. >> the european central banks needs a new president in october when the jean-claude trichet step down germany's favorite candidate fell after -- fell out of the running when he announced he was stepping down as head of the bundesbank. >> the bundesbank president's resignation shook up the german establishment and february. at the same me, he also withdrew his candidacy to become head of the ecb. the way seems to be going towards the head of the italian central bank. he as seen as a fiscal conservative. he is willing to push countries on reforms. that would make him a good replacement for the german candidate. berlin has not declared whether they would join france and italy in their support of the candidate for the job. >> the u.s. president barack obama is touring disaster zones in the southern united states after the most devastating tornadoes in seven decades. visiting tuscaloosa in alabama, obama survey damage and pledged federal aid to help rebuild. the twisters left at least 310 people dead and flat and entire neighborhoods across seven states. the power was cut to millions. the

. >> ecb president jean-claude trichet has to try to strike a balance between very diverse countries. germany, for example, is prospering and conceal with a risen intere rates portugal, by contrast, is in crisis and will suffer more of the cost of borrowing rises further. the hike represents a compromise. an increase from the historic low of 1% above a very small one. just a quarter of 1%. but is this the first of a series of rate hikes? >> we did not decide today that it was the first of a series of interest-rate increases, and we will contie to do in the fure what we have donin the past, namely to take the appropriate decisions for price stability. >> the ecb said it needed to raise rates in order to counter inflationary pressure. he barely mentioned the state reeling under a huge debt burden, but more people have mortgages and those countries and are set to feel the pinch sooner and harder than the residents of more affluent countries like germany. >> for some reaction we spoke to the chief economist. we asked him if the rst te hike in arlywo yearcan really tame eurozone inflation.