that is, of course, his hope, mario draghi's hope.was hitting out again against those critics that are saying that he's only delivering this policy to southern european, and he very well had a very good audience for that, because here, above all, german bankers and economists were attending, and it was quite interesting to see they had these electronic polls. and one question was, for example, if germany is responsible or is harming southern european states by its policy, by its surplus policy, and 60% said, no, no, no, that's not the case, ross. >> yes, which, 40% abstained and maybe disagreed, which would be the interesting point, i suppose. did draghi say anything more about deposit rates or monetary policy? >> reporter: no, he actually didn't comment on any potential move into negative territory when it comes to deposits, but i had a little bit of a background check with different people, and they seem to be very much -- of course, they have discussed it. mr. draghi said that already during last press conference, that they were di

and we'll be hearing from the ecb chief mario draghi. he's addressing a conference in berlin on industry and growth. >>> but first, we are just over an hour and five minutes into the trading day. european equities down again today. take a look at this shot of the dow jones stoxx 600. the ftse yesterday was down some 17 points and we're in the red again this morning. currently another 24 points, 0.3% lower. the xetra dax moving further away from the record high that we've been at, down 0.6%. this morning, france with the pmi numbers is off 1%. the ftse mib is down 0.3%, as well. a sharp move higher in treasury yields post the fed yesterday. 2.78% is where we stand. now, as far as currency markets are concerned, the dollar/yen has been the big mover, a four-month high of $100.63. euro/dollar, weaker this morning. back under the 1.35 we were trading at yet. we're about a euro below that at 1.3419. pound/dollar, 1.6091. but the aussie has been here once again by the hsbc low. we'll get into that. 0.9274 aussie against the greenback. sixuan h

leaving many wondering if president mario draghi should opt for a cut. stocks rise with commerce bank leading the way. it's begin to go pay off. germany's second biggest lender cutting forecasts with a 15% rise in net profit. >>> the german enginee gia promising a new strategy in may. they vow to return the company to growth. >> it is about innovation. this is about reliability. quality. and that's what we are going to do. by explorering our market opportunities and then return to growth. >> plenty for investors to deal with today, the bank of england meeting, the ecb, twitter's ipo. this is where we stand with european equities. cautious and softer, the ftse down 0.3%. the xetra dax down 0.11%. cac 40 down 0.3%. the ftse mib is down 1%. only 34% of companies that have beat have come in with expectations above revenue. ten-year gilt yields, 2.71%, as well. on the currency markets, dollar/yen just off a seven-week high. euro/dollar, currently trading at 1.3517. big focus today on twitter. it's priced its ipo at $26 a share, above the expected range or the

today we had mario draghi speak early in the north american session.rates because of inflation. we look at biggest surprise on year-to-date basis it is euro resilience. next year we expect the euro to move weaker and likely to move weaker with a combination of fed policy and ecb policy those two combined should drag the currency far lower than it sits today. liz: 1.34, i can not believe it. surprises me considering there so many questions about the health or gigantic deficits being run contrary to what they're supposed to be doing. the many rules the people aren't following with eurozone with the 17 nations. let's get to the investor out there that says i want to play currencies. what is the best way to do it right now? >> if you're a investor with a lot of risk tolerance, currencies look shorting euro,, shorting euro really almost against anything. if you're hesitant about the euro u.s. dollar cross you can short almost any other currencies. look at yen, look at sterling. all of those make great plays. currency like sterling, central bank policy movin

that's when the ecb president mario draghi is holding a news conference. we'll get previews from geoff ket mo c cutmore in europe in about 20 minutes. >>> jobless claims are seen at falling slightly to 335,000. as for the markets, joe mentioned the dow closing at a historic high. the s&p 500 rose for the 16th time in the last 21 sessions, finishing within two points of a record. the nasdaq was not along ford ride yesterday. it closed a little lower to snap a three-day winning streak. you did see some of the high flyers that took it on the chin yesterday. you watch the futures this morning and you'll see dow futures indicated open down by 20 points. s&p off over 3 points. andrew, back over on to you. >> we have a lot of corporate news to get to. toll brothers is buying a home building business of privately owned chipelle industries for backside 25 billion in cash. this gives toll more access to affluent real estate markets in california. chipmaker rda microelectronics has received a second buyout offer coming from china's state-owned shinwei uni group. in s

there's mario draghi, the ben bernanke of europe, did a little press conference afterwards.ihe's italian. let's show you what concerned them. it tells the whole story. remember we talk about the fed trying to fight inflation, but they also fight deflation. you're looking at disinflation. that's when inflation keeps rising but not by very much. by less and less and less and less. and then you worry that you start to dea declisee a decline prices. japan for 20 years. >> they've been trying to get inflation system for a couple of decades. stick around, michelle, by the way. it is the move made european stocks a more attractive place to invest? let's bring in fidelity's tim. paul, 25% of the stocks in france are up more than 40% this year. so do you still care for french or european stocks? in other words, does this make you even more bullish on europe? >> yes, mandy. yes, mandy, it does. that move earlier this year was mostly on multiple expansion. mostly on a return of confidence. but now we're finally starting to see some real economic data show that europe's gaining some tra

ecb president mario draghi said the recent cut was not based on deflation risks.ks the bank needs to create a safety. we're joined with more by the ceo from aliant. is there a difference? we have core inflation .8% which is a record low for the eurozone y. won't . why won't it go lower? >> this isn't something that calls for monetary action. we have for a long time claimed that we need to reduce the prices and we need to reduce wages and especially in the southern periphery of europe. that we need some internal devaluation as it was called to make the economies of the south competitive again and just this is right now happening because of wage reductions and productivity increases in some economies. the prices are trending downwards. i think this is the type of good deflation which we should not be trying to kill. >> so the ecb shouldn't worry about inflation targeting then? >> no, i don't think so. this special phase of adjustment out of a very big disequilibrium, imbalance of the economies, i think we will need very low price increases for some time. by the way,

and this is what mario draghi talked about yesterday.inishing underlying price pressures, specifically to last month's harm onnized inflation data. but there's very violent market reaction, led to reports coming from that press conference to question the effectiveness of draghi's forward guidance and, therefore, ultimately, his credibility. listen to his response. >> we are pretty sure the forward guidance has been effective in reducing volt tilt of the money market rates. it's been effective in reducing the sensitivity of money market rates to news that would not warrant any change in fundamentals. >> has forward guidance been effective? you could argue it's been a big too fake. >> i think forward guidance is a work in progress in its attempt to hold back what the market wants to price in because we know the market will price in the worst data when it comes. the ecb forward guidance is probably the weakest of all the central banks we've seen and the only reason you would say european yields have managed to outperform a number of others,

that you left your stint at the ecb because you were unhappy with the course that it appeared mario draghithat is eventual bond-buying purchases to prop up the situation. what must you think of the $85 billion a month that the federal reserve does in bond-buying purchases expanding the fed's balance sheet by trillions? are you worried that we are on a really dangerous path? >> we have seen or one has seen -- those who have made the analysis that since the quantitative easing one to two and three the effectiveness of these operations have declined significantly. so while there was some effectiveness in qe1 and qe2 -- which is not the case with qe3 anymore, and i will make the exit from these operations extremely difficult. we have just seen in may this year when chairman bernanke announced the possible tapering it created immediately tensions in the market and new volatility. so i think this is really a signal that it is extremely difficult to exit from this kind of -- liz: will u.s. tapering hurt the eurozone when it happens? >> in this respect i think the international monetary fund and o

adam: european central bank president mario draghi surprised global markets with an unexpected cut in the bank's lending rate. ecb cut the main finance rate by 25% to just a quarter of a percent. liz: jcpenney, the embattled retailer announced its first monthly same-store sales increase in nearly two years. dip discounts. there is sort after backstory here. reduction of items popular with customers helped push sales up, same with the stock. adam: chairs of hamburger chain wendy's took a beating after it reported lower than expected quarterly revenue. the losses narrowed. liz: tesla sending a team of -@investigators into tennessee looking at a fire involveing a model s sedan. the third fire in six weeks. tesla sass it was a result of a accident. at love car companies have those experiences. it was not, tesla says a respond instantaneous event. -- spontaneous event. we're jumping here "after the bell." guesting you all the information you need. liz: we begin with break #r breaking news. group upon out with numbers. let's get to jo ling. >> revenue hitting 595.1 million, a miss of expect

mario draghi cut interest rates by a quarter point. they've been so unwilling to do this it seems for so long. he did it and the reason is because they have started to see signs of what we call disinflation, which means they still have inflation, but only -- >> a tiny bit. >> it's not enough. and they're worried about deflati deflation. that's when prices fall. >> what did they think was going to happen? the writing has been on the wall for this for a very long time. it strikes me that there really -- look at that. >> that's showing inflation in the eurozone right now. >> which direction is it going to go next month? it's like draghi is making monetary policy with his head in the ruins, really. the best way to put it, maybe. they're not looking forward. they're waiting for the number to hit them and then saying let's do pause. this has been the case throughout the financial crisis. >> the counter to that is europe's got a lot of problems that can't be fixed with monetary policy. they have labor laws that are so restrictive. they have t

it didn't sound a lot different than mario draghi's comments earlier this month. was a concern of cyclical upswing and at the same time we see moderate and even fragile growth. we are seen still continued deterioration and credit growth to the private sector which is a major concern to the ecb. the rates cuts were sduns discuss discuss discussed with that, ross, back to you. >> annette, thanks for that. i'm sorry, i'm a little bit lost at the moment bauts because i've trying to work out -- we have power for you. right? >> so we now have a red light. hopefully we'll be able to see this come to life. the cnbc screen is -- >> if anybody has a remote to change the right channel -- >> it needs to be on hdmi and you should be on the screen -- >> 20 seconds to find that. >> let's see. >> ross. >> okay. well, while this is a computer that anyone can make and it's quite simple, this is a tv that perhaps not everyone can figure out. oh, here we go. >> we'll keep our eyes on that. alex -- it works! >> viola. >> keep your images on that. the second hour of "worldwide exchange

their cash and instead went into borrower is stimulating the european economy but ecb president mario draghi said, quote, there is no news since the ecb's last meeting. lori: the united states auto industry will see half the growth it sought this year by 2014 so this statement came from toyota motor corp. head of north american operations yesterday who believes new vehicles and low interest rates this year satisfied all the pent-up demand in the auto industry. sales are expected to reach fifteen million units by the end of the year, the number will be closer to sixteen million by the end of 2014. adam: tvs that snoop on their owners even if you try to stop and after new privacy allegations. lori: forget stopping to ask for directions, the boeing cargo question in a surprise landing overnight at the wrong airport. >> the economic scene stepping into a debt-laden puerto rico where the government were here to help, watch out. pr t is on the brink of a credit downgrade. @?? she loves a lot of the same things you do. it's what you love about her. but your erectile dysfunction - that could be a q

we also heard from mario draghi today as well, two days in a row.rt of saying they talked about deposit rate cuts yesterday, but with the ecb meeting, there was nothing more on that today. he was much more focused on putting together a single resolution for winding up european banks, and this big disagreement between germany, who don't really want any mutualization of debt and banks in france and italy who say we need to have a fund to do it. draghi today very much trying to toe a middle line and get some consensus around that, but that will be a big focus for european politicians before the end of the year. yields as a result today on bunds just a little bit higher as well post that data. but otherwise, fairly flat market right now. back to you. >> ross, thank you for that. >>> we also have corporate news to get to this morning. the "wall street journal" reportion that charter communications is near a deal to get a loan to make a bid now for time warner cable. sources say that if charter turns to outside equity from sovereign wealth funds or other