among the headliners we've got, goldman sachs asset manager chairman jim o'neill will join us live at 7:00. then in the next hour, michael spence, his take on the world central banks and what really is driving this market rally. we continue of course for watch the violence in the middle east. deadly protests against the internet video that's angered much of the islamic world. libyan officials now say chris stevens and three others were not killed as part of the spontaneous protests there. >> planned by foreigner, by people who whethill enter the country a few months ago and they were planning this criminal act since their arrival. >> meantime in afghanistan, americans were killed by the very troops they're supposed to be training. the chair of the skroint chiejo has called it a serious threat. senator john mccain yesterday on that. >> it's unraveling because all we tell the afghan people is we're leaving. we're not telling them we're succeeding. we tell them we're leaving. >> we'll talk about both of these major geopolitical stories with david ignatius at 7:30 a.m. eastern. and back i

joining us is jim o'neill, chairman of goldman sachs asset management.hink about you, jim, and you had a long-term perspective i would describe as sanguine and we've had, if you tack it all one way or the other, we bring you on and say oh you've changed, but all in all you've been sanguine and sanguineisity was the place to be. >> maybe i should retire gracefully now. >> that wouldn't work for us very well. please don't do that. but is there a day of reckoning coming? i talked to some people over the weekend that have traveled all over europe and they say the euro is not coming back down and there's not going to be breakup and anyone who thinks we're going to parity is miscalculating. >> that's been my view all along, as you said earlier. i just joked with a couple of clients this morning but i meant it on the line seriously, you have to distinguish on the euro the amount of subjective view of what it should or should have been with, from what is an objective view of what is the reality, and you get so stuck in the idea that the euro shouldn't have happe

. >> jim o'neill from goldman sachs has talked about that. >> it's defied expectations. >> when the euroit we was at parity with the dollar and it would be good for the situation around the world. >> i worry that strategy on the part of europe would be effectively helping the european economy at the u.s. economy's expense, in that -- >> i think that's a fair concern. >> one of the things that's been, one of the better parts of the economy has been the export sector manufacturing. >> i agree. >> and i would hate to see that come off because europe needs to rebalance itself. >> jim o'neill also -- >> thinking of best interests, they might well do it. >> -- mentioned that would create a problem with the yuan. it would create a series of problems. i don't know that the ecb should be so concerned about that. take a look right now the euro at $1.2633 on the news. >> it strengthened. i think it's defying this, i think there's a bid out in the market for a weaker euro and when we don't get these things that people expect to happen at least over time it tends to strengthen it and of course when b

and, ok, goldman sachs jim o'neill suggesting on cnbc he does believe, actually, germany will go to amarkets are closing now. >> having said that, most people in europe think that we will get through that constitutional ruling. therefore, the markets will stay along without any great difficulty. interesting more americans seem to worry about it than arguably they do on the ground there. today is an interesting day. as we await the constitutional move, the big question for many is whether, indeed, italy or spain will come forward now that draghi laid out the plan and request a bailout that could lead to the ecb intervening in their bond markets. maria bartiromo importantly has an interview with the italian prime minister that she recorded in italy in late -- on the edge of late promo. he told her because we appealed to europe to set up new mechanisms that could help countries in difficulty doesn't mean to say italy will necessarily apply. take a listen. >> under the current -- i believe what italy is doing in terms of domestic policies, both budgetary -- i mean fiscal discipline and st

jim o'neill, you may have seen him on squawk box earlier on from goldman's saying he thinks thursdayant when we get the flash pmis and therefore an indication of just how rapidly europe is heading into recession or if perhaps there might have been a recovery because of what was being said by draghi during the period in which they polled. spain is the issue. when will they ask for a bailout. they've announced tomorrow they'll auction 3.5 to 4.5 billion euros of notes. 12-month and 18-month. thursday, again we come back to thursday, they're going to be selling some of the bonds. presumably at the 10-year there. after all the rally we had on the spanish bond market today, there is some selling. just some profit taking there. therefore yields are higher. you can see on the 2-year we've moved audiotape little bit. 3.43. on the 10-year, again, yields are just marginally higher. above 6%, though, importantly as, of course, the spanish test whether they can clear some of those bonds later in the week. presumably like last time they'll have sewn up those deals already with the banks we assume

o'neill, the icemaker cometh. let's go to marty in florida, please. marty. >> caller: hi, jim.arty from staten island. >> hey, chief, what's up? >> caller: i'd like to know what do you think of ltd and also what do you think of the possibility of them spinning off victoria's secret to create share value? >> i will tell you this. they have always been very, very, very aggressive at creating value and if they felt the stock was undervalued they will take such an action. i think limited is inexpensive, it delivers the numbers, and i say two thumbs up. ♪ hallelujah >> well done, lt. got a good one there, chief. it's overrated. it will never, ever, ever, should ever happen that these two companies should be together. ltw can benefit from the break-up. the food side is less economically sensitive. and the crane side of the business is attractive too. oh, icemaker, please cometh. stay with cramer. >> announcer: coming up, damaged goods? when corporate bigwigs walk, sometimes it pays to follow them out the door. two companies with recent high-profile departures. are their stocks lurkin