we will hear from mario draghi himself at 1:30. ll be following all of that on the ground. i'm sure he will ask a question to mr. draghi. we will bring the entire press conference to you live. >> for more on the ecb, we are joined by stephen gallo. stephen, good morning. there is talk over rate cuts. that looks like a foregone conclusion. you are talking about liquidity injections, asset purchases. what would you like to see mario draghi and outs? >> -- and outs? announce? >> if he can walk away with disappointing with the markets are looking for, having cap the , i thinkapped the euro that would be a job well done. from headingtop it back to 1.37, he would have to follow up a rate cut with something regarding non-sterilization of balance sheet expansion. that would be the best way to try to cap it there. or he can continue to try to use rhetoric. but the timeline is slim as far as how far that can get him at this stage. >> you don't want him to go beyond the 10-15 basis points in terms of cuts to the rates. >> it is not that i don'

what mel mario draghi deliver -- what will draghi deliver? the ecb president last month hinted that today a cut may be in the cards. >> before we act, we want to see the tough projections that came out in early june. >> guy johnson is in frankfurt where draghi will be delivering the central bank's latest decision. good morning. what's he going to do today then? >> that's the big question. to my mind, there are three options now on the table for mario draghi. a sliding scale of what he can deliver here in frankfurt along with the rest of the governing council. we just heard what he said this time last month when he opened the door to today's possible rate cut. it is the deposit rate that everyone will focus on and this is the first time a major central bank, as you say, have gone into negative territory. them experimenting with this but this is the first time a major central bank may deliver a negative deposit rate. these are uncharted waters. what we may see is testing of the waters. he may just go a little lower, maybe just one point lower,

part of the debate is mario draghi.> lenders are loosening their grip on credit to consumers. whether for homes or cars. our lenders reverting to the mean raise the industry returning to bad habits? doug lebda is chairman and ceo of lending tree. loans, smalldent business loans, tuc a loosening of credit? is it interesting thing is not necessarily coming from banks. it is coming from alternative lending platform. startups putting credit to consumers and taking balance sheet risk. or coming from institutional investors. >> what are some examples? what you just said is an earth shattering statement. that is shadow banking. likeat is, companies prosper and others taking money from institutions and putting it in the hands of consumers where they can get lower rates than high interest credit cards. it is across the credit spectrum. moreave people lending to subprime customers. i think it is appropriate, the pendulum is swinging back. pendulum ofhe same 2005 and 2006? i weave repeating history? we just create an open exchange

takesing up, mario draghi one of the main rates negative. we will discuss the latest move to stimulate europe's economy. ♪ >> first. bloomberg. >> time for today's company news. tensions in the ukraine are impacting western businesses in russia because banks have become reluctant to fund projects. the chief executive officer spoke exclusively with bloomberg television. >> the first thing which is having an impact on the business with russia, not only total but all of the other banks, including americans. financial lot of institutions that have artie been taking -- that have already been taking i would say a cautious position, which means even if it's not for bid and, let's wait and see before we continue to lend money. total. was the ceo of last month they agreed to set up a venture to seek oil in siberia. bank of america would provide at least $5 billion to consumers as part of a proposed settlement of a probe into its handling of mortgages at the head of the financial crisis. u.s. prosecutors have been seeking more than $13 billion from th

the ecb is lowering -- what mario draghi came up with. the ecb is lowering its benchmark interest rate cut to just zero point 15%. it is also becoming the first major central bank to introduce a negative deposit rate. that is an attempt to boost lending to small and medium-size businesses. loansb is also offering to other banks, but on the condition that banks lend more to eurozone is this is. that, mario draghi said the ecb could take more measures if needed. we are not finished here, that is what he said as he spoke during his monthly press -- press conference in front for. as to what countermeasures the ecb would come up with, earlier i asked jesper lawlor in london. i asked him whether he is firing a bazooka or a peashooter. >> i do think that a couple of hours from now, the ecb has largely met expectations going into this. there were a number of policy tools that were a possibility before this and i think they have tics most of those boss -- boxes. on the face, expectations have been met for this meeting, but it is more a question of

what will mario draghi say about the state of europe?just ahead. >>> plus, we're getting ready for tomorrow's big jobs report. what investors will need to know when the opening bell rings on wall street. >>> and the view from the valley. the cofounder of coin base talking about the founder of bitcoin and the managing partner of tech venture capitalist firm, andreessen horowitz, scott kupor will be our special guest as the final hour of "squawk box" begins right now. >>> welcome back to "squawk box" here on cnbc, first in business worldwide. i'm joe kernen along with becky quick and andrew ross sorkin, who is in san jose this morning. one bubble left to be popped, unfortunately. who else -- >> you forgot about -- >> the piketty snowden. >> changing his mind on that. >> piketty, snowden, obama -- >> no, no. >> coming around on evine. i mean, it just -- >> i don't know, i'm coming around on bitcoin, but not completely, not completely. >> you're coming around on beats, too. >> no, no, no. i'm coming around on apple. because i think they did

running through the details of what we got from mario draghi yesterday, we are through the market open. investors still digesting what draghi delivered. what theseigure out words ultimately actually mean. >> we think it is a significant package. are we finished? the answer is no. we aren't finished here. mandate,e, within our we are finished here. >> are we finished? the answer is no and the implications of that are quite disturbing in some ways. the implication being that there is still more work to be done because the european economy is not out of the woods. let's talk about all of this with the chief investment officer at ccla investment management. good morning, james. what we got yesterday, pretty good for european stocks. what more do we need to see to keep the rally firmly on track? >> we need continued commitment by the european central bank. we also need a reform agenda. i am particularly thinking about italy and france. at what point will the bund is bank say, we need more help? i think it is critical for france and italy to reform. the third issue of course is we need the b

might have to do you more in fact mario draghi himself said at the last e.c.b. presser so if the e.c.b. does do more what would you recommend to do and why why i think there's no doubt that mario draghi would like to push further i mean that's pretty clear from his language his body language certainly suggested i think he wants to go forward with some version of quantitative easing large scale asset purchases it's clearly much more difficult to do in the european context than it is in the united states the fed of course has. been a big buyer of u.s. treasury securities and mortgage backed securities there is no version of the us treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to. through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending r

might have to do you more in fact mario draghi himself said at the last e.c.b. presser so if the e.c.b. does do more what would you recommend it do and why why i think there's no doubt that mario draghi would like to push further i mean that's pretty clear from his language his spotty language certainly suggested i think he wants to go forward with some version of quantitative easing large scale asset purchases it's clearly much more difficult to do in the european context than it is in the united states the fed of course has. been a big buyer of u.s. treasury securities and mortgage backed securities there is no version of the us treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lend

might have to do you more in fact mario draghi himself said at the last e.c.b. presser so if the e.c.v. does do more what would you recommend it do and why why i think there's no doubt that mario draghi would like to push for them and that's pretty clear from his language his spotty language certainly suggested i think he wants to go forward with some version of quantitative easing large scale asset purchases it's clearly much more difficult to do in the european context than it is in the united states the fed of course has. been a big buyer of u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment. deeper asset backed security market in which the c.b. would intervene in order to push down private lending

might have to do you more in fact mario draghi himself said at the last e.c.b. presser so if the e.c.b. does do more what would you recommend to do and why well i think there's no doubt that mario draghi would like to push for them and that's pretty clear from his language his body language certainly suggested i think he wants to go forward with some version of quantitative easing large scale asset purchases it's clearly much more difficult to do in the european context than it is in the united states the fed of course has. been a big buyer of u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited and controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might. move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private len

i have to say, though, jim o'neill, ex-goldman sachs, mario draghi, ex-goldman sachs. the two men know each other. i talked to jim and he said that draghi could deliver today. >> i think this meeting on thursday is going to be interesting and i would imagine at the margin, i don't know there might be a bit further of a surprise from the e.c.b. because they see kind of operator that has proven by what he said in this building two years ago. >> anna, draghi has delivered a lot with words. the question is does he now have to deliver some actions? he hinted at some action today. the big question is will he go far enough? a, to get the euro a little bit lower and b, to get lending to smaller to medium sized companies going again. they provided 80% of the jobs in europe. we have an unemployment problem. we need to get these companies going again. we need to get the banks lending to them. that is probably a really big job now for draghi and the rest f the governing council. >> thank you. let's continue this conversation about what the e.c.b. will do with the chief european con

might have to do more in fact mario draghi himself said at the last e.c.b. presser so if the e.c.b. does do more what would you recommend to do and why why i think there's no doubt that mario draghi would like to push for them and that's pretty clear from his language his spotty language certainly suggest it i think he wants to go forward with some version of quantitative easing large scale asset purchases it's clearly much more difficult to do in the european context than it is in the united states the fed of course has. been a big buyer of u.s. treasury securities and mortgage backed. curity there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited and controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think

forward guidance could be one of mario draghi's clear strategies.here could be lower levels, if needed. he could maintain that language, even if there is a cut tomorrow. the rates could continue to fall. they could go from a little negative to more negative. he has room to fall. it is important that the markets believe that forward guidance does not change in there has not been a change in the ecb strategy. there is no talk of an exit, at this point. >> the signal is that he could come up with unconventional measures, as well. government bond trading has been getting pretty exciting. you also have talks of lending to smaller companies. >> you are right. there has been intense speculation and there will be relief when we hear what the ecb has up their sleeve. the rate cuts -- the the market is looking closely at something to the bank of england's funding-four-lending scheme. on thended -- lend conditions. they said they may give five percent of the outstanding loan thatolios on the condition money is lent the two companies that are smaller. is up for

might have to do more in fact mario draghi himself said at the last e.c.b. presser so if the e.c.b. does do more what would you recommend to do and why why i think there's no doubt that mario draghi would like to push for them and that's pretty clear from his language his spotty language certainly suggested i think he wants to go forward with some version of quantitative easing large scale asset purchases it's clearly much more difficult to do in the european. tax than it is in the united states the fed of course has. been a big buyer of u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited and controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment. deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that

june 15 is when we get mario draghi taking to the stage. >> thank you.are the bloomberg top headlines. the u.s. department of justice has disabled at hacking network that generated losses of $100 million or more internationally. it announced charges against -- behind the game. authorities are urging computer to run thorough scans in the next two weeks to remove the viruses from their computers. a dozen people are dead in the province after clashes. insurgents attacked and people died in a blast rebels say came from an airstrike. the key rates with at 2.5% for the 10th month. >> the central bank of india has left rates unchanged for the second straight meeting. this is an -- a nine day old government. predicted by all 38 a numbered news survey. the r.b.i says that further policy tightening will not be warranted if consumer price inflation stays on course to hit percent in january 2015 and six percent a year later. if this inflation is faster than its is dated it could revive headroom for easing of the inflation. consumer price gains did a .5% which is the

you can thank mario draghi for today's stock market records. investors bought up stocks after european central bank president mario draghi announced early this morning a batch of stimulus measures to boost europe's economy and to encourage banks to lend more in the eurozone. that led to market rallies here on wall street and all around the globe. the dow rose almost 100 points, closing at a fresh record of 16,836. the nasdaq gained 45 points, and the s&p 500 added 12.5 points to the new record of 1940. jeff cutmore is in frankfurt, germany, and has more on those moves by draghi. >> reporter: what we saw today was classic draghi at the ecb. a little bit of jam today and a lot of jam tomorrow. so let's talk about the details today. the key moves were in the interest rates. that ultimately now sees a negative deposit rate here in europe. the other big announcement was related to what they call ltros. these are longer-term funding programs. it's a way of squeezing money into the banks to try to encourage them to lend into the real economy. and cred

might have to do you more in fact mario draghi himself said at the last e.c.b. presser so if the e.c.v. does do more what would you recommend it do and why his language is spotty language certainly suggested i think he wants to go forward with some version of quantitative easing large scale asset purchases it's clearly much more difficult to do in the european context than it is in the united states the fed of course has. been a big buyer of u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that young vide men will go along with q b. that's yet to be seen it is signif

>> you can watch mario draghi's news conference on bloomberg.com/tv.eneral motors ceo reveals the details of the internal investigation looking into why it took gm so long to fix the fatal problems that led to the recall of millions of vehicles. ♪ >> we're about 30 minutes away from the opening bell. equity futures are high. rates. is cutting its mario draghi is speaking now. we will have much more on the headlines. it is not just the environmental threat being waived. a new report on the keystone vulnerability the of a possible terrorist threat. detailsthe straight-ahead. mari barr is revealing new details in this hour. why it took more than a decade to recall vehicles. for more on the headlines coming we are joined by jon ferro and mike mckee. give us the update. >> if anyone doubted mario draghi, they have thrown everything added except the kitchen sink. they have cut rates, taken the deposit rate negative. they have unveiled a package of measures. is about credit easing. beyond that, it is about the chance to prepare for a quantitative easing progr

clearly, euro trading lower as we expect mario draghi to unveil rate cuts. but will it also be stimulus in terms of lending for smaller companies? a look at how we are trading on the market. a little bit of caution ahead of all this data. the adp, the rabbit payrolls number coming out. private payrolls number coming out. lower.ot the dax trading see, caution after yesterday. we saw the stoxx 600 drop from the six-month high -- the six-year high, i might a. -- i might add. i want to check out how tesco is doing after those numbers came in. had been expected. up 1.6%. apparently, the picture is. . if you are a customer. prices are being slashed. higher noting anytime soon, not for several months. companys never been so added. volkswagen is selling shares. all to get their hands on skandia, the swedish truck maker, selling shares to be able to pay for that acquisition. by -- is off by half a percent. once again seeing sales drop. car sales down 11% across this brand in italy. thank you. let's talk about what else is happening today. g7 leaders meeting in brusse

stay tuned for our live coverage on the ecb interest rate decision, followed by president mario draghi's press conference. we'll see what kind of question jeff will fire mr. draghi's way. also coming up, we speak to the president of ifo, hans-werner. >>> also coming up, jeroen dijsselbloem. >>> moving on, g7 leaders say they won't shy away from taking further action against russia if necessary. condemning moscow's continuing violation of ukrainian borders. julia is in brussels where leaders are due to convene for a second day of the summit. i'm just wondering, they're very good at putting verbal pressure on russia. but is that still credible? >> it's a really great question, carolyn. three conditions they want to see from russia, the first is they want to see russia admit and acknowledge the next ukrainian government. the ukrainian president that was elected 11 days ago. they're still not happy even with the softer tone coming out of russia. they want to see complete removal of troops on the border and they want to see this flow of weapons from russia into ukraine stop. at least they are

ecb president mario draghi says he is aware changes may not be popular for those with savings or other investments. >> these are people who signed assurance policies with insurance companies, and they see the value of these insurance policies going down. these concerns are serious. here, the answer is that interest rates will go up. will go up when the recovery will come back. when growth will come back. >> for now, money is cheaper than ever. to encourage lending, institutions will now be charged for parking their money with the central bank. drug he also announced a four-year 400 billion euro program to encourage banks to increase commercial lending. the moves are designed to encourage growth in struggling euro zone economies. >> as regards structural reforms, important steps have been taken to increase the competitiveness and adjustment capacity of labor and product markets, although progress has been uneven and is far from complete. >> druggie did not rule out taking further unconventional steps if deflationary pressures increase. >> there's big news -- this negative interest rate

advised important what mario draghi does?important to what it does to emerging markets? >> i don't think it is that important. it is more important for europe demand for emerging economies. teases -- eases, the euro weakens and if there is not the euro continues to strengthen and the european economy continues to struggle. europe,n the quiet of there is economic growth and is inflation. to apeople are looking concept of a new neutral and a dampening of gdp. when you look at emerging markets, are they part of a new neutral? >> what has happened is that we have, with the opening of china growth.00, very strong emerging economies, including china, had a significant setback and it recovered after 2009. 10-2011, there has been a slowdown in economic activity and ask parts -- exports are not growing. growthhat, we had slower going forward. some countries may have accelerated growth, like vietnam and india. growthy still have less and a slowdown in economic activity. >> the thing i cannot understand and maybe you can help us figure

mario draghi will be speaking on thursday. a lot of high expectations, worry he won't be able to deliver on .expectations. they're expecting not just rate cuts, maybe forms of quantitative easing, bank loans. they'll throw a lot out of this. they expect a lot of support to come in. there is worries he may not be able to deliver on that. >> then stubborn in past about moving on. >> it is very complicated over there with the ecb. not the same as our system. many different countries will buy bonds from different countries, corporate bonds. bottom line, it is weakening our market today. they upgraded the materials sector. talked about improved chemical production. a lot of companies are buying back their stock. all on the upside. they up graded the energy sector. consumer discretionary, slower pace of housing activity. i think the data in the last week or so has been better than some of the bears suggested. you see the housing stocks mixed. and financials underweighted this. this is the big surprise here, talk about a flattening y

you could not accompany newspaper over the weekend without everyone talking about mario draghi and whatll do later this week. reduce the rate into negative territory in helping to put money into the smaller businesses as well. one quarter of a percent lower in anticipation of the june meeting. the us trillion dollar, interesting move there, down a half percent against the u.s. dollar. we have seen housing starts actually dropped surprisingly and house prices down, two. let's have a look at the market and how we're doing in europe. we are generally up on the day. in the industry groups it is the minersthat are up -- the that are up. every industry group is currently trading higher. $64 trillion. that is a value of global stocks. appetiteas though that is continuing into the month of june. >> in 25 minutes time, it is surveillance with tom keene. he joins us from new york with a bit of a preview. what are we looking at today? >> an interesting week. the wall street journal article on mr. icon and mr. mickelson and billy williams. mr. carl icahn and phil mickelson. of themer chairman secur

mario draghi delivering rate cuts.ng-term refinancing operations and hinting at q.e. . where does this take us from here? let's bring in james to think about economic implications of where we are now. in terms of what draghi delivered yesterday, give us a sense of how far went. what it means for small and medium sized companies around europe and what it means for our banks. >> he went as far as expected and we were impressed. he cut interest rates a little bit. it didn't matter that it was only 10 basis points. he put in place incentives. >> negative deposits. >> that's right. the long-term financial crisis it will provide funding for banks. o small and medium-sized enterprises and to households. this e.c.b. will buy -- from the banks. why not start landing money to firms? >> that's really the line that is driving the markets today. we are not finished. he did the rate cuts that everybody expected but now we want to see the more radical measures. >> the life of the i.m.t.'s that will never be used. always be just in th

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this goes back to what mario draghi said over the weekend. talking about and uneven recovery, different stage in the cycle compared to the rest of the world, the u.s. and japan. this is very much a confirmation of that. it is interesting that -- i mean, you are looking at overall. the composition comes in -- the composite comes in below 52.8. anything above 50 is an expansion. so there is a recovery, just the pace, the momentum of that recovery could be beginning to run out of steam. the service data sets up the stage for gross domestic product and ifo. you will get that data tomorrow from germany and it will give you a little more. the projection on what the forward view is going into the summer months. disappointing. let's have a look at the euro. this morning, it reacted against the dollar. it dropped. 1.3590, breaking that 1.3600 level. >> it is a little bit soft, the data that mario draghi was looking at. that is why he signaled in the interview that rates would stay at low levels for at least the next 2.5 years. >> exactly. >> and he is

not the news you would hope for if you are mario draghi.he continuing story seems to be that you have ok numbers from northern european nations but a big drag from the rest of the region. the euro is trending upwards of little bit. 1.3658 is where we are trading. u.s. data a little bit later on as well. it is a fairly quiet start to the week. data pretty much in line with expected. as we wrap up the quarter, probably worth taking a look at where we are. quite a quarter from an m&a point of view or in equity point of view. nick nelson joins us now to give us his take on where we are. equity markets, you are trying to figure out which is the least of the asset classes. there is not a lot to choose from. markets have marched on. as we head into the next quarter, are there any trends that are worth taking into the next period? >> i think your analysis is right. you get nothing on cash, negative returns. government bonds are incredibly low. spain trading below. i think by default, people have said equities. you still have in europe about a 3.5%

that's with mario draghi's action today among a number of other things.t took off after that and that's where it zits. time for some unusual activity. dr. jay is seeing unusual stuff going on in a name today as he law enforcement official does. what is it, doc? >> whole foods. had a horrible report just less than two weeks ago. >> earnings report was not good. >> stock dumped all the way down into the mid-30s. however, today in the first 15 minutes they stepped in and rapidly bought a whole bunch of july 40 calls as well as the 30 calls that actually -- 39 calls, i'm sorry, that actually expire tomorrow. but these july 40 calls have a little time to run and as you can see right here, these made a very nice move the to the upside as well as the 42 calls out there also -- >> wise move from big time to the upside. the 42s, a similar look. >> right. and the 40s went from 14 cents into i believe the 90-cent range. stock's up 4% today. a's say, they started in the first 15 minutes of trade. it has picked up. 60,000 contracts so far today versus just 6,000 on a

you can thank mario draghi for today's stock market records.estors bought up stocks after european central bank president mario draghi announced early this morning a batch of stimulus measures to boost europe's economy and to encourage banks to lend more in the

built for business. >>> thanks heavens for mario draghi, the head of the european central bank and thet and i heard what draghi said to get europe moving again. i'm shocked at how he's being. deflation as much as inflation which makes sense because deflation helped cause the social unrest that brought the republic in germany and led to the third right and that still casts a long shadow over european monetary policy. draghi is not just trying to save the economy. he has to prove the eurozone could be a force for good and not just a wrecking ball especially in a moment when the european parl am has a big block of ultra far right-wing members that make the illusion more pertinent than ever. i think this time draghi's efforts will work and while i have tremendous faith in what he's doing, the fact is no matter what the central bank ask, it makes europe such a tough place to invest in, and it's coming out of a great recession in part because we started ours earlier and they were totally blindsided initially. ben bernanke, former fed chief saved the day in the u.s. and jean claude trichet, o

. >>> super mario, his nickname today, mario draghi making an unprecedented move.t was that move? he cut the banks' interest rates on deposits to to minus one-tenh of a percent. it means if you want to park your money in an account at the bank, you have to pay the bank to do so, and the wangs have to pay -- the banks have to pay to allow that to happen. the ecb is the first ever to have a negative interest rate. it obviously believes it will stimulate markets. stimulating our markets, but what does it mean for the eurozone and, more importantly, your money and how your money reacts? no one more qualified to talk about this than the man who authored a widely-followed economic formula on interest rates known as the taylor rule. the taylor rule is a formula used basically a few basic calculations to explain how much interest rates could change based on deviations in inflation and economic flak. it's a lot of fancy words to explain something simple. we welcome him to the show, joining me now in a fox business exclusive, john tailor, hoover senior fellow -- taylor. a st

you can thank mario draghi for today's stock market records.investors bought up stocks after european central bank president mario draghi announced early this morning a batch of stimulus measures to boost europe's economy and to encourage banks to lend more in the

much formulating what is forward guidance mario draghi style. it doesn't exist anymore. i tell you things are going to last forever. draghi in the telegraph article over the weekend refers to the recovery as being weak, fragile, and uneven. he has indicated rates will remain low for at least two and a half years because he has prolonged the time over which he is going to provide finance. >> he borrows money and then has targeted long-term loans which will last for years. time.for a long that's the message. >> they are at a different moment in the cycle in europe than the u.s.. >> thank you very much for the latest on those pmi numbers. we are going to look for a measure of how the euro zone economy is doing. we start with france. then we get germany and the eurozone as a whole. we will keep an eye on that and alstom as well. >> trying to seal the deal as the bidding war draws to a close. anna is with us next. see you tomorrow. >> welcome to on the move. we are moments away from the start of equity trading. china's latest reading topped estimates. elliott gotkine, manus cr

and ecb president mario draghi will also be speaking next week. that is also something to watch out for. what will the ecb do again in order to support the economy in euro land? >> now let's pull up the market numbers for you. the dax is up slightly, and the euro stoxx down .17%. let's see what the euro is doing -- trading up. $1.36, and the dow jones down .25%. >> the german government has canceled a contract with u.s. telecommunications firm verizon. >> the german interior ministry says it has done so because it is concerned about links between foreign companies and intelligence agencies. >> the cancellation comes after documents leaked last year by former nsa contractor edward snowden showed verizon was forced to provide customer records to u.s. agencies. the interior ministry has announced deutsche telekom will now become the government's official internet service provider starting next year. when we come back, a dire situation in iraq. >> plus, we will have some group stage >> and welcome back. iraq's prime minister says his country will atte

so at the end, mario draghi did -- i think he's a super, you know, central banker. problem, he convinced the bund bank. i say jurassic park, you know, they're fighting something that doesn't exist anymore. we're in the deflation risk. that's the real problem. >> if you could sit down at that table with them, what would you be saying to them? what do they need to do? >> we have to solve the problem of jobs. >> how? >> created 50 million of unemployed people. >> how? >> change the parameter 3%, take away the infrastructure costs and investments and make a huge investment in infrastructure. all around europe. i think italy can become the florida of europe infrastructure, ports, transportations, energy that, you know. this is -- >> you're saying blow out the deficits again, spend more again. >> absolutely. there's no way. qe is there. if there's no qe, we're going to go into inflation. the big changes that france is falling into the populist hands. it's not anti-euro. it's anti-this kind of euro. i'm more in the position of the uk. should have another vision. this is th

will mario draghi help incentivize lending to smaller busisses? rate negative?e euro trading at oe dollar 3629. get more of an idea of where the euro is compared to the dollar. the aussie dollar currently trading lower. it is all about housing. have seen house prices also falling to the most in almost five and a half years. the aussie dollar is currently off. copper, it's about the chinese manufacturing data. 50.8, driving up metals. let's have a look at what it is doing with european equities. they are likely to open higher. the last was $64 trillion. the global value of stocks was a record high last month. currently we are starting june in the green. imilar gains in the u.k. ireland still in the red. let's have a look at industry groups. i am thinking miners might be higher on the back of the manufacturing data. if we're going to be playing ball this morning. an update i am sure mining will still be up today. >> we will go to technology a little later. what islk about happening with russia and ukraine. talks continuing. talks taking place in brussels. conflict

mario draghi said he is ready to cut. is ready toated he cut.eyed at the beginning of march, said a rate cut or cuts are coming. that is the -- before we got euro area inflation of 0.5%. that is the boring part. the interesting part is, we were -- two to to bankers bankers. off the record. they are discussing that they are going to do. they said they'll talking about basisg rates by 10-15 points. we can see druggie -- mario draghi reiterated commitment. >> they say it will be about the forward guidance. what they tell us they might do. i want to talk to the four economists who think the ecb will not do anything. on the phone. >> on the move is next. blumenthal will be talking to the program from heathrow. we will be back tomorrow. see you again. >> you again. ♪ . >> welcome to "on the move" just moments away from the market open. investors are said to trade this morning on tesco's trouble. let's start with you. >> he hasn't seen a sales drop like the one they just announced in his 40 years at the company. the saving grace was a little better tha

ecb head mario draghi, who put rates -- >> just amazing today. a -10 basisut it, point deposit rate. >> you pay them to take your money. >> it is like a penalty. money,we don't want your we will penalize you for it. >> what else? >> economic data in the u.s. unemployment, first friday of the month, that means jobs. bloombergyrolls -- best for accuracy is with us today. consumer credit will be coming out. a couple of earnings ash really just one. joseph a bank. go into the store, get one free. that is joseph a bank, right? >> like by five, get one free. a serious note, today is the 70th anniversary of d-day. president obama finished making the remarks at the ceremony. that is a live shot you are looking at. with so much to talk about. >> the cemetery started two days after that he 44, later on. you talk about on the unknown atd -- there are 307 unknown this american cemetery. one person from world war i, president roosevelt's son is from world war i. everyone else from world war ii. >> have you been there? >> i have not been there. i did not get t

maybe mario draghi is starting to see the stimulus filtering in for the euro.look at the stock six under. up 1/10 of a percent. health care is winning out. let's have a look at a couple of the key movers. it is all about particular names. -- up by almost 3%. china telecom is pushing near field communication. paying for coffee by your mobile phone. makes the simco cards that you put in those phones. bank of ireland down 4%. wilbur ross is exiting that trade. 1.8 billion shares going on sale. euro in terms of value. by 5%. off look out for the platinum miners. south africa. still no consensus. >> thank you. names from the video gaming world are gathering for the annual electronic entertainment asked oh. -- entertainment expo. let's take a look at the tech trends in europe. let's bring in milo. he is a tech and media rights are. writer. i had a guy earlier on from the body and he was raging about how great the european gaming story is. how european tech is really becoming resurgence. you are less convinced about the european tech story. a slightly different issue

the blockbuster announcement from mario draghi and the ecb. we will get mohamed's take.obama on the far left. russian president vladimir putin on the far right. they were at a lunch in normandy in remembrance of the 70th anniversary of d-day. the white house says they had an informal conversation at the 15nch, lasting around 10 to minutes. we'll bring you the details of the talk as soon as we get them. ♪ >> time for the global outlook, andbloomberg view columnist allianz advisor mohamed el-erian is back with me. before the jobs data that today, the european central bank yesterday ratcheted down interest rates with the deposit ranks -- rates in the negative. all of this historic for the ecb, but you worry it will not be sufficient. >> it was historic, and precedent, not only in the choice of individual tools that the ecb ended up using, but also the package approach. they have a bit of everything except for qe. >> yeah. >> historically been, and the equity and bond market reacted accordingly, but keep an eye on the currency market. munch --did not budge much. there is a s

mario draghi will announce some kind of stimulus, everyone thinks, for the european union area, the eurozone area, but the question is will it be enough? either way you will see volatility. you will see bond yields move a lot. the u.s.d between yield and the german yield has widened tremendously because the german yield has fallen so much in anticipation of what mario draghi is going to do, and that, as investors adjust to what he does, why have a much greater impact than adp. we will wait till friday to see the jobs report. we also get trades today, and that 8:30 a.m., it is expected to be unchanged, but it could be a sign of good news if it is that we have bought more imports because the economy is getting better. i will take that one apart. >> we will. thank you, michael mckee. 10,000 small businesses program, was set up for small businesses and to teach entrepreneurs the complexities of running the company. obergblankfein and mike spoke to stephanie ruhle -- mike spoke to stephanie ruhle about the program and how entrepreneurs can help everyone out. >> the job creation that comes out of

everybody continues to talk about the ecb and mario draghi.'t think there's any way to deliver because there's nothing to deliver. what are they going to do, what type of program? it's going to be so complex to think it will be announced thursday morning. it's hard to swallow. we'll see how the markets look. right now it seems as though a little bit of equity pressure, a little bit of selling pressure in the fixed income markets as well. but, we're only talking a small amount. look at ten-year, it 2.55, 2.56, the pattern holds. the stair caste. the volume isn't huge but steady. if you open the chart up we're still going to test that breakout. you see it on the far left. 2.57 from february, three weeks ago broke through, traded to our lowest yield close at 2.44 and here we sit. boon yields you can see they've come up a bit as well. here's the catch. looking at spanish ten-year or italian ten year, look at the charts. they reversed but no more. pretty much back on the historic low yields. some cases for centuries as deutsch bank research has dic

mario draghi. his message, we are not finished yet. what should be next?o speak on the program. i was calling for a long with us on the other ecb people who were there, ramping up the purchases. the bank of england and ecb put up a practical -- about two weeks ago. there is no reason that cannot start a on that in the next couple of months. the plumbing, the supply is in place and the plumbing is largely in place. draghi mentioned about wanting to make a difference between simple derivatives and complex. it is constructed anyway. a lot of the plumbing is in place but they have to draw up supply. that would not drum it up until they turn it on. that is the next thing. all this back-and-forth about if they would do qe. i think the answer is, they are not going to. when some people listen to this discussion, they wonder why we are moving back to the areas that are too complex and too opec. nobody understands. , that willrnment distort the market. why would we want to move back? >> i think there are two reasons. first, security does not have to be complex. the

president mario draghi was quoted by the wall street journal as saying quote are we finished question mark the answer is no period if we if need be within our mandate we aren't finished here now that's about as clear cut as you could possibly make it obviously more easy to follow and this is just a first step so here's the question is this move a good thing well my colleague edward harrison says no not at all now for one thing the negative deposit rate is a tax but he also wrote in a post on his blog credit write down this morning quote these c b has been forced into this course of action by circumstance the policy stance in europe is backloaded austerity and internal devaluation is deflationary by design with fiscal forward his hands tied monetary policy is the only game in town and the mandate compels them to act because the e.c.b. wants to prevent a debt deflation it has been forced to act preemptively with prices falling near deflationary levels euro zone wide so bottom line the crisis in europe is not over not by a long shot. to the e.c.b. announcement thursday it seems like mone