euros, and also deutsche bank is involved, and it is also in focus because exactly one week ago, hundreds of policemen into a bank i

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the ifo institute lowered its growth expectations for the german economy. the federal reserve seems to be quite pessimistic. looking at the u.s. economy, the fed thinks that the unemployment rate will stay very high next year. >> let's take a quick look at some market numbers. the dax closed at 7569. the euro stoxx 50 ended the day just a tad down. the dow jones is currently going down over 1/2 of 1%. >> hong fighting broke out in the ukrainian parliament -- fighting broke out -- >> fighting broke out in the ukrainian parliament. >> there are claims the governing coalition broke parliamentary rules by trying to force through the both. after the disruption, parliament elected a government-backed candidate to lead it. >> gentlemen, behave. >> japan is facing a new general election. >> more on that in a few minutes. first, these other stories making news. japan has accused china of violating its airspace after a chinese government plane was spotted over a group of disputed islands in the east china sea. japan this past fighter jets and launched an official com

also follows something similar with the latest ifo number.o/dollar coming up to the best levels of the day, hit 11.2880 during the session on monday. that is where we stand with that data. good news for the eurozone. kelly, how is it looking? >> it's more of a reaction in the ur % the dow is poised at about 44 points in the open. 13-11 is the level there. over here, the s&p 500 is adding about four points, similar magnitude, 1422 is the number at the moment. we can take a look at the ftse cnbc 300 trade. and we're up about .2%, gain something traction in the numbers. a lot of this has to do with the boundback from yesterday's sell off. it was most concentrated across the periphery in europe. taking a closer look at those bourses today, we are seeing a rebound. the ftse 100 adding better than .11%. the xetra dax better, the cac 40 about .6% better. the ibex, up almost a percent. >> let's show you what's happening with yields. they've been swinging around a little bit in italy and spain. they are lower right now. two-year spanish yields, 3.11.

perhaps you can see behind me we had a leg up right after the efo index -- ifo index came through.he euro/u.s. dollar reacting positively, 132.77. i looked at that. that should be more or less session high. overall, this has been taken positively indeed. the details here especially with regards to the commons from the chief economist interest. first of all,y in further cuts seen from the -- no further cuts seen from the ecb as far as they're concerned at the institute. gdp for the fourth quarter should book in a fall of 0.3%. however, turnaround back to growth in the first quarter of 2,013. -- first quarter of 2013. we did expect this weaker picture in the last quarter of 2012 for germany. interesting also, the different segments in terms of performance. we had a little weakness coming through from wholesale and retail. very good development, though, on manufacturing, as well as construction. now what is driving the index higher the second consecutive month is the expectation index. remember, if you look at the actual businesses, while they're still feeling more positive, are they

another .3% after the ifo out of germany. came in better than expected. again, a good sign for growth. not necessarily, though, for those who would like to see a weaker europe. the ibex 35 adding 1.3%. and the nikkei, as you mentioned, up above 10,000 for the first time in eight months. adding 2.4%. better hope the moves in the japanese government or bank of japan pan out. we'll get the bank of japan's decision tomorrow. but this comes on the day when, remember, it's on the weakening of the yen which we can show you on hopes that that will help the japanese corporate sector. remember, we saw export figures showing a drop of 20% in exports to the use. 15% to china. again, there's a lot of expectation built to this. the aussie/dollar remains the underperformer as we continue to evaluate china's internal rebalancing. now the sterling is stronger, the dollar/yen you already mentioned. and the euro/dollar to get back to the point about the ifo survey is adding .3% to 132.-- 1.3274. we get a rally in the euro. our guest this morning suggested it will be the 150

looking for confidence out of germany's ifo survey. if we can put it up on the screen, that would be a help as i'm working to get it up at the moment. as soon as we get the numbers on that front, i will bring them to you. looks like we're still waiting on that. in the meantime, send in your thoughts, questions and comments about the program to worldwide@cnbc.com. and the biggest news of the morning, we have a deal. after 14 hours of talkes and months of negotiations, an agreement has been reached on a pan european banking supervisor. european finance ministers say they've drawn up plans to allow the ecb to directly supervisor the three largest banks in each country except for the uk and sweden which have both opted out. european leaders need to give their seal of approval and silvia wadhwa is in brussels with the latest. sylvia, it sounds like the meeting went into the late hours of the night. it sounds like the uk and sweden got their way. how significant is this agreement? >> the early hours of the morning. one may wonder whether tha