our presence in this market came as quite an unexpected surprise for italian spanish and dutch. so we were especially pleased to win the best development award at what is essentially the heart of the world building industry. the cannes boat show is traditionally where the globe's top yacht makers go to show off their latest offerings and back in september two thousand and eight the international team of timmerman yachts got validation of their hard work at the glitzy affair the recognition came for their thirty three meter light ice class vessel of course it was enjoyed success with moscow shipyard showing the award with its partners into naval architects in quito to design. those are mostly just play toys for the rich and famous what really interests us here is a new line of multi-purpose craft while merely a little less sexy than making yachts they're important for the safety of waterways everywhere here a pair of n.p. before teens are under production once completed they'll like the patrol the shorelines or assist in search and rescue operations however here the cream of the

spanish and italians may have to bear their pride and formally apply for a bailout from the esm and esfs. if the very future of the currency is called into doubt, then the germans may allow the ecb to do whatever, and we mean whatever, is necessary to save the single currency. >> the talk of major intervention has already stopped the slide in the euro against most major currencies and dramatically lowered italian and spanish borrowing costs, down 11% and 17% respectively over the past month. if markets, taxpayers, politicians, and the weather were to line up correctly, could we ever arrive at utopia? >> we could see them buy enough time to slowly and incrementally and very deliberately move towards a fiscal and banking and political union, but unless we eventually get to either debt mutual is asian or debt modernization or both, i do not think we will see an equilibrium in the common currency area. >> for now, the eurozone remains a top issue, but as citizens did however nobly toward a union which you would have forecast in the eurozone. >> a virtual reality star glove that can turn sunl

lot of countries around the world are doing it so i think you'll see a polite no one buying spanish and italian bonds as the chinese do not become suicidal and this is america can be a good business person for germany but i doubt she can do the same for europe well you say investing it's up elements of all the stuff in a euro zone could be suicidal for china you know when you want to say that. the eurozone has quote an absolute political will to stabilize the single currency to tell us if you buy it absolutely not i mean after two i mean the proof is in the putting in after twenty two summit meetings of saying this exact same thing i think everyone is aware of the emperor is very much not wearing clothing the chinese are very polite indeed but they're religious above everything and what they want is more trade with germany petro chemicals and heavy engineering cars the wherewithal but what they don't want is to be saddled with the insanity that is of the productivity of italy and spain compared the productivity of germany everyone they cannot read the tea leaves after twenty two times with thin

. >> for now, the markets appear, about the ecb's plan to buy spanish and italian bonds. it is unclear if it will provide more than temporary relief. >> european stocks at a new four month high. >> trading will see action on the bond market to ease the debt ridden countries. the german that could climb to the highest close since april and the spanish rates have been in the best mode because spain would profit from a bond-buying program that would even make them swallow the bitter pill of asking for help from the rescue fund. there have been signs of relief for the spanish and italian bonds going down. >> a quick look at the market numbers, we had a good day with a lot of green going around. we will give you more details on our web site. >> first, a look at the international monetary fund beginning talks on secured loans and delegations from the imf which -- a delegation is expected to go to cairo to discuss the terms for support work up to 2.5 billion euro. the deal would add credibility to planned economic reforms which are needed to restore investor confidence in egypt.

do something we would consider good meaning a pro-growth save or initiative that brings down italian, spanishelds and usually plummets right before the germans put the kibosh on anything that could go right. that makes sense. because right now gold certainly is a barometer for european inflation. last week, the day before european central bank chief mario droggi's pledge to euro, before and broke out of the trading range. that makes sense because they're advocating an inflationary course of action. angela merkel, german chancellor, denied her own stance against bailing out countries. i like gold action today. if gold goes down tomorrow, let me tell you something, that's a signal the era of unity and good feelings in europe, it is off, which means i expect to get hit again. conversely, a rally in gold tomorrow would be a very good sign for all stocks worldwide. of course, because of the preeminence of europe the second indicator on my dashboard is the euro, itself. as measured by what's known as the fxe. put that symbol in. i want to see it hold above $119.70 level. that's the recent low. $2.6

that means buying italian bonds here. buying spanishll. >> i was going to say quickly. >> long term the fundamentals are much better where they are in the case of spain. so italian front end yeels. we may be more comfortable there than say in spain where there is a lot of risk in front of you. maybe a little bit more risk reverse there. contrast that to the other side of curves. we look at what's going on in germany. definitely expect a steepening there where long and german yields have to go higher if this is going to be successful. >> twice you have mentioned germany and i don't blame you. the whole conversation should be about germany. how do you think that plays on? >> review of the constitutionality. it is the big bail out vehicle. it's going to hold up until that point. what is the market expecting? we're going to get something similar to what our supreme court did. no it's going to be yes but. the key is what is the but. it's going to be a yes. we will get through that up until that point we will have to be cautious because there

what happens when the larger credit default swap markets that are now structured built around italian debt spanish debt french debt even u.s. debt if those ever got triggered nobody has any idea what could happen next but it's very clear that the chance of a big gigantic counterparty failure like we saw with a i.g. which was counter party to a whole lot of credit default swaps on of relatively minor amount but still significant amount of mortgage backed securities well i think the fear is we're looking at something like aig but multiplied by ten and that could well exceed the capacity of central banks even to step in and fix it if it broke hard enough fast enough deep enough wow so that is a real real crisis moment we've talked a lot about central banks but i do want to get into what efforts they're making now because we just saw the fed come out not with some big q.e. measure but with operation twist which changes the composition of the fed's balance sheet but doesn't add to it so what exactly does this do dr martin say and does it do anything for that to prop up the economy does it do anything a

the ecb plans to start massive bond buying to shore up spanish and italian bonds yields and warned it could be addictive like a drug. that's a quote. simon, what is your take on this and mean more importantly perhaps for next week's crucial ebc meeting? >> two things. it means two things. the fact that he is thinking or considering resigning, the faac of the headlines is moving towards the bond buying. there's no smoke without fire. there are -- you see it from the counsel members speaking today and something is coming and big and start this announcement next thursday, september. equally, though, you have other news reports saying because of the tension with this man, the head of the bundes bank angela merckel asked them to delay asking for aid. they have to ask for aid before the bond buying can occur for the ecb. >> exactly. >> yes, it is coming but it is not coming as fast now as perhaps we thought 24 hours ago and this market, sue, may be disappointed come thursday. >> don't you think the market is set up for more than perhap what is's coming next week? it's almost priced for perf

dollar on hopes the european central bank will soon start buying spanish and italian bonds to contain the eurozone debt crisis. >> spanish borrowing costs fell today and portuguese bond yields declined to levels not seen before the government agreed on a deal. traders trading on reports that ecb was drawing up plans of a bond buyout. >> even before spain's bond surprise, fresh rumors began cropping up of other potential good news, that the european central bank was considering buying government bonds from spain and other troubled eurozone economies. ecb denies any such plan, but traders are not buying it. >> where there is smoke, there's fire. it seems likely. at least we are hopeful that ecb could take steps in the coming days in the direction of buying up debt. >> other traders think madrid's borrowing costs are falling because the market expects madrid to ask for help from the eu. >> if it is true that a bailout is being discussed or has been agreed, i think expectations of that happening are behind interest rates going down. >> spain's eurozone partners have already agreed to a 10

some time it makes sense for the ecb to provide short term temporary support in the form buying italian, spanishet cetera, sovereign debt. >> we just saw the two year in spain yielding 4.5%. that was over 7% not long ago. talk a little bit about the strategy of targeting the short end. why and will it be effective? >> the short end -- used that term twice. they have to roll over the debt. for example if they are doing a bill issue or short term bone issue and rolling over ma during debt it's important they can plates. if the markets are not convinced that support is there from the ecb or eurozone political body they won't be willing to buy spanish debt. it does look to me there will be some request maybe indirect that results in the ecb buying bond in the secondary market. it was more pessimistic than it needed be. >> initial reaction. >> how important that it may be unsterilized. if they do it it would be much more like proper kwrn emp qe. >> it looks like there's unified action coming together. we'll support the southern eurozone. the domestic politics are very important here especially in ger

expectation is never that we walk away being able to speak even rudimentary french or german or italian or spanish or whatever the class is. i left prison thinking that was at and if my kid takes a foreign language in school he will finish high school and be able to speak that language or actually just has no choice. that is one of the best parts of the book to me. >> kind of like funny and an unusual for in. the other thing i wanted to mention that is really evident with the way i am listening to you speak and also some of the words you have chosen in your book, it is interesting in the vernacular they are using, the words we use to express certain things or describe the certain things that are not necessarily known, someone else hasn't been to the prison system. coming home not sure how difficult it was for you but for me to enculturated and assimilate to different environments and still continues to be that. >> two things. how quickly i will answer this question and if anybody has a question you have to ask it now. when i was 16. the thing is when i got walked up nobody had a cellphone. three p

and then we will fight and we will fight the short term of the italians and the spanish bull marks. ncidence that as we sell graphed all week, as we knew would happen the italians and the spanish have gone into their own meeting now. as that ecb news conference concludes in madrid and we will wait and see whether they will indicate they are going to ask for assistance at the end of it. i think things are moving fast here. they're not fast enough for the traders. >> i agree, simon. i think one other big thing that's changed and made this where it's at today, it wasn't there even last year yet. and that is that you finally drag germany into the recessionary potential. they're now looking at recession, not just somewhere else in the region or problematic for somebody else. they're looking at their own economy sinking. and i think that's bringing a change of attitude among germans in general and will allow the flexibility for merkel to accept broader stimulative measures throughout the region, not necessarily to save italy or spain but to save germany. that's a big difference from where

italians and spanish may not go for the bailouts.e already know it is really not you. let's have a look at where we are in italy and see some of those big -- smaller financials actually moving substantially again today. you see exaggerated moves on bpms stock. they have been beaten down. other financials around europe moving today -- low volume, therefore, extended moves potentially. maybe not as significant as if it was happening in september. rick santelli says we could go 500 minutes on lower to do next month. you can see the other financials, ing, aegon made gains. >> thank you. let's check with sharon epperson. big news with oil and gold today. >> big moves across the board. commodities. since i have been back from vacation it is amazing to see every commodity nearly on the upside in this session. part of it as was mentioned verbal intervention. i love that phrase. that's what traders are talking about. the words from german political leaders looking at the small consensus, possible eurozone bailout plan. that's something that's

what has kept this summer, and allowed this summer to be good, is that the spanish and italians have been able to come to the market at short-term interest rates that make funding affordable, and if there is a deal brewing between the bank and draghi to try to cap short term rates in italy and spain, that will be a catalyst for markets to move higher. if it doesn't turn out to be the case, then we have wrongly anticipated, and the markets will have that traditional september correction. >> is that a reason, perhaps, to be cautious right now. you had a nice run all summer as we just highlighted in this segment, and all of these unknowns, what do you do right now in the face of that? >> if you're a short-term player, you want to take something off of the table. i think there are some things that boosted the markets. we have the ecb president draghi saying we're going to do whatever they need to do to preserve the euro. those are the two things that took the markets up, it's priced in now, as you spoke about there are many things in september. i would say the key is the meeting around s

investigators were encouraged early by talk that the european central bank would buy up spanish and italian bonds. banks that do business got a boost, but the rally lost steam in early trade. today, investigators will dig into minutes from the fed's most recent meeting looking for clues about the central bank's policy plans. and a warning of more tough times ahead, dell fell. facebook closed above $19 after one of the earliest backers sold the bulk of his stake in the social network. bad news pulled best buy to a nine-year low. the retailer suspended the profit outlook and share buy backs in the wake of a 90% plunge in quarterly net income. barnes & noble narrowed the losses thanks in part to sales of "fifty shades of grey." and urban outfitters was 50% higher. soybeans rallied to a record tuesday, surging above $17 a bushel. a 50,000 barrel of sludge-like contaminated fuel from a bp refinery in northwest iowa has fouled countless cars and it's made its way into indiana, illinois and wisconsin. and maybe in michigan as well. >>> finally, just how important can a word or two be? county offic

you've got big rallies in italian and spanish debt.the main impetus of why our markets are up so much this morning. >> how much of it is deserved and how long-lasting is this? we've been looking at some three-month charts, you can see higher highs, higher lows, not a a dramatic channel, but a channel nonetheless. is that sustainable? >> well see, for the longest time on this program and others i've been saying i think we need a durable solution to the european debt crisis. i don't know that this is really it. and i think i've got a lot of concerns that we still have a lot of, you know, a lot to do, a lot of wood to chop in europe before that problem is solved and that's going to continue to act as a pall over our markets. you've got an intractable european debt problem that doesn't seem to want to come to an end. but on the other hand you've got american corporations doing exceedingly well. american profitability by and large has been very, very good. we had another quarterly earnings season that quite frankly was good. and the bottom

reports suggest the ecb today will present a plan to purchase spanish and italian debt together withhe euro zone's bailout fund. according to the germany daily the esm would buy the bonds directly from the sovereign while the ecb would purchase them on the secondary market. this is a day after officials warn the ecb against large bond buying. joining us more is hans redeker. hans, first to you, what do you make of these latest reports, and what do you expect from the european central bank today? >> well, i guess that after the announcement mr. rogge did do on thursday, we need to expect some type of road map at least, how to get the monetary transmission mechanism going again. as you know, they have to focus on their european bond spreads. to get those bond spreads down to a reasonable level, it seems to be a target, a policy target and as well the ecb's target. in one form or shape they will deliver, and everything could be executed effectively today. that needs to be put into doubt concerning a plan, a road map. i guess, we can be quite hopeful on that. how is the market going to d

not just shares went down in the euro, but also spanish and italian bonds. >> let's get a closer lookt those market numbers for you. germany's blue-chip dax down sharply on the day, more than 2%. similar for the euro stoxx 50, which was down 3%. the dow jones industrial average is also in negative territory by about a percentage point, and the euro trading for $1.2172. >> 8-has slowly made its way across taiwan -- a typhoon has slowly made its way across taiwan. >> the entire island shut down on thursday because of the extreme weather. >> it has been raining nonstop. the only way in and out of this house is by vote. >> it is horrible. when we woke up at 5:00 a.m., the water was up to my ankles. by 6:00, it was up to my knees. the flood is just coming to fast. >> in the capital taipei, local residents have been struggling to save their homes and belongings from the water. >> my car has been flooded. i have been living here for six years. it is the first time this has happened. outside the capital, at least one man was killed when the road he was walking on collapse. its foundations hav

italian bonds. 5.726. the yield picked up a little bit there. also let's look at spanishyou're still talking about relatively high, incredibly high on these. >> i want to go over what draghi said. he said there will be operations of a size -- of adequate size, concerns over private investors overse over seniority will be addressed and further nonstandard measures. he's saying there will be action from the european central bank. sounds like at this moment they are not prepared to release or say what the actions are. he created a whole preamble, i guess, that said it's unacceptable to do so. it does sound very much like he's promising action from the european central bank. >> talking about the ba zoo ka in his pocket. don't make me pull it out. >> i would be looking at the ten-year spanish bonds, the two-year, see how they were reacting. >> 6.617 was the last ten-year on the spanish. >> there's the italian ten-year. we need the intraday on that. i would be interested to see where we are on that. again, 6617. it was down -- the yields were down quite a bit. >> sounds like he

but as long as they hold their ground especially if italian and spanish debt continues to rally the risknue to grind higher. >> your trade is aussie, sell the aussie at what level and related to china, weak pmis? >> to a certain degree it is related to china. i want to have my stop up above 10495, thereabouts for a move to about 99.50. china does play into that. don't forget since about april, may, chinese equities or the base metals a straight way move to the downside where aussie has gone up and down. it's not purely based on china. it is more of the view that as we move into the month of september, we could see a reassessing of global growth prospects and the outlook for risk assets generally. aussie is often used as a proxy for global growth and as that starts to be reassessed we should see the aussie dollar start to come under a bit of pressure. with that i think it's worth pointing out the conversation you guys were having a couple seconds ago, with regards to oil and gasoline prices, if you go back and look historically on a month over month basis when wti rallies about 15%, that

and mario draghi bringing down the spanish and italian bond rates, once again did nothing.is this a case of all talk, no action? >> you know, i sometimes think about the '60s musical, promises, promises, and this seemed a little bit more of that. there is a structure that says if they take action, they will then provide support. but i think we kind of knew that already. the key is, will the politicians take the action? and so far we have not seen a lot of action. >> you know, i guess one of the big issues for europe is that the ten-year bond in spain rises above 7%, making it that much more difficult forpain to pay its bills and secure the debt. the markets push yield up. >> that is why they have to do it in connection with the fiscal authorities and the politicians. because they have to say okay, fine, we're going to get at the fundamentals. we're going to re-capitalize the banks, much like we did in the u.s. with the tarp program. so recapalize them, much with the support that brought down the risk spread. it has to be the combination of the work in europe. mario draghi h

i think the ecb will certainly be in at some point buying spanish and italian debt. but i don't think it's going to be as soon as the market wants. much of this rally was baseed on what the fed might do, and what the ecb might do. so i think it's very possible the fed does do some easing. it's very possible and likely that the ecb does go in and buy some bonds, i just don't think it's going to be soon, and i think the market is ahead of itself. i think you could see a 5% pullback and upwards of a 10% pullback, but really on a pullback like that, we're looking at that as an opportunity. we want our clients in there taking advantage of a pullback like that and adding to positions. >> susie: let me pick up on the points you made. first of all, about policy action. investors do seem to be banking olt federal reserve and the european central bank doing something. let's say they do. is that a long term or a temporary boost to the market? >> i think that -- let's look at the federal reserve. if they do a qe 3, i doubt theesqueivenes effectiveness as. it's pushing on a strin

herbs, mint, coriander, mexican, spanish, italian. now, put a plate on top, hold it down.e something beautiful. >> half an hour. >> this will last one month in your frig. >> now you're interested. >> i am. >> this is not a husband. this is a pickle. >> what have they told you about me? >> now, the point of this, get the vege in there, use up veg. it's delicious. you can put it on burgers, grilled fish. don't eat the bay leaf. >> i thought it was a magnolia. >> i'm not sure what happens if you have a whole bay leaf. >> that is the wonderful world of pickles. >> so good. >> jamie oliver. >> a month in the refrigerator. >> nbc daytime coverage of the olympics continues right after this. but first your local news. >> sit down and talk to michael after what was certainly a disappointing olympics for him. >> i can look back at my career and say i've done everything exactly like i wanted to. >> so much work and dedication goes into it, your heart and soul. to have it come out that way is a flood of emotions. we asked over 3,000 doctors to review 5-hour energy and what they said i