. >> mario draghi says growth must be at the center of the agenda as interest rates stay unchanged. ♪> pressure is mounting by the day on the government in ukraine over its treatment of tymoshenko. now the uses all 27 of its commissioners will boycott the euro 2012 football tournament that kicks off in ukraine in a few months. >> the german chancellor has called on kiev to allow proper medical treatment for the former prime minister who is sitting in jail. she has repeated her offer to have retreated here berlin. >> tymoshenko's daughter has been talking to dw. she said her mother had no objection to being treated in ukraine but that she was not being allowed to see her own doctors. tymoshenko has complained of beatings and is on hunger strike in protest of treatments that sparked demonstrations by supporters in kiev. they say hurt jailing on charges of abuse of power was politically motivated. pressure mounting inside and outside ukraine. let's go across to brussels to our correspondent. we have got all 27 eu commissioners and the president of the commission boycotting europe in 2012

mario draghi is out saying the central bank we can't fill this policy vacuum now that sounds a little like ben bernanke he talking to congress that we're looking at trends but also he's pushing for some countries to forego national sovereignty pushing for centralized bank supervision and regulation he says that's the big takeaway from banking disasters like bank yeah now let's bring mike shylock in to talk about this though because he's going to bring us a dose of reality amidst these calls from euro kratz technocrats whatever you want to call them now mike said look better known as misha's investment advisor for sick of pacific capital also writes the very popular blog is global economic analysis so mission thanks so much for being on the show today oh a pleasure to be on the show you know here it is may thirty first of. chicago everything is green it's raining here today you can probably see the trees on my back window there it looks very beautiful what what a nice report to get to to give us some context before we get to somewhere that's a lot more bleak then than dealing with rain

session ended on a mixed and flat picture because on the other hand all those statements from mario draghi we've had spain placing two and a half billion euros worth of bonds successfully on the currency market the euro is pretty much even though with the dollar declining slightly as you can see there but the ruble lost against both currencies not getting any support from low oil prices and the markets also saw in russia decline a second day of declines with the r.t.s. declining one quarter of a percent the obvious point six percent moving my say well basically those were after shares a look at them in just a second half of what was a bit better than the market despite its net profits decreasing around fifty percent in the first quarter gazprom was up even one percent one of the best performing stocks of the day after hours is down seven percent as a read only sand is getting its grip on the company it's so close to take you controlling stake now it's setting up a joint venture with the state corporation russian technologies for which it will increase its stake in after vast rain and he sa

year cheap cash is maybe you could more colloquially call it now i want to mention something that mario draghi said about what the point of this was and what the transmission of this has been to the real economy to households and to firms he said last week in his speech that this is indeed a crucial point that ensuring the e.c.b. as monetary policy continues to be transmitted effectively to the real economy was a key motivation of the governing council decision now after that news came out this week that lending has declined to furrow to consumers and banks and spent that money on buying government bonds so has the l.t.r. all met its goals what word schools really in your view. well the goals of the l.t.r. are one not the goals of stabilizing the european economy at least the european central bank can't really say so because it's not in its mandate to do so now the out arrow has achieved some of the bill is ation in the interbank funded markets unfortunately well now seen some pressure emerging there as well so it seems that they are heroes were not sufficient to really resolve the problem l.t

meanwhile, ecb president mario draghi is urging lawmakers to o come up with what he calls a credible bank fundamentalism. he stressed a resolution needs to be implemented at a european a level and voiced concerns about a shift in financing. we till to get headlines from draghi at he testifies. the question is what happens to to the rest of the greek banking sector and spanish. >> level of uncertainty is not the same as in november. >> i hope what he means is it's a heck of a lot greater. >> obviously most of is when they introduced the ltro program. he's saying if take you that at face value, we're not about to step in with any big action. >> and you couple that with james bullard saying he doesn't see the immediate for more quantitative easing, so trying to push poll city makers into some dramatic action are not getting the headlines that they weren't. >> talks after a day of discussions between madrid economics minister and german counter part on the pressures facing the spanish market. spokesman for the european commission has said spain must tell brussels how it plans on restruct

yes, mario draghi could certainly surprise us. we know that he's done that before.hether that would really swing more than half an hour's fun in the markets remains to be seen. the interesting angle might very well be the discussion that draghi had with angela merkel last week when they were indeed talking about not only honing in on fiscal compact and austerity, but maybe what this eurozone needed was something that might be called a growth compact. and that's something indeed mario draghi had put a finger on even at the last press conference. so maybe we hear a little bit more about that what could be done to spur growth. but the ecb can at best give us some flanking help here. >> silvia, just coming back to ian here, just taking you up on that point, while i agree with you wholeheartedly that we'll see very little from today's meeting, if there is will this willingness to see the exchange rate weaker, my view is what we would love to hear from the ecb is that a lower exchange rate is not inconsistent with our inflation targets. just that phrase i think would be v

ecb head mario draghi said there was a need to cut deficits. outside, there were demonstrations against tuition cuts and fee increases. >> in barcelona, life and traditions go on, like they have done for years. this is despite this crisis. in this working-class suburb, the unemployed are everywhere. 44-year-old francisco lost his job a year ago. he, like others you speak to here, simply cannot find a new job. there are not any, he says. today, a stone's throw away, the banking bosses met. at a meeting long-planned but held amid tight security. there is anger towards the banks for their role in spain's economic crisis. the idea of taking an ecb meeting and out of frankfurt to a conference center and some are like barcelona is to provide accountability. -- out of frankfurt to a conference center in somewhere like barcelona is to provide accountability. security has kept people at arm's length. after their meeting, the european central banks loss erased the reform taken by countries like spain. bossropean central bank's praised the reform taken by

steve it's up now just point four percent as is london of course everyone is focusing right now on mario draghi speech the e.c.b. chairman is in spain talking about the economy so far is that you. spec's the economy to recover gradually and a bit of positive news from spain also the government successfully managed the sale for two and a half billion euros and they used to be rate has remained unchanged and therefore we are seeing the euro right now going the positive against the dollar used to lose twice as much as it's gaining right now so that's a big recovery whereas the ruble continues its decline against both currencies on the russian market was still seeing a cautious trade today with the r.t.s. my six pointing in different directions look what's moving to my six now despite the fact that oil prices defacto a bit lower than they were in the previous session gazprom is up more than one percent so it's one of the biggest drivers of the market is up slightly of the report saying disappointing first quarter results of its net profit almost and after value is the big loser today it's down more

. >> mario draghi arguments the national powers of regulating banks be transferred to the central europeanhority. he also criticizes some of the eu governments for underestimating the scale of the banking crises in their countries. he says banking changes should only be one part of revamping the entire structure of the monetary union. let's hope these types of initiatives could save spain. it is closer to the brink of bankruptcy, and the job situation has gone from bad to worse. >> the government in madrid is trying hard to cut its big budget deficit. one measure is cutting subsidies to the coal sector, but unions say this can mean up to 30,000 layoffs. >> that has led to massive demonstrations. >> the march through the center of madrid was somewhat less than peaceful. police arrested at least two people, and there were several injuries. 100,000 took part in the protest against planned job cuts in the coal mining industry. they are afraid the colorado mines will be shut down entirely. 40,000 jobs have been cut in the past decade. -- they are afraid the mines will be shut down entirely. >>

savings would be essentially stripped of some value the president of the european central bank mario draghi has said that the e.c.b. will not keep greece in the euro zone it any cost in fact that the it's not a matter for the e.c.b. to move the goalposts as it were to allow greece to remain within the single currency here in germany we've heard from chancellor angela merkel who is said alongside french counterpart newly sworn in french president francois hollande has said that they want to see greece remain within the. and said that they're willing to try and help greece alone through its financial troubles however they said that they will also respect the the results of a ballot should greece decide to elect people who want to pull him out of the euro zone now finance ministers in the we'll be meeting on the thirty first of may to talk more about the ongoing crisis throughout europe throughout the eurozone and the future of the single currency what happens if greece pulls out well it's it's unprecedented there would have to be a huge change in treaties across europe so all i hear in german

why is that well for a lot of reasons mainly on worries about what's going on in europe because mario draghi the head of the european central bank wasn't talking about the situation in the euro zone and he said that basically the situation is becoming more uncertain and more downside risks so. it's pretty dramatic drop of around two dollars per barrel for light sweet bread in the u.s. markets we're also seeing a batch of mixed days are coming out although mortgages there are all time low rates i mean for mortgages thirty year mortgages at the same time jobless claims have come in with a decline that's also good but the service sector has shown a slowdown and therefore we're still seeing a negative picture of them both. over in europe are trading is drawing to and with a full see up slightly down and this is. news that spain managed to place two and a half billion euros worth of. born yesterday and over here first of all currencies a year of the euro is pretty stable against the dollar but the ruble has been losing value against both currencies today on the decline in oil price and therefore

long term refiling sensing operations of the europeans i'm sure won't have seen mario draghi one point two trillion euros so far this year there's no reason why that sort of money couldn't be directed buying solvent directly instead of going into the deposits of private banks so of course it can be done ok do you think that's going to happen do you think i mean what i guess the whole program here is is the germans going to be shaken up enough i've seen the house being burned down but it just can't live in one big powerful room i mean there aren't you don't have the protection i mean if the eurozone goes meltdown germany goes with it also obviously. it's certainly not in the interest to sit in a cozy room and see the rest of the european union falling germany is one of the most committed countries in the european union to stabilize this there is no such thing as short of nationalism nor is there an intention to lecture anyone the only thing that we have to keep in mind is that there are serious structural problems that got us into trouble and that has a lot to do with public finances as

of course a declining market while is also down dramatically more than two dollars a barrel as mario draghi the head of the e.c.b. said that there could be more downside risks in europe and the situation looks more uncertain. over in europe therefore we saw a flat flat mixed picture on the back of also positive news coming from spain the government successfully sold bonds worth more than two and a half billion dollars on the currency markets the euro and the dollar have been pretty stable against each other where the ruble weakened against both currencies as it got no support from those oil prices and the russian market ended the day on a negative note second day of losses take a look at what's moving the might say it's now despite lower oil prices gas problem on the my six managed to gain more than one percent floor flat up to reporting disappointing results after as was down seven percent now that's the big news today as read no need. getting closer to gaining control of the they want to take a more than fifty percent stake in the company will be investing seven hundred fifty million doll

the chestnut colt with mario draghi areas on board -- mario gutierrez on board. "i'll have another". here in two weeks. >> the kentucky derby, 1/3 of the big races. baltimore is the home to the preakness. we are at pimlico were racing fans have been celebrating all evening. >> the crowd is starting to empty out of the stands at pimlico. we have some people with happy faces, others with longer faces. all eyes are on pimlico now. it may be hundreds of miles from churchill downs. >> come on, javier. >> but local racing and desist were just as excited. they got a glimpse at one of the races -- resources that may raise at preakness. >> he had the 21st slot in the derby. he's racing today. he hopes to have enough to raise enough preakness. excitement is already building. even amongst the youngest of spectators. >> let's see who wins the derby. >> i love seeing the horses run. if it is exciting trying to figure out which one will win. >> these ladies know which hats they will were. >> i will probably go with a purple-lavender one. >> mine is pink. >> it's has gold in it

would need to approve it so here is an attempt to exercise national sovereignty then you have mario draghi who's the head of the central bank saying with all of these banking disasters in europe what we really need is to give up a little national sovereignty over banking and have a central authority that deals with banking regulation so lots of issues going on the similar thing though that we always see even though there is new data so we're going to talk about that. the time. cavallo on the capital account thanks for that update lauren that's coming up next on the capital account of laura lister that's going to do it now for the news for more of the stories we covered you can check out our you tube channel it's youtube dot com slash artsy america we will be right back here at five. wealthy british style. is not on the title of. markets why not. come to find out what's really happening to the global economy with mike's cause or for a no holds barred look at the global financial headlines tune into kinds a report. you know sometimes you see a story and it seems so you think you understand i

and the head of the european central bank mario draghi warned the euro currency system is unsustainable and european leaders must clarify the future. >> how is the euro going to be, to look like in a certain number of years from now. what is the union vision that you have a certain number of years from now? and i think the sooner this is specified the better it is. >> holman: the sun may set on the euro soon, in greece. the deeply indebted nation holds new elections on june 17, and could abandon a financial bailout and leave the euro altogether. the news from europe did little to help the mood on wall street. and, a new report suggested u.s. economic growth in the first quarter u.s. was slower than first estimated. in response, the dow jones industrial average lost 26 points to close at 12,393. the nasdaq fell ten points to close at 2,827. in syria, the government today blamed rebel gunmen for the massacre in houla last weekend. it said as many as 800 rebel fighters attacked security checkpoints, then slaughtered more than 100 civilians. the u.s. called that claim a blatant lie. and, in

mario draghi, the head of the ecb came in, provided liquidity, provided cheap loans to banks, so there wasn't going to be a lehman-like moment where there was going to be a run on the banks. people breathed a sigh of relief. all of a sudden, people like you are worrying a lot again. why? >> i never believed the argument. essentially, he provided a lot of liquidity, and that prevented what was surely going to be an implosion of large parts of the euro zone banking system, and that stopped a disaster. that's a very good thing, but the underlying situation remains the same. we have governments with very serious debt problems and huge deficits which they have to finance. or in the case of italy, these huge rollover problems. who is going to finance them? basically their own banks. their banks are under enormous stress even now. we have very weak economies. we have rising unemployment. the spanish data horrendous. close to 50%, youth unemployment. that makes politics terrible everywhere. the politics gets into the markets. the debt market gets worse because people look at the political stre

this is ecb president mario draghi reading from his notes. he's in barcelona.ncing this rate decision from barcelona. they kept interest rates unchanged. this is the news conference. the euro has moved off its lows because draghi said he thinks the consumer index in europe will state above 2% in 2012. coming up, michael lewis joins us live. we've all agreed he's one of our favorite authors. "liars poker" is just such a classic. we're going to head down to the new york stock exchange next. >>> we're proud to unveil the "squawk box" book club this week, an exclusive group of books that drive the conversation in the business world. we've been kicking off the club this week with some of the big classics that belong in any business library. coming up tomorrow we have "accidental billionaires" on the list. now it's time to present another blue chip book award written by my favorite, michael lewis. he's a contributor to "vanity fair." he's woken up very early to join us from berkeley, california this morning. welcome, michael. >> an honor to be here i think. >> you kn

mario draghi says market confidence is the key to persuading banks to boost lending activities. a spokesman for the european commission says spain must tell europe it plans for bankia. he adds a domestic solution would be better than a european rescue and by the way, that german guy yesterday started talking about holland wants to do this and holland wants to do that and i thought he was talking about the country. he's talking about hollande. >> that's why you have to differentiate. >> i was thinking of taking my iphone and doing a little man on the street interview and just asking. >> do they say hollande? >> hollande. >> and luxury -- london luxury jeweler graff has pulled its plan its ipo, fourth major offering to be called off in asia this week. and are investors being too fearful when comes to europe's continuing debt crisis? joining us is ian shepardson chief u.s. economist. great to have you. i guess my first question is you're somewhat sanguine about the eventual outcome with greece. either way you're sanguine or do you believe greece will stay in or about they do leave,

mario draghi has shifted his stance to move away from just talking about the ecb's mandate to sayingery much would prefer to see greece remaining a eurozone member. so breaking his traditional silence potentially that has on do with what we heard out of the central banks of ireland and belgium. they were saying it wouldn't be a big deal if greece were to leave the eurozone, but draghi very much holding on to we want greece to remain. >> louisa, thanks so much. >>> angela merkel is due to hold a video conference call today hoping it will go some way to helping the leaders form a common line ahead of the weekend's g-8 meeting at camp david. apparently they'll discuss positions ahead of the g-8 meeting. this is due afternoon 1500, 4:00 london time. which eastern would make it -- >> noon? >> 11:00. >> if you want to offer your suggestions on what this call might look like, what they might say, tweet us, e-mail us. spanish economy meanwhile is confirmed in recession in the first three months of the year. stefane is in paris and joins us -- i think he's in madrid. >> yeah, definitely in ma

we're now moving into a face where mario draghi is not cutting rates. he's cut rates already down. he's got further to go. if the bangs keep contracting, lending in europe, he'll have to consider more diluted policies. so i think that's what you're seeing here. the euro being weak. >> okay, james. thank you. >>> let's focus on the bank's profit in knew zealand. improving over the same period last year. missing expectations with domestic growth and australia subdued. the bank was helped by a larger gain. with that in mind anz's ceo says they're hoping to have it by the end of the year, steve. >> right. the banks listed in uk, london, of course, and hong kong, says the euro income grew at a low percentage pace. that's slower than the 10% target. i'm delighted to welcome richard meddings, the cfo to standard chartered. thank you for joining us today. you mentioned your double growth targets are still intact. why is it not believed that it's slow activity going on. >> i think the q1 has been a very strong performance. actually you'll have to forgive me. we have a loud speaker announcem

we heard mario draghi saying it's not the right time.ards saying it's not the right time. it's also a little bit -- always saying angela merkel is getting more isolated. i'm not so sure. it's the old story of euro bonds yes somewhere down the road, with but we can't just addition o dish out money without having any control over how the various countries are spending their money it that make up the euro bond zone as it were. so that will remain the sticking point. i think we might have a back door into euro type bonds. we might see more of that that we have essentially eu bond or eurozone bonds. but only sort of pinned to specific projects. so we might get that through the back door like we got qe through the back door with the ecb's lt are ro. but i think the market is on the wrong track here. >> so germany would support under what circumstances? >> the project bonds have already been approved. it's just at the moment, they make up a very small amount for financing. we're talking about a billion, a few hundred million here and a few hund

we wanted to know what he thought about mario draghi and his position that the ecb has done enough foren to what buffett had to say. >> he put in a trillion euros and a trillion euros, call that a trillion, 300 billion or something. so he's entitled to rest. he's worked for six days. he can rest on the seventh. but it solved the funding problems for the banks. and that problem was serious when he did the first time. they were really worried about funding. it doesn't solve the problems of whether the banks have enough equity, doesn't solve all kind of other problems. it did solve the funding problems. and that was a problem that needed to be solved. but there's still a lot more that needs to be solved. >> it doesn't solve the question as to whether or not the euro will still be here in five years. if you had to put odds on that, what would you say? >> that's one i don't know. it's such an interesting question because we know the present situation isn't sustainable and we know that it's a terrible problem to unwind it and we know that we'll face terrible problems if we don't do something

into the fray, it's important as we look to the long term and bringing time horizon closer, that mario draghif bank deposits. he said depositors' money will be protected if they build this fund. he told politicians to clarify the europe that they want. take a listen. >> debt configuration that we had with us by and large for ten years, which was basically considered sustainable -- i should say, i should add, in a perhaps myopic way, is being shown now to be unsustainable unless further steps are taken. >> the ecb pushing along with probably half of europe to get this joint guarantee. the question is will the germans bend, the finns bend, the dutch bend. we have a referendum under way on the pabt in ireland. the opinion polls indicate that that will go through. all the opinion polls have suggested that from the onset in february. however, there is a 20% undecided pool who could swing it and cause trouble. the polls close at 5:00 a.m. new york time. >> the most amazing stat for me today was u.k. chamber of commerce projecting teen unemployment next year of 41% in the u.k. >> wow. >> so it's not

interestingly, the head of the ecb, mario draghi today saying you must once and for all define its vision potentially to europe further down the line. but it's not a bad day in europe. as we shut you out across the 27 nations of the eu, let's have a look at how the map looks. >> the european markets are closing now. >> so positive as you can see for most of europe today. saw a huge move, but on a lack of any good news from europe, we certainly -- or lack of good news from the summit, we've been able to pull the european forces higher. on a relatively quiet day, i just wanted to take the opportunity to show how how we have this interaction between the u.s. markets and what happens in europe. yesterday you got this very rapid climb back in the dow. over 150 points in, 90 minutes. call it 191 to the bottom. when the european traders come in the morning and they see the united states has cut its losses to that extent, they actually mimic as they do in asia almost immediately. so you can see, if we have a look on the session charts here in europe today, how they immediately bolted higher at th

mario draghi, the president saying, it's not enough to change the baseline scenario which foresees aovery in the course of the year. let's hope. >> and on top of that, the u.s. data. ultimately, that is what's moved the european markets today. let's have a look at the three major indices, and you'll see exactly what i mean. we were going great guns at you in europe. the earnings were a key focus, actually heading higher during the course of the session. then, of course, whoa, there we go. and then we got the data that came out of the united states, and that's really what's moved us. the ism services sector, the idea that the united states might not generate the growth that everybody else was banking on in equity markets around the world, has actually hit us, or hit them very badly in europe today. those stocks that were doing well like bmw that earlier was up 3%, 4% in the wake of having a gang buster quarter in china. it's cut its gains. this food operator, half of its money coming from the united states. food lion is the chain it's having difficulty with there. that's earnings. tha