mario draghi, we'll look at the reaction, not liking the pmi data. under 28 now, it's important to watch that one this morning. >> meanwhile, the back drop is the ecb delivers its policy decision today against the back drop of news of the eurozone. jules is in frankfurt. jules, how much discussion today on the economy? as we see that pmi data, how much is the fallout on cypress and what it means for the banking sector? >> ross, i think it's fair to assume he will be grilled on cyprus. given what we've seen this morning, what we've already seen, the softening of inflation, whether there's some acknowledgement of the language that he uses. he expected q1 to be weak. a lot of this news is what was also predicted. the question is, does he open the door for further rate cuts down the road. the consensus overwhelmingly is no change for interest rates. investors are concerned about the possibility of their flight. but as we just said, cyprus is overwhelmingly going to be the key. i just spoke to the key international economist of deutsche bank. he said drag

moving on from that, later this evening, he'll then, of course, leave talk toes mario draghi. tomorrow he's meeting with france and is spain. but the issue of portugal highlights the whole tension belying these meetings which is to say the periphery is weak, the austerity measures are not working and while government bond yields may be jumping, there's no sense that we're actually resolving these issues across europe. and that remains one of the real problems. and you have to look back at timothy geithner's visits here in the last couple of years where he kept saying to them, you node to make sure this doesn't become a broader crisis and everyone said, yeah, yeah, get your own house in order first. it's harder and ha h for europe to argue that at this point. kel, stay there. we'll come back to you. >> just a second. following that meeting today, u.s. treasury secretary will fly to frankfurt for a meeting tomorrow. in paris, he'll be meeting with his french counterpart pierre mosovici. for more on that, sam, good to see you today. look, you know, we have cyprus, now we've got p

we'll wait to hear from mario draghi in just about an hour's time. ahead of that decision, the focus will be on cyprus and just on europe's macro weakness and how much draghi can actually do about it. guys. >> kelly, thank you. we will be watching. big news coming up later in the program. >>> in corporate news back here in the united states, facebook is set to announce a new android product today. an event is planned at the social headquarters. speculation suggests that it's going to be first rolled out on an htc phone for us launch. >>> and best buy is offering a 30% discount on its current supply of apple ipod 3 tablets. the goal is to try and clear out the old veptory. a best buy spokesperson says the retailer is not discounting the price of ipad minis. you'll see that the stock has barely budged, up one cent to 21.65. best buy will open a samsung store within a store in most locations. that roll out is set for may. >> oh, boy. >> i couldn't believe this. >>> june, more problems for carnival. more problems for a crippled cruise ship. i thought it w

ecb head mario draghi might have something to do with it. he recently hinted that cyprus might need to sell off some of its gold to stock up on cash. cyprus has a relatively small gold reserve, but investors fear other countries facing difficulties, like italy, could follow suit. it has a whopping 2500 tons of gold. the economy in the u.s. could also have an impact as investors become older and move away from traditionally safe investments, -- become bolder and move away from traditionally safe investments. >> the european shares started the week on a negative note amid some profit taking from last week's rally. eta shows a further slowing of china's economic -- data shows a further slowing of china's economy weighed on the market. we have this summary from frankfurt. >> for many investors, gold has been a shield against inflation and a kind of safe haven in the euro debt crisis. since inflation did not go up as fast as people expected, some people started off profit taking at the end of last week and also this monday. the market, in general

what is also going to be interesting for the markets is what mario draghi, the ecb president, will have to say about cyprus and if he thinks that the rescue of the cypriot banks could serve as a template or model for future operations of that kind. >> the dax lost some ground, actually, mostly due to some weaker than expected jobs data out of the united states from the private sector. the euro stocks -- stoxx 50 sharply lower. in new york, the momentum continues. the dow down by 0.6%. the bureau, however, is trading higher -- the euro. >> a heating up german economy means the need for skilled workers remains strong. there is an ongoing shortage of qualified, especially in the software, engineering, and industrial fields. >> a year ago, new legislation went into effect that is supposed to make the recognition of foreign degrees easier and help fill the gap of qualified workers. berlin has called the legislation a success, but one year later, it has not exactly achieved what lawmakers wanted. >> he came to germany from india. as a nurse, he was a welcome addition to the workforce because

posting the biggest two day slump in more than four months as you appear in central bank president mario draghi said the economic recovery in the euro area remains subject to downside risk as expected the bank of england did not change interest rates and kept the program stagnated as it is as you can see we are looking at rather hefty declines the russian ruble was once again as you can see make so at most you gain against the u.s. dollar but was lower against the european and currency let's move on to the russian domestic markets and see what happened here they have been struggling all we can actually it must be said last because of international woes as well as it was going south as well biggest drop of crude actually to biggest a drop since june. two decades of economic stagnation and fifteen years difference and night i'm not talking about a third world country but the third biggest economy in the world japan so the bank of japan has pledged to double its bond purchases to solve these problems which has already driven the country's currency to the biggest slide since twenty eleven so has to

. >> what you're saying is this is not necessarily a jog for mario draghi.mt did the first step, the next step is down to local authorities. >> the next step may be also for the ecb to some extent. but not all of it. clearly, the local authorities have to do something in terms of stopping the deleveraging and trying to avoid the credit crunch. >> they were talking about further extraordinary measures that the ecb may have to embark on today. do you think that is going to be the case? is mario draghi going to have to get into the path of further stream measures? >> no. some additional measures, i think will be needed. i think it depends on the economy, how the economy conditions are. but clearly, affected other central banks are taking further steps. it is a challenge for the cb. you have to look at monetary conditions not only in terms of what is happening in europe, but in what is happening in the rest world. you cannot just be the more conservative central bank. without taking into account the rest of the world. otherwise, the impact will be on the exchang

he's joined by mario draghi and now corona in japan. so that liquidity was designed to reflate housing and reflate financial assets. and so an area like the stock market that we want to participate and not through mileless investing. companying like t. rowe price, cheap stock. leg mason, the stop is going through a rewrite with the ceo sullivan coming on board. maria, the stock is $32. >> right. >> a $1 billion nol. i want to participate that way. >> how do valuations look to you? you can't really say that the valuations today are like they were in the dot-com boom. because they were off the charts there. you're talking about 14, 15 times earnings -- >> maria, you're dealing with a broad brush. i want to go down and look at cable stocks, like chatter is up sharply since rut ledge took it over. time warner cable is up sharply since it was spunoff, and cablevision is down. cablevision, one they get past this first quarter, is going to start looking 12 months out, like a bargain at 14 and change. >> and there's real momentum in the group.

mario draghi from the ecb, he talked and said the risks are to the downside now.t there's still economic weakness, and you can see what that did for the markets. right now i'm sticking to the idea that global weakness is trumping reflationary trade in japan. >> any thoughts, bob, on your anticipation of the jobs number tomorrow? that should set the tone, obviously. what are folks saying about it in terms of the number and what we might expect? >> private sector job growth. that's going to be the key. it was well over 200,000 in the last one. if we get below 205, 210, that's where the estimates are. this is private sector, not total. if it goes below 200, we've got big problems. the risks are to the downside. this will be the fifth weak economic number if we get one tomorrow morning, the fifth one we've had this weekend. don't want to see that. 8:30 a.m. tomorrow morning, we'll see that number. >> 15 minutes before the closing bell sounds, we've got a market that is holding on to the gain right here, up about 43 points. >> he may be known as dr. doom, but nouriel r

i think the job isn't over for mario draghi. .. they have an impossible job. to turn a the money supply it right in terms of how much you had to come into the economy to oversee the banking system narrowly, that tries. the entire of the financial system thursday sustainable, durable model of how things are that creates crises recede over and over. postcodes at bank of japan we talked about a day to see whether the new governor can pull this off. >> guest: yeah, this is a country that had 02 negative 1% prices for the better part of 20, 25 years. that's no easy thing to reverse and that's deep-seated in the psyche of the japanese people. his demographic fact yours. a declining working age population. it's been an interesting academic debate. can a central bank always create inflation? is a given that there's higher inflation that can make it happen quite on argument is of course. if i can print dollars, by definition i can have a helicopter drop money and prices would be lower than they would be inflation. the counter argument is the central banks can't do that

shares falling sharply in the afternoon trade after those comments from mario draghi, curbing investoreping the benchmark interest rate unchanged. draghi telling a press conference the ecb cannot replace the lack of capital in europe's banking system and cannot compensate for action by governments. also the monetary policy will remain acome accommodating. a central bank saying the company will extend capital controls for one more week. they're calling the country's near term outlook very unfavorable. so we will get the european markets. >> the european markets are closing now. >> and we will bring in -- not bob pisani quite yet. he's in position for post night. that could change. you want to walk us through where we are? >> yeah, let's talk about what is going on. the important thing is a little bit of a disapointment today that considering all of the hoopla around the reflation trade over at the bank of japan, we're not seeing a lot of reflation out there. you may say, well, it's early, but we see gold down and other key commodities down. copper just spiked recently in the last hour.

mar mar mario draghi was very careful to say we can't tell the central bank what to do.about quantitative easing central bank, the large holders of gold, that there isn't some communication there. do you think it makes the central bank look bad when gold is 1800 or 1900? i think so. what does it mean now? back to you. >> rick, before we let you go, having major trading a long time ago, when does it get concerning? when does your eyes really get opened? >> well, first of all, anybody who takes the bottom is going to probably get carried out. even if they pick it correctly, to me, it's a dangerous day. remember, those highs made in early 1980, adjusted for inflation, about 2300 an ounce, we haven't even gotten there adjusted for inflation. to say those highs in 1980 marked the end of gold for a long time to the upside. >> it tends to move in long, long trends. that's true, rick. we'll come back to you later on. thanks. >>> falling moments ago below 1363. so we're asking you to fill in the blanks. gold is losing its luster, it's so bad right now gold is blank. tweet us at s

i totally shared with mario draghi on cyprus. this is an island with 700,000 people. you're talking about a million euro deposits and inhabitants. whether this was the wealthiest people on the planet, it's a shortcut. let's create a money laundering center for russia, rather than competing on tourism or jobs, let's take a shortcut. so i think at the end of the day, it's fair what has happened. consider the politicians who were appalling, what these guys did, the there is a report that one of the family took 21 million euros out of the bank three days before the agreement. secondly, one of the reason why they decided the first template to put haircut below 1100,000 euros, we have more than enough. let's prove there's more and get themselves off the hook. >> you can understand why they did what they did. it's just more interesting. >> from a bit of a graphic, it's appalling, shocking, and i think it's only fair they get elected. >> what choice did they have? >> they had no choice. when people say let's get out of the euro, i say, yes, tell me what you're going to be out

there are concerns global demand will weaken as ecb president mario draghi warned of downside risks toe's recovery at a news -- a little bit. president obama's returning 5% of his salary or $20,000 to the treasury in support of federal workers who are going to be furloughed due to automatic spending cuts. the decision comes after a similar move by a secretary, defense secretary chuck hagel. but was this the right approach? let's get lou dobbs take. >> well it's certainly a grandstand move, isn't it? and a whole 5% of his salary. now, how much, what multiples of his salary does he spend each month on vacations, fund-raisers? he is in san francisco on the taxpayer dime, raising money for the democratic party for 2014. i didn't hear about sacrifice there. and the multiples of his salary are what are being spent when he does this nonsense. i don't understand why he did it because he draws attention it a couple of things. one is, first of all he makes 400,000 a year. that is not going to please a lot of people when they look at pay for performance. even in politics. and it's also not going

mario draghi after winning is coming in and helping government bond yields by saying he'll do whatever it takes last year has kind of been out of the picture lately. is it becoming more urgent for the european central bank, just forgetting everything across the eurozone to ease for the sake of the weak.ing outlook here? >> i don't think there is very much the european central bank can do. cutting interest rates would not make a huge difference. the problem of fate has very little to do with ecb rates at 0.75 being too high and an extremely low rate. the problem is the transmission of monetary policy to householdes and companies. >> yeah. no spanish companies are borrowing at 0.75%. >> exactly. reducing that rate wouldn't really help them very much. what we need much more are a signal or signals of confidence that spain, that other countries would stay the course. if the confidence in the future of spain and italy rebounds, then banks will have better funding core as they'll be able to pass on what the ecb has already offered in low rates. so i don't think there is very much the ecb can

to frankfurt to meet with mario draghi. draghi, of course, was the guy who geithner talked to more than anyone, the de facto person for europe. tomorrow, it's france and germany with wolfgang shoiblood. people have said paul volcker among them is an alexander hamilton. there is no alexander hamilton in sight. he has a big task in front of him, kelly. you'll be watching all of these and watching these meetings today. what would be the thing that would surprise you the most or that might make the most of a change coming out of this meetings, do you think? >> we'll hear from jack lew for the first time in just about 45 minutes after he meets with the president of the european council. becky, at this point, we know we are going to hear the same kinds of plat attitudes. they're going to work on, for example, the transatlantic free trade agreement. what i think could be interesting behind the scenes is the extent to which the u.s. is pushing back on europe's financial transaction tax, that does a lot of things, threatening to pul

i think mario draghi has his hands tied because he doesn't have a banking union and if you look at central banks around the world he's been the least active. so you look at deflation in places like greece, maybe a little spill over into cyprus and on a side bar, cyprus got blamed about friday and monday. cyprus was the big loser in the gold sell-off. if they were going to lose any of their gold to pay part of that bailout it's 14% lower. >> that said, art, if you identify the deflationary forces, if you are correct, what does that mean for stock investors back here? >> i think it won't be immediate, simon. i think what you'll see is it began to trickle in, and i think what you may have seen both in the announcements of weaker than expected things in china and the fact that if europe begins to become another part of the problem that that will become an increasing drag. i don't think it's going to be the kind of thing where they wake up tomorrow and say, gee, he's right. there are some deflationary pressures. i think they're going to see it in a much larger sense. they're not here. they're n

european leaders in morning and he's heading off tonight with frankfurt where he will meet with mario draghingest meeting is with the german finance minister. 90 minutes in the mornings and then he was supposed to wrap up a trip to meet with pierre moskovici. >> they've been dealing with the scandal over the handle of what people are calling tax avoidance. we see the profit minister stepped down. france has been takinga i hard line on this very issue of tax avoidance. several government figures have been accused of hiding their own funds offshore, that is, in order to avoid taxes. so the question now becomes what happens with president francois. what's the future for pierre who has only been in office for less than a year and it's an embarrassment for france with regard to the european debt crisis now strong cancel this trip entirely and frankly leaving the matter in the hands of germany and the rest of the european union, guy snoops kelly evans in brussels, thank you very much. >>> closer to home, friday's employment report was a big disappointment for many in the market. steve liesman is h

mario draghi weighing in. if you sell gold it has to sell to commercial banks. has independence. but just a couple of things quickly. one of the finance committees yesterday had this. the escalating gap in funding confirms my doubts in the finance framework repaired by cyprus. it's going the way of greece, ever more funding gaps keep coming to light. hey, they have a lot of gold, but not enough. they have 13.9 million tons. this is something we have to pay attention to because the gold market is down $60. >> yep. >> i'm sorry. that's metric tons. metric tons. they have 13.9 metric tons. and david, we're going to have more of your interview, your exclusive interview. still to come, the cfo of jpmorgan. >> welcome to hour three of "squawk on the street." here's what's happening so far. >> we have zombie consumers who are just walking around barely able to make ends meet. >> now it's time for the big reveal, the newest squawk market master, if you haven't guessed already, our very own jim cramer. >> i didn't know it was open to cnbc employees. >> only jim. >> only