maybe mario draghi will talk about some of those. he seems to me the consensus is saying for the moment, they will be sitting on their hands. >> we will continue to follow this story. dual bring you full coverage of the european central bank rate decision and the press conference that will be at 12:45 p.m. by theision is followed press conference. stay with the european central bank. mario draghi is getting advice from christine lagarde. we have called on the central bank to act and easy monetary policy. there are risk that our cutting the sluggish recovery. gearsneeds to change toward sustainable growth. let's move on. amazon is joining the battle for the living room with the launch of fire tv. it is a set top box that goes head-to-head with apple and rogue who -- roku. here with more is caroline hyde. take us through the basics. what is -- what does fight to be have to offer? >> it has that content. amazon has invested big to get the content. a lot.ld get they have exclusive content. if you get it on the tablet that they make, but

she is assuring mario draghi to act. david tweed has the story. robust debate is going on and most economists do not expect action today. >> imagine if inflation was over three percent. you would the central bank to discharge its mandate to bring prices down. situation where the inflation rate is on the wrong side of one percent and the central bank continues to postpone taking any action. that is why people are so upset that the european bank is not discharging its mandate. it is not a lot of difference. regardless of what victor said about the latest figure. reckons it will correct after easter. you have to take the whole thing and to what mario draghi the rest of the government council thinks about. that is what i am going to be listening for when he speak to the news conference later today. right now, they argue that, despite the fact they have low inflation, you have inflationary expectations among the public that are fairly well anchored and that is the key thing. >> mario draghi seems to be building consensus. should we play into that? iffi

or you could do a fed style qe. >> what about standing with mario draghi? >> not publicly at this point. some extraordinary action might be justified is economic conditions continue to worsen. he walks that back a little bit. their biggest concern is that the euro has continued to strengthen. that is bad for the european economy. we might see an effort to talk .hem down that columns some of the fears and raises inflation a little bit. the question is will that be enough. >> thank you. in washington, if you are a big-money political donor, get ready for your phone to start ringing more. the total money you could donate to political candidates and parties, phil mattingly is with us now to walk us through not justhat this means for this election season but the wants to come. >> the practical implement -- implications are, if you want to donate to every house or senate race coming up, you have the ability to do that and max out. , theu want to donate masses 52 hundred dollars. that is $2.2 million you could put into house races across the country. races, if you

my question, has the market become desensitized to mario draghi's words? >> it did not move much lower last week. >> a big move last week. can mario do more? >> maybe they have been siphoned out by all of the qe talks. >> we know that they are unanimous on using nonconventional methods. >> we do not know what measures these would be. >> are they all together on when we should use them? economists say probably for the next couple of months. the new french finance minister, he was in washington. he sounded fairly upbeat. >> he is optimistic. the budget deficit needs to come down to three percent. the forecast this year is 9.9%. that is going to allow them to that deficit. >> reaching the three percent deficit target is our objective. not because it is expected among nations in europe. because it is in france's best interest to achieve that target. only when we achieve this target can we reduce our debt. we need to do this in france and in europe. it is our goal to achieve a level better than the three percent target in 2016, 2017. record of failing to meet th

it is decision day for mario draghi. preview of what the market impact could be, i am now joined marketcohead of global research at goldman sachs. welcome to the program. always great to have your thoughts. give me a sense of what you are expecting for the ecb. >> first of all, why should they ease today? i think the market is pretty mixed on this opportunity. of --st unsettling part the most unsettling development has been the fact that the expectations for future inflation have been falling. if you look at the five-year forward rate, that is down to 2% which is their target. it has been falling about 40 basis points. they published forecasts recently showing that inflation is going to be below their target for the next couple of years. in people's minds, this is that we are set for a low period of inflation. that the ecb is tolerating that is becoming more ingrained. this poses a threat. >> this is what the imf was talking about a couple days ago. the risk. ion beingabout lowflat just as risky as disinflation. and we h

listen to what mario draghi is saying.ew is that the best scenario, low inflation, a gradual move back towards target, qe is not imminent. in his view, that doesn't look like it is imminent. >> he has different conversations depending on who he is speaking to. he is saying one thing to german lawmakers and hinting at another thing in an interview or press conference. >> qe is not imminent for now. i think he was very clear last week. he gave quite a comprehensive speech on what scenarios would need to be. what he needs to see for qe to happen is a worsening in the inflation outlook. that is going to mean a series of numbers. is pressure going to build ethanol per is weak today? it probably would. he is going to have to do a number of things but are they going to act based on one number today? highly unlikely. lower.ds edging let's talk about the stress test. we are running out of time. , seems to imply something, doesn't it? >> they need to be stressed. >> we got some of the parameters yesterday. a 19% fall in stocks, 13%

mario draghi used the opportunity to take his yard -- largest stance yet. ourt would require, to make -- it would require further monetary policy accommodation. it requires further monetary stimulus. >> let's talk more about this. jonathan ferro joins us. a bit of a slow burn, but we have seen a selloff in the euro. >> i asked if the market had become desensitized to mario draghi. in moved lower in the last hour or so. of move theyind wanted to see? did he want to drive the euro lower? we have seen that. we heard the exchange rate being referenced before. it is a drag on inflation. -- hed the a strange he said the exchange rate is strong. it was pretty aggressive language on saturday. still higher than we were at the beginning of the month. it's not get overly excited here. how much further will we have to go before the ecb acts? it is talk. nice and easy to do talk. a lot harder to convince the council about further actions. >> if we look at the exchange rate in isolation, we need 150. ecb --lar 52 trigger $1.50 to trigger ecb action. they want to see it m

mario draghi shows inflation stands at 0.5%. he and the eurozone will not take any action according to all surveys out there in the market. what are they expecting? they are expecting at the council meeting taking place behind me in that building that they're discussing the inflation reading in march. they have to have an assessment whether this is only a one off or whether this is a trend which is going to continue. they are about to discuss the credit dynamics in the eurozone, which is, of course, major concerns here when it comes to the economic recovery. in roughly two hours' time at 8:30 eastern, at the press conference will start and mario draghi is likely to reiterate the statement about the solid footing of the economic recovery. he still sees slack in the economy and that is the reason why interest rates here in the eurozone will most likely stay a lot longer at lower levels than in the united states. back over to you. >> annette, thank you very much. when we return, squawk market master jim chanos is going to be other

mario draghi. >> g.e. in talks to buy france's alstomach for $13 billion. >> matt campbell and caroline hyde are here. matt, let's start off with you. why did this work for him? >> there is a macro maker here. g.e. is of course one of the largest american industrial companies. it has enormous amounts of cash held outside the u.s. when an american company holds cash outside the united states, it is very costly ever to actually bring that home. rather than effectively sitting in the bank somewhere, making foreign acquisitions is often a sensible thing to do. the micro and g.e. specific jeffrey is that immelt's tenure ee with power turbines, very unsexy but steady business. buying alstom, which is a very significant industrial player would really be the biggest move imaginable. >> we'll get back to french protectionism as well. i love those angles. give us a sense. a lot of investors say this makes sense strategicically because of what matt was saying and alstom needs cash. >> exactly. it is basically a small

and it is an indicator of mario draghi forcing her to act. >> the interest rate. david, you are focused on any sign of recovery in the greece economy. anna, i will give a real anecdotal side of what is happening in the greece. behind me, we have the square. this has been the scene of protest and even molotov cocktails. right now, there are people out there replacing all of the marble in that square. they stop to doing that for a long time. they are cleaning up the square. the statues are being cleaned as well. that seems to me to be a sign that someone thinks there is going to be -- and assigns of the nature of the economic recovery we are seeing in agrees. and there are others i will bring to you later. looks interesting developments. caroline is watching m&a news. bethe british company getting a company. climbing on the news. it has been reported in the british press. based in scotland, and engineering company is eyeing a merger. 6.5 billion pounds merger. it provides services to the mining and oil and gas communities and trading higher on the back. .p 18% >> ca

yesterday, mario draghi prepare the markets for qe to happen. some time to create the full consensus in the board, and the council. it may take maybe another meeting or two. a decision by consensus is much more effective on the market. his thoughts, probably it is worth the wait to have full consensus to be sure that the data are showing the need for qe. the markets are prepared. i think we may have had a small glitch with that piece of tape. we don't use tape anymore of course. we are much more digitally focused. nevertheless, that was lorenzo smaghi. >> let's get some more reaction. marco, give me a sense of what you made of mario draghi's comment yesterday. the investors were a little disappointed that maybe this was the right time to act. the other saying, this is buried significant. >> it is significant. we expect strong verbal intervention and no action. we got what we expected. we were disappointed back in february-march. going back to what he said about qe, the key sentence of all that he extracted from the government council, unanimous

president mario draghi says any further appreciation of the currency would trigger more stimulus. the rising exchange rate does threaten the ecb's ability to deliver inflation around 2%. draghi's comments, after the euro rose more than 16% against the dollar -- more than 6% in the last year. >> the strengthening of the exchange rate would require to make our military spot -- monetary policy stance to remain equally accommodative. the strengthening of the exchange rate requires monetary stimulus. ministerrman finance has warned investors against prematurely celebrating an overhaul of europe's economies. 's words ofhaeuble caution, after greece returned to the debt market for the first time since 2010. china's strengthening is based on the copper market. a group is buying a copper mine in peru. the seller is glencore extraordinaire, which is getting billion. the deal will help glencore win final regulatory approval for its takeover of xstrata, china's biggest buyer of copper, accounting for about half of global demand. in a year when u.s. stocks soared, ceos saw their pay packages su

it will be very interesting to see when mario draghi leads his group -- whether mario draghi leads hisng or if they just talk about it and that helps prop up the markets. >> take you so much, michael mckee, with the latest on the ecb, no change in interest rates. >> michael lewis is with us, the upper over -- the uproar over his "flash boys." brad katsuyama with iex is with us. michael lewis, you wrote a few years about -- a few years ago about the original sin of ireland. what was that? >> the biggest mistake they made was decided to take on the liability of the bank, the governor -- the government to take on the liability of the bank. they should have let the bondholders and the banks lose money. they did not do that. they tossed the liabilities on the backs of the people. they haveredit, suffered well. they have put up unbelievable suffering in a way that most other countries have not. but i think it was unfair what happens there. katsuyama, you are starting up your own exchange in the u.s. to counter some of the advantages high trading firms have. have you gotten demands or request

here at the ecb or lack of action from the ecb, yesterday, mixed voices as far as whether or not mario draghin. richard just spoke to him, the chief economist at the nomura research institute. saying absolutely no, draghi shouldn't take further action. very much mixed voices here and hope as far as the future of italy is concerned. there are some of my key take aways. back on closing bell to talk to a well known goldman sachs strategist. coming up later on in the program, it's now back to you. >> and those comments from richard which we heard this hour, jules, are interesting because bearing in mind the experience of japan and inflationary stress. him saying the ecb shouldn't take more action carries a bit of weight. oh, there you're back. >> i'm so glad you picked up on that. we were talking about this off camera, as well. he said to me the europe hasn't learned the lessons from japan. immediately my ears picked up and i said what do you mean? you're concerned about inflation? he said no, not at all. it's the fiscal cliff issue and these european countries are falling off the fiscal cliff. h

elsewhere, forex markets, we see a speech from mario draghi, up 0.1%. euro has been stuck in a stubborn range of late. the news today lifting it out of the lull. elsewhere, the dollar, look at it on the back of the yen. not a strong move there. we are seeing movement in the pound as well. >>> let's check in on the action out of asia today, sri jegarajah joining us. >> it's broadly a fairly negative day so far. you would have thought with all the excitement coming from apple and the stock split and the buy bu back and the results from facebook and apple, you'd expect to see more of a pop in the apple componentmakers and the halo effect over that broad universe and sector. we didn't really see it. it was a fairly muted spns out here in asia. broadly, weaker as i said for the greater china markets and the nikkei 225. there's a very specific story on the trade front that the market there was reacting to. disappointment that we didn't really get breakthrough in the dialogue on the tpp between the u.s. side and the japanese side despite the fact that presiden

the mario draghi comments on the euro, impacting trade. to monitor those developments in the ukraine, as you reported with the u.n. emergency meeting. let's take a look at equities. shares in shanghai and shaw -- and hong kong, trading lower today. we are following that mmg acquisition, acquiring the las b ambas mind from glencore. we will continue to follow that any impact on commodities. look at the asx 200. this is what we have among those stocks moving. amitil continuing that decline from friday. friday, it fell to a five-year low on a profit warning from the new ceo, allison watkins. this as investors say they were caught offguard. the shares falling. the main amitil, coca-cola bottle or in australia down almost a 5%. the nikkei 225 has been swooning between gains and losses. active,makers have been including suzuki and toyota. in brewery space, sapporo brewery is up over 3.7%. watch for shares of sharp. they are big decliners today. sharp down on the order of 8% in tokyo. let's check in on southeast asia. jakarta continuing to trade

a lot has been said about mario draghi's intention to force banks to lend. i think that looks extremely unlikely. , lending is happening. as rates normalize, it will become more expensive. the last thing you want is a high reliance on leverage. the second thing you want is a long-term record of delivering. a company that is not trading at huge valuations compared to semiconductor multiples. importantly has a track record of delivering. dividend yield, which is not too bad for that space. thenvestors gravitate from new i.t. into the old school, legacy i.t., they should benefit. emerson, on the back of infrastructure recovery, it is spending again. low leverage, good income generation. >> thank you so much. keep it right there. you mentioned some of these big stocks. rebounding as little bit on these tech stocks. i will ask you about that shortly. here is a look at what else is coming up on "on the move". losing the logo. lvmh tries to win back its exclusive reputation. we will break down the brand ahead of the results. and toyota recalls more than 6 million v

>> yesterday, mario draghi prepared the markets for qe to happen.ohink you need some time create it with the boards and the council. it might take another meeting or two. a decision by consensus is much more effective on the market than one with a split majority. thoughts, it is probably worth it to wait one or two months to be sure that they are showing the need for qe. but the markets are prepared. >> you think this will happen. i know it is difficult to talk about probabilities, but is this nce that the ecb has everything under control or do you think it is a 70-30 chance? what risks are we facing? the equity markets are so pumped with liquidity, they are not weighing the real risks out there. >> clearly, the situation is very fragile. he has said that several times. inflation is not in line with price stability. there are many elements of risk and the enthusiasm by the markets is predicated by the ecb acting. act, i thinkes not there will be huge disappointment in the markets. to some extent, the situation has been created for the ecb to act in

mar mario draghi left rates unchanged. falling during the news conference where mr. didn't rule it out. still no, major moves. just a whole lot of talk from mario draghi. there's euro trading your intraday lows as we speak. and don't forget tomorrow's jobs day just one day left for you to nail the number. tweet us your predictions for the march nonfarm payroll number. use the handle and you will see a wireless speaker autographed by the hire "squawk on the street" gang. you will have one minute before the 8:30 release tomorrow to submit your predictions. looks like we're just around 200,000 in terms of consensus. a little less than that for the number of jobs added during the month of march. carl, back over to you. >> sarah, thank you so much. sarah eisen bringing us up to speed. >>> transports have set a record high today as well. if you're just joining us, here's what you missed earlier on. >> welcome to "squawk on the street." here's what's happened so far. >> when i look at the rates in these countries including a third biggest bond market in the world, italy. whe

comings are that qe is but that really is a big bet against mario draghi. back to you. >> thanks. one company that we mentioned during the opening was alstom. shares had been suspended since last friday after bloomberg broke the story that ge would pursue a takeover of the french company. now we know that alstom is and has approved official talks with ge. siemens prepares perhaps a full counteroffer. editor, david tweed is standing by in berlin. offering $17 billion for this energy business. what do we have so far? first of all, ge is offering $17 billion for the energy business. , thenteresting thing is energy business is the business of servicing those of equipment thater it has already installed. apparently the margins on that are double ge's general margins. ge says this is going to be accretive to earnings immediately. there are other bits that stand out to me. general electric has also said growth would see net job in the business is that it buys. general electric is trying to overcome resistance from the french government, particularly from the industry minister who describ

mario draghi, speaking in washington friday at the imf -- therday, rather -- saying european central bank would likely need to come in with additional monetary stimulus, and it could be in an unconventional form to deal with the appreciation. last week, we saw again for the euro. it appreciated 16% versus the dollar over the past year. if you look at the weekly basis, the strongest weekly advance for the single currency since september, prompting the ecb into further action. >> coming up, swinging into action and taking a golf course downtown. later, we will be visiting an indoor club in the heart of manhattan. >> also coming up, our next guest expects to see a significant slowdown when china releases its latest growth figures in just two days time. "asia edge" is back after this short break. stay with us. ♪ >> welcome back. china's growth may slow to this lowest level in five years with 7.3%.pected to come in at we have been focusing on the slowdown with our guests all morning. one says beijing will act quickly to boost investor sentiment. >> clearly, there is a big china risk. taki

mario draghi said the strengthening of the exchange rate requires further monetary stimulus. and of the words come getting too expensive. -- yetongest stance yes since they began complaining. >> one of the high points was the french bank with the ecb. he came out and said europe is not in japan. just a start if he could be. issue with the euro trading at 138, the goods are not cheap enough to the rest of the world. >> a backstory. what else do we have? >> a lot of data today. retail sales. business inventory comes out at 10:00. earnings, citigroup. talking a lot about financials. prize winners will be announced at columbia university at 3:00. i am in need of a good book. booke most talked about for the imf capital in the 21st century. a both book. every year there is one. check. data stocks, bonds, currencies and commodities. we continue friday sluggishness. futures negative for. flight to quality. euro weekends as does the russian ruble. nymex crude still elevated. the second board is fx oriented. the vix over 17. yet in but still 101.70. the ruble near 36 a big deal. here i

is mario draghi going to be heeding the advice? mine was earned in korea in 1953. afghanistan, in 2009. orbiting the moon in 1971. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection. and because usaa's commitment to serve current and former military members and their families is without equal. begin your legacy. get an auto insurance quote. usaa. we know what it means to serve. >>> you're watching "worldwide exchange." >>> and a recap of the headlines. markets in asia and europe follow wall street stocks lower into the red. investors will find out if u.s. banks are ona downslope. >>> and kathleen sebelius to step down following the rocky obamacare rollout. >>> meanwhile, there's absolutely no shortage of opinions on whether the ecb should take further action and what type of action it should or should not take, none more stronger than the imf after being prompted about i a question from cnbc last week, mario draghi commented on what he felt was an intrusion in

should i focus on janet yellen or mario draghi?ill both play an important role in the coming months. perhaps i am more concerned about europe and the u.s., they are both -- >> gautti eggertson from brown university, thank you for being with us. how about a forex report. euro/dollarere, renminbiuble churns, stronger. stay with us, "bloomberg surveillance." ♪ may face criminal charges in new york. they will appeal to washington. growth isails as user not what he five -- is at 25%. the morning, everyone. this is "bloomberg surveillance." i'm tom keene. joining me, scarlet fu and adam johnson. we will get right to a busy day and a busy week. here's adam johnson. >> german unemployment falls for a fifth month as the economy stance. bank of japan refrains from expanding monetary stimulus. its board members forecast that the pace of inflation will quicken in each of the next two financial years to reach its two percent target. we get the mortgage applications at 8:15. the implement change at 8:30. gdp and personal consumption. 9:45, chica

mario draghi said the ecb is ready to take action if need be. he spoke as inflation has slipped for the past month. it is currently far below the target rate of two percent. there are fears that deflation could have the euro zone economy dragging. like the federal reserve has done in the united states. he is not ready to bring out that big bazooka just yet. >> we do not exclude further monetary policy easing and we iterate -- we reiterate that we expect the ecb rates to remain at present or lower levels for an extended. of time. -- >> thepean european markets like the prospect. some quantitative easing done by the ecb because european shares got a pop on that news. the picture was slightly different over in london where we saw a mild loss for the ftse. the united states, we are seeing red arrows across the board. it looks as if the american markets will snap a four-day winning streak. the focus is turning very much to an unemployment report expected from the u.s. labor market on friday. we will switch gears. european and african leaders have str

what is mario draghi doing about this?nd-a-half ago, we were saying that we have to keep the pressure on the politicians. you take off too much pressure and the politicians will focus on tax cuts and not actually deliver growth by structural reform, which is what people do not want. >> it is the play between the ecb and italy and spain, where they are trying to get them incentive to introduce reforms. france's problem has not been read -- reflected in the bond market. >> what is the point of doing all this if the euro is still high? germany had a pretty strong deutsche mark pre-euro. they had the competitiveness problems. schroeder try to fix those. they cannot point the blame for all of this at the euro, which is what they are trying to do now. >> the other thing is that in germany they produce high-value added goods. they can be competitive to the extent that they do that. they are not producing things that are going to increase exports. those who will benefit from the weaker euro are the likes of italy, the likes of spa

mario draghi was talking about it yesterday. thent central bank and what is going on in europe. >> the u.s. is increasingly about the payroll, how they exit from the easiness of monetary policy. in europe, and you have this growing battle against inflation and whether the germans are prepared to take it more seriously. that is something that worries me from a european perspective. >> it is a heinous crime to make statements ahead of the unemployment numbers. to be fair, jim o'neill has the luxurious position. >> i was asking whether he would the r from bric. how long do they have to deliver? he talked about time frames, look, you had this slow down over the past two years. it is better that you think in half decades. a longer-term timeframe. the past two years have been tough. if we saw another 18 months of that economic performance, the lack of stewardship, policy , that would change his mind. then, of course, nigeria. to talkhen we moved on about mexico, indonesia, nigeria, turkey. he said he spent more time in nigeria than an

every time we hear something from them, especially mario draghi, he goes one additional step. >> i know you're itching to respond to that, rick, but first sam, earnings, less than a week of reports under our belt. how are we doing so far? >> that's right, bill. well, s&p capital iq consensus numbers are actually going in the wrong direction, in my upon, showing a 1.2% decline year over year as compared with a gain that was anticipated of about 3% at the beginning of the quarter's reporting period, so maybe it will turn around. that's our expectation. however, right now it's causing investors to be concerned. >> okay. and rick santelli, what signals can we glean here from what's happening in rates? we can talk about the u.s. dollar, and by the way how about that budget report? >> yeah. >> the budget deficit is down to something in the range of 2% of gdp. >> well, i think there's a couple of things about the budget deficit, and, of course, the u.s. economy and higher taxes temporarily will make this better and we know the u.s. economy is doing better, and probably the reason -- the qualit

. >> ecb chief mario draghi says that that could mean quantitative easing. made those remarks after the central bank announced it was holding the benchmark interest rate steady at a record low of one quarter of one percent. and a rally in europe here with germany's dax closing up closer to the 10,000 mark, but only ever so slightly. the euro stoxx 50 up when five percent. there was profit-taking across the atlantic with the dow falling somewhat. the euro is selling for one dollar -- $1.16. >> u.s. whistleblower edward snowden may receive a summons. >> i panel is looking into surveillance in germany. the united states is seeking extradition of snowden who sought temporary asylum in russia last year. >> for the green party, the matter is clear. he sees testimony by edward snowden as a must for the parliamentary committee probing nsa surveillance in germany. the left party agrees, but some government deputies say the issue is a broader one. >> this is not an inquiry committee about edward snowden. our job is to investigate mass eavesdropping on german citizens,

our expectation is that the inflation rate will gradually rise over the future. >> mario draghi at leastlluded to the fact that you as well are now in favor of quantitative easing but there was some back pedaling as well by other governing council member, not only you. where is the governing council standing. >> i wouldn't consider this back pedaling. i think you have to see what the governing council declared. the governing council said if there is a too prolonged period of low inflation rates, it will also consider unconventional instruments. and there's a range of these unconventional instruments and they're different in effectiveness. they differ in the risk and side effects. we'll also have to consider the limits of our mandate and the limit limits that the treaty delineates. >> but in your opinion, does the treaty allow the ecb to buy government bonds when it went into this quantitative easing scenario? or is it more treasuries or anything else. >> that's a point we'll have to discuss in the governing council. we're discussing reaction to a hypothetical scenario. so i don't think i

youpeople betting on qe, are betting that mario draghi will be wrong. >> there is news about europe's next round of stress tests and how they would work. debbie catching up with a ecb. that era beenrned 90% fall in stocks and north percent inflation. some of these basal be tested. some are not far off a couple of those. they are serious. banks are taking it seriously. things have spent on the ballot .heets by 104 billion euros that is just since last july. take a listen here. >> what we find out will be less than what it will be if -- with that concerned awareecause the market is of what is going on. >> the good news. they're strengthening the balance sheet. the bad news is that yesterday shows that bank lending in the u.s. is contracting. was two things are conflicting goals. how do you get angst to write capital? >> thank you. rex twitter disappoints. revenue goes up, but user use goes down. hans nichols gives us the numbers and what we hope is more than 140 characters. [laughter] always been a bit of a popularity contest. on that metric, it is losing. user growth is not as strong e

mario draghi said because of this we might need more stimulus.nable to drive this one much lower. the french ministry minister calling for an eu meeting on the euro. picture that. this one right here becoming more and more politicized by the day. bloomberg tophe headlines today. emergency services continuing to search for nearly 300 people missing after a ferry sank off the coast of south korea killing nine. on hundred 79 have been rescued in most of the passengers were high school students on a field trip. u.s. secretary of state john kerry has arrived in geneva for crisis meetings with russia, ukraine, and the eu. the diplomats are meeting for clashest time since erupted in eastern ukraine. president obama says they will face increasing economic penalties unless vladimir putin supporting separatist militias inside ukraine. janet yellen looking at wages for sign of inflation repression. pay gains continue to proceed that historically lipases giving the first major monetary policy framework speech yesterday. by responding to changing circumstance

this is everything set mario draghi and they ecb -- and the ecb are most worried about. >> so far, thataging news. may show up in tomorrow's confidence numbers. to cancel orders, to stop doing business might be a longer lead time. i could be wrong. they might well show a different complexion. >> the export a lot to russia. -- the export a lot to russia. >> that has not come through. the services beat and the manufacturing beat, but it is about the input cost. russia is undoubtedly a huge is to -- a huge issue. >> we are getting the aggregate eu manufacturing figure at the top of the hour. stay with bloomberg tv. ♪ >> smartphones lowdown. demand for higher devices ways on arm as apple braces for its first flat sales in a decade. china worries the world. asia'sfalls when second-largest economy fail to respond to stimulus. and u.s. troops arrive in eastern europe as the crisis in ukraine escalates. welcome to "the pulse," live from bloomberg european headquarters in london. i am francine lacqua. guy

. > >what did you make of the comments yesterday from ecb president mario draghi? he was talking stimulus and it seemed as though the stock market had a case of the jitters on his comments. > >mr. draghi did cause the jitters. you hit it right on the head angie. that was basically because despite keeping the lending rate at .25% for the ecb, he talks about quantitative easing. that really strengthened the dollar against the euro and therefore the market pulled back a little bit here on the cme floor. > >coming up today we have a couple of ipos debuting in the market including grubhub which is based here in chicago. will you be a buyer? > >i will be an absolute buyer of grubhub. i use it all the time. in fact, i know the guys that started that company. it's an amazing success story and they've got a lot of momentum right now. if they can do anything like yelp has done i would definitely be a buyer of grubhub right now. > >what else would you be buying or selling in this market? > >if i would be buying anything right now it would be the u.s. dollar. the fact that the

should mario draghi be pursuing quantitative easing, and if so, how aggressively?. draghi has shown a very practicality, and i have no doubt that mario draghi is a european central banker but also works with the american culture. >> should he be doing it now? >> probably not yet. >> and why not? the risk reward balance is not quite right yet? >> yes. >> do you worry about the formation of a credit bubble in europe? look at the yield at the spanish bonds. what do they say to you? >> it is true that they have , anddown considerably there was reason for concern and but i do not see elements for a specific worry and i think this creates flows from the economies to the periphery of the euro. there is also the fact that the periphery of the euro has done a lot of things. we are proud that italy is the only country in southern europe that has gone out of the so-called procedure, that has managed its public finance without a program and without a troika. >> mario monti, always a pressure, the former prime minister of italy. back to you. and a special thanks to former prime

mario draghi's comment striving euro/dollar low by 0.3%. is that enough? most people say no.gen says this would have to hit 1.50. for euro/dollar to go lower, most experts will tell you one thing, you need better data out of the u.s. and you need a dollar rally. u.s. retail sales out in a few hours. looking for 0.9% growth. that would be the best month since september, 2012. we will get more on that later. up next, china to the rescue. private equity titans. the company's appetite for them and they could revive europe. that interview when we come back. ♪ >> welcome back. you are watching "the pulse." i am guy johnson. francine lacqua what is off today. she will be back soon. finance minister says they may grow far from the projected this year. its strategy is to do better. some people are currently thinking. trying to share is the core of our objective, to find the best way that achieves reducing the deficit. bruce -- bubba watson wednesday masters. he shot a three under par. 69 on the final round. --is three strokes over ahead of jordan speak. -- speith. russia's ambassador

whatu were talking about mario draghi will do, the euro is a bit too expensive.onger-term we are optimistic about our opportunities. phillips is well-positioned with regard to mega trends and we see the aging and growing population that needs more health care. roade minister pahlavi's, operators, building operators are looking for led lighting. we grew our is this by 37% in the quarter. just underlining how much potential that technology has. we remain fully committed to our 2016 financial targets. >> many of our viewers will be aware that you are awarding these contracts to install complex lighting systems. you won this contract in washington in november. how big is this market, how much of a slice of this market cam phillips attain? -- ken phillips attain? -- 60% hisn 60 business-to-business and business to government. the contract size is rising as we engage with customers on long-term projects in health care and lighting. these lighting projects where we help cities and road operators 80% are-- 70% to fantastic. they come with business models where cities can

. >> mario draghi has spoken once again. he spoke yesterday in amsterdam.e was more explicit in his language. he said that the ecb may start on buying if inflation, if the outlook worsens. how close are we to further measures from the ecb? >> again, probably within a few months as far as quantitative easing is concerned. i think the bank can take steps before that, possibly just in terms of another cut in the refinancing rate. so i do think quantitative easing will come. the interesting thing, for me, will be, what happens with the april inflation data? a lot of the ecb members have been talking about that. they are banking on a sharp acceleration in inflation from .5% to close to 1%. temporarily will take the pressure off. i do still see quantitative easing ahead. draghi with the strength of the euro. a board member said a strong euro is causing us problems right now. it is stubbornly high. >> it is not moving. the potential problem is that will not move it as well. this low volatility we have at the moment will persist for quite a while. there is a cloud

mario draghi said the qe was not imminent. it does not seem that way. .65 pushing higher. we are looking for nine percent of the quarter. it will be the best quarter since 2010. the bank of england, there'll .5%. does it take before somebody at the bank of england comes out? much.nk you so the latest on the markets and the british pound. a portfolio manager at sturgeon $190al where he oversees million in assets. great to have him on the program. give me a wide sense of the sanctions. these could've been a lot stronger. they have not been. the markets are taking them and stride. will a common point where they are pricing it wrong? to make sure russia could do the right thing. so far, it does not work. we have to keep in mind which is it is a very important sanction. see the other companies into europe and what to the relationship is. exxon, a lot of companies have shares in russia. we still do not know what will be the consequence. probably, the biggest u.s. sanction. >> you are right. if they have relation with all of the major oil companies, what does it mean for your str

is mario draghi said he would do whatever it takes.now, he has been going out to the market and moving it like that here it the market is telling them to put your money where your mouth is and let's see some fiscal easing. >> they have gotten weary of all the tossed. what about this release of the minutes later on? yellen -- it has been pretty clear in telegraphing around the world. >> the meeting around -- the meeting they had, there was an infamous press conference where janet yellen said she would continue -- consider raising the press rate on schedule for october. that got people thinking, the market -- denominated assets will be more appealing. let me by that. what happened was she backtracked and we saw the dollar fall. we will get an idea as to what the overall sentiment of the what -- of what they've market committee is. are they all on board with her and is she an outlier? that will be market moving information. if they are more hawkish, we should -- we could see a rising dollar. >> how is the market's perception of the dollar

less likelyseems the fed will tighten, and the euro is strengthening, and that is bad news for mario draghiny because this inflation stays on track, their economy might grow more slowly. >> what do you think, mario gabelli? >> the jobs report is an element in the total mosaic. improvements will occur. the private sector is improving. this morning, for example, class a truck orders are coming in attic celebrated rate. there are a lot of dots to connect. comment --, april, may, we will get past the weather. >> given the fact that the fed has said we will do away with engine marketing the policy -- , doesarking the policy that change the way you view how the fed will move? >> you have a very simple example of going beyond the curve, the bell shaped curve of what they are doing. trillion,four dollars -- $4 trillion. how are the banks reacting? the central banks are working together in unison. it is kind of a put in the market. mike, given what we are saying with the jobs market, and as mario seems to be dismissing the impact the fed will have on the labor market. thethere any other levers centr

for capital outflows as the fed gets closer -- >> those remarks should not have gone well when mario draghisame thing at the last ecb press conference. >> normally, policy makers don't like advice from outsiders. i think she considers resell something of an insider there. >> if you are an investor, what's your take away? >> not a whole lot. forecasts, sodp this is the 84th will stop you don't really need another one. but he gives you an idea of what the global economy is doing in some countries you might be thinking about and give you a holistic picture. the imf will be coming out with the second part of their essays on global financial stability and people look at those very closely. >> i don't know if you've done the math but if we were to take forecast, how much money does that translate into? >> that's a good question. i don't really have a figure for that. in the united states, we know the economy is 14 trillion, that would be about $140 billion, but that's just the united states. you are looking at an enormous amount of financial capital around the world. >> that is the reason i raise

listening to mario draghi and reading his speech, the best case scenario is pretty much unchanged.tion will stay low and cut act towards target. that is their base case. they are going to remain unchanged on the policy side of things. stay where he on the euro. >> i am mark barton in london. these are the bloomberg top headlines. to agreeats will meet on the names of more russians to be targeted in the broadening of sanctions over moscow's actions in ukraine. yesterday, pro-russian separatists freed a foreign observer in ukraine. seven others are being held. minister tonyme abbott says it is possible a missing malaysia airlines jet will never be recovered. searches for the plane have been canceled with authorities pointing to a new underwater operation. president obama has just arrived in the philippines. he will be in manila for a state visit. the u.s. and philippines have reached a 10 year pact that would allow a larger american military presence in the southeast asian nation. >> back with us now, michael o'sullivan. thank you very much for sticking with us. let's talk about some

this makes it -- harder for mario draghi over in europe. that this is happening as president obama leaves japan. insults the chinese by saying i will side with the japanese -- >> not installed, but you wonder if they are trying to stay with the dialogue. he is speaking right now in seoul. it is a busy morning particularly on the you crane. belongs tot page what is happening in ukraine. a warning for russian president vladimir putin. secretary of state john kerry says putin is running out of time to do with the crisis in ukraine. he did speak yesterday in washington. take a listen. >> be window to change course is closing. president putin and russia face a choice. of russia chooses the path o de-escalation, the international community, all of us will welcome it. if russia does not come of the world will make sure that the cost for russia will only grow, and as president obama reiterated earlier today, we are ready to act. >> and of course kerry spoke out as putin warned ukraine against continuing anti-separatists that killed at least five. >

and mario draghi, president of the european central bank, says if the euro appreciates anymore, the eveningthe u.s. because they want to make their economy more competitive. they wanted to value their euro, they can increase exports and have a more viable economy. >> true, mario draghi said he is interested in pumping more money. one of the catalysts for the bull run in the market was his idea that we were going to see this macro rotation of money coming out of wanted to stocks. that the investment thesis is still hold? >> not so far this year. it has been exactly the opposite. there has been a rotation out of stocks into bonds. realistically as there is a stellar student economy, that could be the better bet, and right now people are not really seeing it. >> lisa abramowicz >> this is "market makers." >> goldman sachs and morgan ststanley earnings beat estimats and shares are soaring today. first-quarter report still shows some potential warning lights ahead. tale of two sodas, coke and pepsi both out with earnings. they're looking to diversify out of sugary drinks. one is doing it better

eastern time followed by a news conference from mario draghi coming up at 8:30 a.m. eastern.ll have more on today's euro events in just a few moments with ross. he'll be joining us from london. right now, take a look at the futures. check things out right now, you will see that the futures are indicated higher. dow futures up by about 14 points even after those big gains from yesterday where you saw the dow reaching aew

mario draghi, did he capitulate at the weekend or did at 1.39ervous at 139 -- for the euro?hat is mean for investing? >> a think he is right to be concerned about the level of exchange rate buried i think it helps to build a consensus of the european central bank to identify concerns that could derail this very shallow cyclical recovery that we are seeing in europe. i think it is a legitimate concern. the question for consent -- for central bank is can it do much to adjust the rate? it does justify more vigorous monetary policy action. >> in the break we were talking how some of the countries are reporting. i'm more interested perhaps in some of the luxury story could take me through your thinking on that? t. >> people up in very concerned about china. it affected french luxury. it seems to have dissipated. you have an affect from japan coming in because of the consumption tax hikes that is causing a lot of turbulence in the sales of luxury stores in japan. china seems more robust than many people thought. >> that is going to be incredibly important in that story. time is ru

we have heard it from mario draghi as well. we get industrial production in the united kingdom expected to rise by .3. you're also going to get a scope of where the budget is going to look. let's see what is moving in italy. technology on the downside. microstmicroelectronics dropping off there. where should we start? we have a little bit of news on carrefour. stock off half a per sent. bouyges in talks with free about selling their telecoms business. apparently on the phone trying to get a better bit. sports direct, a huge retail outlet here in the united kingdom. the chairman, mike ashley, very well known football man. he sold $3.2 million worth of stock apparently. when the main man is selling stock, maybe that is an indication. morgan stanley, maybe this is their worst pick on the commodity. they say price also drop the next four quarters. nymex crude, inventory data. we're expecting gas inventories to drop. >> thank you so much, manus. manus cranny with the latest on the markets. joining us is the chief investment officer

mario draghi speaks later. elsewhere, look at kiwi. the new zealand dollar up by 0.3%. this one keeps on moving. it is the best-performing currency this year. the bank keeps on tightening. investors expect more hikes down the line. >> thank you so much, jonathan ferro with the latest. joining us from our perspective is anti-lynch, portfolio manager who helps oversee kroger's 1.5 billion pounds of assets. what excites you the most? we have a little bit of everything. yesterday we had china, today we have data from the eurozone. we also have these megamergers. we have tech stocks on the move. what do you feel is a great way for investors to take advantage of? >> if you look at mergers and tech stocks, it shows where sentiment at the corporate level is improving. ge aren't going to be looking to spend massive amounts of money on alstom unless they feel confident about the trends in the underlying economy. you buy when you can see the upside in growth potential going forward. if you look at the apple numbers, selling that many iphones, at the consumer level people are prepa

the euro is weakening after comments from mario draghi saying that if it does appreciate further, they stimulus. the euro is a bit weaker against the dollar. gold futures rallied today, trading 13.22 an ounce. this is also playing into safer haven. we're going to go on the markets again in 30 minutes. ♪ ♪ a >> live from pier three in seven cisco, welcome to "bloomberg west," where we cover innovation, technology, and the future of business. the white house wants security agencies to disclose security flaws. how much of a game changer will this be? will it put us more or less at risk? time for tech in the sharing economy, from air b&b to uber and bitcoin, we will see how this is changing thgs