we know mario draghi is concerned about doing too much as far as draghi is concerned.ad yellen warning about the potential of build up risks. what's your take? how much caution should there be coming from investors? >> you're starting to see the rotation. you're seeing growth back to value. cash levels on part followos are near a 2 1/2 year high. you're starting to see it come into markets. what's interesting to note, and this is specifically noted by yellen was she said expectations with volatility are very low. and if you look at the swings in the market, let's talk about the s&p yesterday, the swing in the market was as little as 0.21%. and it's the second smallest swing in markets since 1993. >> the dow was 37 points, wasn't it, the daily range on the dow yesterday. having said that, we still didn't manage to ship above 17k yesterday. do you think we get that when we get the nonfarm payroll numbers, expecting a bigger number even from what we got on the adps yesterday. >> you do see greed over-shadowing. and people are too worried about missing out rather than all

i did ask what he thought about mario draghi and what he thought mario draghi should be doing and abouttes into negative territory. draghi he is confident will take all the right steps. for more, i want to bring in manus cranny. tell us about what we are expecting from draghi. >> i think the market wants a little bit more clarity. hopefully a little more detail. whether they have had enough time to put in place, how are you going to dish out 400 billion euros. i think by telling the market we are making big steps towards nirvana, that is a form of quantitive easing expected by , are you making progress towards that? where are we on that agenda? communication is an incredibly difficult subject. he is muddying the waters as far as i am concerned. more or less,es, where done. that is the message take away from that. june 21, the expansion of unlimited cash is a signal of the ration of how long the rates are going to stay low for. we in the zero bind corridor? that is the important thing. >> what does the market thing? and --man's to tom keene keene, wheretom the market is trading short int

that was a dovish mario draghi.s were his last line of defense and stead he will stay in the job. there was some talk that he was getting frustrated in frankfurt. and he has source brushed them aside. the big thing off the back of the ecb measures as we have a banks.for the you have cheap funding. what are you going to do with them? a lot of people would be sent to: say they will do what they did those co-years ago. >> he will not get a return on equity. >> two years ago, you could get six or 7%. now, you cannot. the other side, if there's going to be used for bank lending, there has to be demand. right now, there is not. picks up in the second half of this year, but that is not guaranteed. elsewhere, you need some fundamental demand. isthe assumption is there 400 billion on offer. that will ultimately get into the economy, be loaned out to companies and households. after twoo happen years. if they do not, they have to hand a money back. >> they have a little bit of time. most people would like to see the banks lend

mario draghi will speak in the u.s. releases its jobs report. manus cranny has around him. t's kick it off with draghi. more detail on how some of the previously announced policies are going to be enacted? >> absolutely. it is no longer a discussion about rates. it is a discussion about giving confidence. how long will rates remain in the zero targets own? zone?target how confident can they be that the ecb is making confident steps towards q.e., which is what everybody is expecting and demanding. it is about rates. where are they? lending. t-l-t-l-o. why would banks take long-term money from the ecb? they can borrow unlimited amounts of money. what is the incentive to take that $400 billion from the european central bank. i think mario draghi is in listening mode. his last message to the market -- for all practical purposes, we have reached the lower -- and they have stayed low longer than forcing. june 21. well, extension is unlimited cash is a signal that the duration of rates. there is a little bit of distraction in terms of what he means. lend money for four years. and y

mario draghi reassured investors rates will stay low. ecb ome time, the president's comments came as they left their rates at record lows. >> let's start with him. straight to the sound of bullets -- soundbites. here he is. rates key ecb interest will remain at the present levels for an extended. -- extended period of time. >> those of the words that move the markets. reassuring investors they will stay low for a long time. that is a good message to send out, as he pumps money. money.e going to pump pumping money to the banks. but there is a bit of a catch. he said and affected the pumping of cash will boost credit supply and inflation. their goal is to percent inflation. -- 2% inflation. that has been an issue so far. benchmarks not so high on moneylending. take up-- the banks can to one trillion euros. they can access and hold it for four years, if they maintain or increase the size of their -- which in the u.k., they are not doing that. they cut rates. the banks do not help the mortgage rates go down. that is the concern. mario draghi

. >> so mario draghi does not need to do more?> at least not for daimler. >> the starting price, 11,000 euros. they have lost a lot of money on the smart brand. the growth of small cars expected to be 35%, up to 6.2 million units. the four x four is six centimeters shorter than the fiat. when you put three of these in a line, that is the difference between the goal line and the penalty kick. i try to do that for mark barton. he would be able to understand that. the two door, you can fit four of them between you and the goal. anna? >> fighting talk, hans. somewhere there are photos of me as a goalkeeper in the football -- soccer game. i will not be sharing those. let's get back to much more serious issues. while this event was taking place, the u.s. and the eu were announcing sanctions. to be worriedng about how this will have an effect on their business? >> officially no. on line is they will execute their plan. what he said on russian is that the important thing is that they are growing in terms of market share. >> so far this ye

put in the mario draghi terms of lending. what he is saying is you guys who are deleveraging, if you stop that, we will give you a little bit more loans. if you change your mind and begin to consider what you are doing, we will help you more. he is putting a floor. he is tied to put a brake on the deleveraging move. that is very important in terms of that. was quite optimistic in terms of healthy banks. inand particularly -- particular, giving the structure, the problem is -- this is for all banks, not just the weakest of them. he was with merkel last night. i don't know whether there is anything in that. euro-dollar. if we look at the today chart, look at that. down the euro went. i went -- that had to do with the jobs report. he mentioned to the exchange rate twice. that is a major problem. bank presidenthe at the same conference? what was his tone? >> what do you think it was? lindenbergmberg -- ndeberg bank is hawkish. >> they should not delay normalization. monetary policy has done its part. he is keen on price stability

mario draghi has appeared before the european parliament.mors that he was getting ready to step down as head of the central bank. ecb.will stay at the all the rumors of a contrary coming from some interested parties perhaps are unfounded. >> let's get back to the farnborough air show. airbus dominated the first day with $21 billion in sales. the deals give airbus an early lead. rollings tally coming in at about $7.7 billion. could going fight back with more deal announcements today? expecting what are we from day two of the show, anna? >> we are expecting that boeing might have a bit of a fight back today. it could be leasing companies that we need to watch out for. day one really did go to airbus. with the headlines from airbus was the launch of the 8330 neo- making a a330neo, more energy-efficient. today we are looking out for the leasing companies in terms of bowling for sure. people familiar with the situation is saying that we need to watch out for these leasing businesses, in particular air lease and boc aviation. are we going to see b

mario draghi has his conference. failed bid for alstom. ryan chilcote has the latest on the truce talks between ukraine and russia. coming up in just under one earningse, we get since a high retailer went public. we will be the first to talk to jim mccarthy. and then we are joined by the director general of the confederation of british industry. he says that uk's continued membership in the eu is vital for its economic future. 9:00, we'll have kjos.r guest, bjoern draghi speaks. we get the u.s. report as well. i'm joined by manus cranny for more. what are you expecting from draghi after last month's extensive measures question mark -- measures? >> clarity. we have moved on. how low will rates go? how long will rates stay low? issue is the growth economy. how are you going to do it? how are you going to measure the effectiveness in the real economy? has managed to muddy the waters. we have reached the lower wind. at least for rates, but possibly for lower than originally foreseen. june 21, the extension of cash for all my friends. it is a s

mario draghi is repeating his pledge.keep interest rates low while the central bank tries to emulate the economy. mario draghi is speaking and we will monitor his remarks and remind you of that so you can watch it on your live channel on our free ipad app. back to one of our top stories this morning, the jobs report, which shows unemployment in june was much better than expected. the jobless rate to a six-year low. mike mckee is joining me here it also, peter cook, who is outside the labor department. peter, put all the data in context. what we heard from janet yellen yesterday of the fed, where she said, look, the central bank monetary policy will only do so much for the economy. classless she was talking about their is that monetary policy she argued cannot be used to foster financial responsibility. she said it is to remain focused on the unemployment situation as well as ice stability. she learned in this report is that the labor market is improving. we have got more evidence. than00 jobs, much better 215,000. the une

then you have the mario draghi headlines as well.that for you on bloomberg radio and bloomberg television. >> that is the morning brief. >> i have the company news for you. lululemon is talking about taking the company private according to "the wall street journal." chip wilson has been talking to private equity firms and at last month pots annual meeting he said he was not happy with the direction set by lululemon's board. siemens wants to catch in -- to cash in on the natural gas boom. he wants to lock in long-term service contracts. target has a request for customers -- please leave your guns at home, even if local laws let you carry them in our stores. texas guns right group -- texas gun rights groups have pictures carrying guns through their stores. steel, jobs day, alix brent crude down from the 114 level. have we achieved escape velocity? it is the fourth of july, an america divided between haves and have-nots. that is not news. what is news is the entrenched anxiety of a part-time america. no one has been a greater voice on t

at any price except we're going to pay you know a payday lender to buy a ham sandwich meanwhile mario draghi and his buddies in the e.c. big whenever they need an extra million two million ten million half a trillion dollars they just printed up but it just goes to them specifically directly it doesn't go into the system as a whole doesn't create monetary stimulus doesn't create economic activity doesn't create jobs doesn't create wage growth doesn't create society as we know it or is to no it just creates a platonic procedure even by whole cost provoking money printing shysters like mario draggy who like other bankers of the past have done similar things ended up. in a not very friendly place where you talk about most of the population having to go to a payday lender to buy a ham sandwich well the actual bankers in this economy of europe who are celebrating this trillion dollars free lunch from mario draghi here's alan mcquaid he's the chief economist at merion bank in dublin and he says this quote the take up should be large the money is cheap and banks should feel no stigma about acceptin

mario draghi dismissed rumors that he is planning to step down.nd i will stay in the ecb and all of the rumors to the contrary are coming from interested parties, perhaps are unfounded. message, loud and clear, you are going nowhere. the israeli cabinet has accepted a cease-fire proposed by egypt. the agreement went into effect in 9:00 local time. the decision came after israel issued orders to 38,000 reservists for a possible ground invasion. government said russian government -- russian forces may have shot down one of the airplanes. the ukrainian defense minister said the plane was shot down. he was also allegedly hit front out as you'd that showed it cannot reach. -- davidiam hague cameron shakes up his camera and -- cabinet. he is seeking to promote women and new faces in his party. looks like window dressing. >> sort of window dressing. if you look at the timing, it is interesting. when you talk to political observers, the idea is to refresh the cabinet and put younger people into government, more women into government, and have this generat

i think it is fine. >> mario draghi does not need to do more?have lost 3 billion in the last few years. they do see huge growth in the small cars. 6.2 million vehicles. daimler has made some other bets in the past. sponsoring the german national team. he was pretty pleased with that investment. >> nothing which would top the german national team. european auto sales out this morning, up 4.2%. 10 straight months of increased sales. it only means that you are denting a lot of cars when you are parking them. i am not buying your postage stamp argument. this is our next package, anna edwards parking in london. >> you do not want to take on somebody from london on their ability to park. it is a fine art. to german businesses wanting boast about their connections to the german football team. sap was doing it earlier. brilliant. buber has expanded into hong kong -- uber has expanded into hong kong. >> hong kong is a stylish city. people express themselves through fashion. they go to nice restaurants and they have a choice in a most everything you do in

mario draghi comes to london tonight to deliver a speech.gine he will be looking at that as closely as you guys at home. this one is staying stubbornly high. john.nk so much, let's get you the top headlines thanks so much, john. let's get you the top headlines. israel has launched its biggest offensive in the gaza strip in years. it an army spokesman says hamas has to pay for rocket attacks on israel. may settle a probe as early as next week. the new york times is reporting the deal figure could be $7 billion. cupil is out of the world -- suffering a 7-1 defeat. it is the biggest ever loss in the knockout round. germany will take on the winner of the argentina-netherlands match. >> i am rooting for argentina because i like their stakes. let's turn to the airline industry. louvre tom'sa -- fthansa. you've been watching the industry for three decades? you have identified one of the the airline asr transfer traffic. explain to the uninitiated what transfer traffic is. and why it is a problem. >> it is their business. frankfurt hobbit at and mun

martin or jogging -- say mario draghi.d never advise criminal activity, that is what i want to listen to. for theare you thinking final, what is the mood in germany now? what's the strategy? worried, the strategy is to rack up goals. only pointoal, the you need to win in tennis is the last one. soccer is a little different. when you look at the productivity of this german team, the productivity of the german economy hums along, we know that. it has been a remarkably productive goal starring team -- goalscoring team. productivity on the german side. look at their shots on goal, they have been efficient. i will feel bad for germany if they don't win because they feel like they deserve this one. do they know how to celebrate or are they worried it will be too nationalistic? >> have you talked about the some producers are hoping -- what does berlin look like, where's the chance to watch this game? viewer a mile outside the brandenburg gate. it looks like a giant drive-in theater. the one thing you do not want to do is try to g

what mario draghi wants.want to see this week dollar because it doesn't have his overall situation on his currency. >> these are bloomberg top headlines. bnp will pay an almost $9 billion fine. italy takes over the eu's rotating presidency today. prime minister matteo renzi is expected to use the presidency to emphasize growth over austerity. he gives his views on what an italian presidency means for europe. >> is a great opportunity for europe to turn the page. i think there has to be a fundamental reform of the european agenda. i think all of europe needs to look at a different future. where been stuck in a lot of rhetoric. i think we need to move it on and renzi will do it. forces haveecurity carried out airstrikes in the gaza strip after the bodies of three missing teenagers were found in the west bank. israel believes its teenagers were kidnapped by members of the palestinian militant group. prime minister benjamin netanyahu says hamas is responsible. since marka year carney took charge of the bank of en

last month was the big meeting when all sorts of measures were announced by mario draghi. w soon, given that inflation is at 0.5% and manufacturing is hardly picking up and unemployment remains at 11.6%, how soon before further measures should and will be considered by mr. draghi and his colleagues? >> we might have to wait quite a long time. i don't think the ecb feels as pressured as the market think the ecb is feeling into taking further action. probably the ecb is taking a broad view of what is going on in europe at the moment. it is looking at some countries where the recovery does seem to be being initiated. in spain, numbers are coming out -- [indiscernible] absolutely right. the countries where there are problems, for instance in france, that is more structural. i suspect the ecb doesn't feel there is absolute imperative to take further action. the problems are much more deep-seated than simply small monetary policy actions. i certainly don't think the full scale quantitative easing would be particularly effective within the eurozone. there would be a risk for any l

system of this cancer of the marriott tragedies of the world well here you have a situation that mario draghi is addressing and just like in the u.s. and harvard university looking at this colony collapse disorder mario dragon the central bankers are looking at banking collapse disorder and they see this banking collapse and rather than stop the source of the. the pesticides the toxins of the derivatives going into the system rather than do that they come up with the equivalent of these robo bees which is you know printing rapidly more and more money to paper over all of the fraud that has caused the banking collapse in disorder that's exactly right i mean but somehow the universe as a way of karmically dealing with shyster bankers whether it's nine eleven or recent health problem the suicides of these bankers end up having a crisis of conscience and dozens of them have committed suicide while mariel draggy commits suicide as a crisis of conscience now that he ever understands the whole of cost provoking perhaps we can only hope one of the things about this colony collapse disorder which they

think you can really compete with mario draghi, can you? the dax down by over 3% right now.the most since may of last year. it is not pretty. they have cut their 2014 forecast. the market reassesses the valuation. deutsche bank, not all bad news for germany. you have got the bank stock up by over 1%. have gone from overweight to neutral. 33 euros. we are at 25 right now. shire, this is the one everybody is talking about. they want a home where they can get a lower tax rate. seems to be the theme for most of these u.s. companies. acquisition because of tax reasons. higher foris 48% shire than when they first approached the company. will it take a hit? seems to be. >> ok, thanks. those are three stocks. time for some top headlines. israel launched its largest offensive in the gaza strip in nearly two years. assault out an aerial on more than 150 targets. 23 palestinians died. hasrmy spokesman said hamas to pay for rocket attacks on israel. with federal prosecutors. thatew york times reports the deal could be as much as $7 billion. brazil, as if you hadn't heard, they are out o

mario draghi, will he talk more in terms of targeted long-term offerings of cash. citigroup and j.p. morgan will come out with earnings. i think it's a reflection if you take yourself to the asian session. theas transferred nicely to european trading session. in the u.k. you're going to get jobs list numbers. mark carney is going to be in front of the treasury select committee. ndt going after russell and stover in the u.s. we don't know what price they have paid, but the deal will take them up the stakes in terms of the biggest u.s. boxed chocolate manufacturer. we get the confirmation they are prepared to back the deal offered at a price of 53 pounds 20 pence. tesco has an upgrade from cantor they are trading at 282.35. another thing to decide they are coming out with some of their views. they say they have reached an inflection point from the data last week. they are making big calls here. they are talking about the norwegian krone are and the swedish krona are. 8.9 by the end of the year. this in theory will be one of the stronger performances for the rest of t

mario draghi might disagree. what can he do to push this one lower?l they rely on the federal reserve to voice their concerns in the federal reserve minutes released this evening? look at the inflation data taking higher and saying maybe we have got to start putting up rates? janet yellen called the inflation data just noise. i think mr. fischer may well agree with her and you could see that come out in the minutes. in the jobs numbers this week, that one could be the one to push this one lower. that is what mario draghi wants. >> it is interesting to see how the market has priced it in over the last couple of years -- couple of days. next, we will see what is happening in china. ♪ >> reason the top headlines. -- these of the top headlines. aerial assaults. killing 23 palestinians. has to pay for the rocket attacks on israel. with federal prosecutors next week. the near times reports that the deal could involve a $7 billion fine. the united states and china have kicked off the annual strategic and economic talks. the u.s. treasury secretary and secret

mario draghi says, we are not finished. the logical response to that is, what's next? his response is it is the asset purchase program, something they carry on over the next few months. is there a plan, a risk of something you're not willing to execute on? takes us nicely onto markets and the preoccupation with portugal. is a slightly long and winding story. the two bank in portugal are 25% owned by his spirit so financial international.to short termissed some debt payment and this literally was like taking a firecracker and slamming it into the middle of a group of people in a pub. literally, yesterday the markets reacted. markets, peripheral bond yields rising. there is how portugal finished, down on the day. the banks around europe, the lows of 2014 and it is contagion going back to what i said to you. bank equals potential trouble. i should just actually say the santo has put a barrier around the company about $1.18 billion. to need anygoing assistance. it's permeating as far as brazil. the bonds of this bank and brazil are actually falling. .ou're seeing a manifes

mario draghi said the ecb will keep interest rates low for some time still, but he also said the ecb stands ready to do more if necessary. >> the council is unanimous in its commitment to also be using unconventional instruments to meet its mandate. should it become necessary to tother address this prolonged time of low inflation. havewmakers in germany voted for it nationwide minimum wage. most -- the vote in parliament followed a heated debate. companies have warned this could lead to job cuts. even chancellor angela merkel has expressed concerns it will undermine germany's competitiveness. the social democrat party has insisted saying that a nationwide minimum wage will boost fairness. the warm-up is already in full swing here in france ahead of the world cup quarterfinals. prince is facing off with germany on friday. earlier we talked about how duringf beer has spiked the cup. sales of televisions have also spiked. rise andes are on the manufactures have the world cup to thank. in the months leading up to the game, one out of 10 french have opted for an upgrade. the formula has w

. >> how have you incorporated mario draghi's stimulus efforts last month into your numbers as we push through the second half of this year, if tall? >> no, i think it is very early days. obviously, both measures end up being implemented yet. the first of these liquidity operations will be carried out in september. there's been a minor asset on sentiment and in exchange rates and in bond market. but that has been also relatively small for now. what i think is that this measure seems to go in the right direct. they appear to be able to provide a stimulus. especially in the southern european countries from spain to italy. so it's helpful at this stage, but it's not been implemented yet. and it's likely to take three or four quarters. >> you mentioned earlier that it's not about the divergent growth between the core european countries. it's about reformist and not reformists. if you go back, you were mentioning there as far as italy is concerned. how do you feel about the italian situation right now? >> well, i think italy is behind the curve relative to this group of reformists, the smal

there is mario draghi, mr. whatever-it-takes. ♪ >> good morning, everyone.bloomberg surveillance" all day today on bloomberg television. michael mckee sits down with a set of officials including philadelphia fed president charles plosser. he will do that at 10:00 a.m. today live from jackson hole, wyoming. this is "bloomberg surveillance." i am tom keene. with me scarlet fu and adam johnson. >> world markets rebounding from yesterday's portuguese plunge. the country's second-largest bank today says it does have aqua -- adequate capital. mario draghi has told us several times he will do what it takes. .ohn farrell joining us >> adam, you have hit the nail on the head. i come in this morning and nobody is asking anymore, we have seen markets fire today with a record low yield. it is very easy to call this an isolated event. markets wobble, we do not care about it. i have got two very big takeaways from yesterday -- one europe -- it is not all that at the moment. there was a phrase called the feedback loop, when every bank got in trouble. yesterday was a shock

. >>> ecb president mario draghi has assured the markets qe remains on the table. speaking before the european parliamentary committee, draghi reiterated that the ecb stands ready to act if the risk of low inflation increases. >> monetary policy stands, is and will remain a coccommodativ for an extended period of time. the council is unanimous in using other instruments, unconventional instruments if there is so that protracted the period of low inflation were to rise. >> janet yellen heads to council today to give part one of her semi annual position on policy. the senate banking committee is at 10:00 a.m. eastern. yellen is expected to stick close to the previous statement. yellen has repeatedly refused to specify when the fed is likely to start hiking rates. tim of the s&p indices joins me now. we just laid out a number of risks and ended by talking about central bankers and how seemingly they the end continued to underpin the markets. we talk about complacency in the markets right now and why we don't see follow vilt picking up. but you turn it on its head and

if focus today will be the european central bank policy meeting and what president mario draghi will have to say afterwards. in other markets in the asia-pacific region. the kospi is trading lower by .25%. in shanghai the key index is trading higher by a touch. >>> the people at an arm of toshiba have found fewer opportunities at home so they are look to europe to sell some of their nuclear technology. they are expected to win a $5 billion deal to build a plant in bulgaria. officials with toshiba's westinghouse subsidiary are expected to sign the contract to build the plant. it will generate enough electricity to power thousands of homes. the company is considering taking a stake in the firm that will operate the plant. all nuclear plants in japan are currently offline. managers of electronic forms have been look oversees. those at toshiba and hitachi have acquired power companies that plan to build power plants in britain. >>> japanese workers turn out products known around the world. but much of what they make is imported from abroad. steel from australia for . >>> geepg. i'm tavis

then no offense to your boy mario draghi. >> he's my boy now? >> janet yellen and the fed. we know qe will end in october. we've known that for a while. are we finally starting to come to grips for an investing world without the old fed pumping station? >> okay. well, okay. good point. good points on both sides i would counter but we have the perfect guys in place to make sense of all of this. let's bring in bob pisani, rick santelli, don't take sides. let's be objective. journalists over all of this. bob pisani, you know, i would say that maybe it's a little bit of everything. when you've got a market that is at or near all time high, right, it doesn't take much out there to upset the apple cart. >> this has a lot to do with valuations and bonds and stocks. some part of the market that i think are frankly silly. bonds can get over valued just like stock. i said all week. silly valuations and internet names as well as in some small cap tech names. i'm glad the russell is down. some people in the market are saying, hey, fellas, does this make a lot of sense to spend 150 time

mario draghi said he would do what it takes.our concern, apart from the portuguese bankers. ? >> we are still overweight europe. we have loosened the overweight a bit in favor of japan. as far as the euro zone is concerned, it shows that the crisis has really not been resolved. structural changes have not taken place because the debt -- what happened back then, what mario draghi said, he will do anything to safeguard europe, and i think that was enough for the markets changese job, and the have now taken place. although we do not think there will be an outbreak again of of the euroin 2010 financial crisis, the situation remains serious. >> set is the debt crisis over or not? on the surface, it is, but it actuality, it is not, so we have to brace ourselves for more to come, and i think policymakers atd to take a hard look whether the past policies have worked, but the ecb is most likely to expand quantitative possibly, and look at monetary easing for this. >> putting that into perspective, what are you advising your clients? are

>> the question is about whether mario draghi can do anything, in provided the fed has support but iteasury that organized the bailout for the bank, not the central bank. we will see how that plays out. sorry, make your point. >> at the end of next year, the ecb will have the authority. >> that was fast enough, back in two minutes. ♪ . . >> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> you are watching "market television.loomberg >> stephanie ruhle is off today. guys here on the desk talking about right now president obama. he has made going at it alone the theme to this year, signing more than executive actions to get around a gridlocked congress, but there is a cost to executive branch action. a republican-aligned group has seized on it. phil mattingly has an exclusive on their finding. >> that's right. much,illion -- that's how according to american action for him, has been spent so are this year of executive branch agencies. first, this is not a stunned the 40-plus executive actions the president has taken -- this

. >> some analysts say mario draghi was only able to calm the markets back in mid-2012 because the banking union was also being set up at the time. experts say together, they prevented the eurozone from collapsing. >> well, let's look at the market action, and european shares suffered a steep selloff on tuesday. our correspondent sent us this summary from the frankfurt stock exchange. >> the increase of the german dax above 10,000 points -- was it exaggerated? questions like this were the talk of the trading floor after the disappointing german economic data have been published. during the next few days and weeks, one company after the other will come out with second-quarter earnings reports. the news about a weakening german economy made investors extra nervous. shares in commerce bank -- commerzbank lost today due to reports that authorities in the united they have begun settlement talks with the bank over its dealings with countries blacklisted by the united states. >> we stay in frankfurt for a closer look at the tuesday numbers, and the dax was well off by nearly one point 4%, finishi

ecb president mario draghi will be addressing european parliament were he will likely announce another trillion dollars in support for european banks. just last week he said the european balance sheet likely to go up another 50%. there is plenty of sugar over there. >> the portuguese news continues to devolve. >> plenty of hope right now. here in u.s., no economic data but we should mention janet yellen will be addressing congress tomorrow. earnings today, 8:00, citigroup. scarlet will be all over that. >> we know second quarter trading revenue will probably be around 20% to 25% down. potential settlement with doj. >> $7 billion? >> that is the number circulating. >> two separate events. items of note, watch out midwest, there's a polar cortex coming your way. 40 degree temperatures at night, 60's in the day. >> 70 here, maybe. >> tom, you're looking very serious. trying to figure out which scarf to wear with your bow tie? >> there goes the gdp numbers. >> sorry. is how stupid this game is. >> we should point out, bastille day in france. their equivalent of july 4. >> let's get a data

was casting my mind back to of july in 2012 when mario draghi made that infamous speech.is willing to do whatever it takes to preserve the euro. believe me, it will be enough. >> it certainly wasn't as momentous. it was an infamous -- an intimate event. but last night, it was not about money policy. draghi got very political. there is a big debate in europe. one hand saying these guys need to focus on reforms. reggie saying mind your own -- renti saying mind your own business. mario draghi said these countries have got to speak to their reforms. there will be no fix ability. we have rules to honor. that is why we have this thing called credibility and it is very important. things,onetary side of unless you make reforms, our monetary policy is not going to work. if you open a business and it takes nine months to get the business up and running, how is a business going to get credit anyway? it does not matter what the us -- what the ecb does. at the eu level, maybe they could push these countries together to make reforms. there was a big push last night on the political sid

>> mario draghi thing does not surprise me. he single-handedly saved the euro two years ago.an understand that. on the sentiment on -- investor sentiment that echoes what i hear from investors when i talk to them. after your go europe look more attractive because yields were higher. hadave seen compressing, we spanish on yields falling and so no surprise that foreign investors say i do not get bad return and i would rather have to look elsewhere whether it is india or the u.s. >> we had yellen speaking trying to tackle her perception of where asset markets are in the u.s. they were saying certain asset classes were stretched. but now she is saying summer on the high side but generally valuations are not out of line with historical norms. do you agree the u.s. is still -- investors feel there is [inaudible] questionto the u.s. mark >> the u.s. has the best earth outlook create yellen is -- growth outlook. even u.s. bonds, u.s. treasury bonds are high-yielding bonds. compared to europe or japan. >> let's turn to asia. -- china. you questioned the validity of the data. we have a

the bundesbank versus mario draghi. re-accelerating and momentum is picking up again. france is under pressure. it is year two of recovery and the unemployment rate is staggering. the debate moves to a nudge better. it will beg in and on the german side. that would be next year. >> that is interesting and what is interesting is breaking out of the bottom range. chat on marketplace and the sentiment seems to be options and the rights to sell if it drops. will it hold? >> the market is short. >> yes. short on the euro. short on the euro. it is short on these numbers. >> thank you very much. we are going to stay with you. that is it. bloomberg television will continue and the anchor of that show is me. we will see you in a couple of minutes after the short break. do not change. >> me. >> committed to russia. unilever's ceo says he will not bow down business following pressure from the dutch. another company with exposure. basf. as one of its units partners with gas from. -- gazpromm. to u.s. lifts its flight ban israel's busiest airports. we will take you live to tel aviv

whether it's being operated by janet yellen or mario draghi none of it is actually going into creating a sustainable economy it's the same exact potato wedge whether it's from old or at a pizza chain you know it's the same thing just a different price well it's a derivative within a derivative within a freeze dried coffee within a chicken make nugget with a nonsensical balance sheet within a fraud within a central bank with then an overall collusion going on globally it's on other words it's a derivative of a derivative of. take a chicken nugget for example here you have a.

whether it's being operated by janet yellen or mario draghi none of it is actually going into creating a sustainable economy it's the same exact potato wedge whether it's from oldie or at a pizza chain you know it's the same thing just a different price quotes a derivative within a derivative within a freeze dried coffee within a chicken make nugget with a nonsensical balance sheet within a fraud with an.

we also wanted to get more details on mario draghi's efforts to get lending going into the economy. it sounds terribly complicated. walk us through the details. >> it is. two types of banks in the eurozone, those who are lending and those who are deleveraging. two clear pools. people who are maintaining, increasing lending, borrow some money. you will be able to keep the money for four years. i am calling this the new draghi put. given what is embedded, the program is attractive to bonds with a dynamic performance. this is the advice for all banks. >> that is for the strong. he is basically saying the banks that are deleveraging, reducing lending, stop. hit the pause button. if you slow down on your deleveraging and stabilize into 2015, you too can have money for four years. i think too that end, it is about addressing both of those. the people who are deleveraging, that is who he wants to stop lending. >> manus cranny, thanks so much. still to come, adm goes wild with what could be its biggest ever acquisition. more on that potential deal coming up later on "the pulse." ♪ above dow

that will be the concern, whether or not mario draghi has done enough.ally see him move on rates. it is all about qe and whether we can get the bank wants sheets -- notto some form of stability but good shape. that just now, but over the next six or seven months, particularly. things that we have not really seen at the forefront for europe. that is why everybody was so frightened that this could happen all over again. >> that is exactly right, angie. does your the part that comes with this. this current fiscal policy for the whole region is still very interesting. august the come having to integrate across him a different countries. the u.k., they certainly want to hold back on the amount of fiscal change they have there. germany wants a more security and regulation around. that was always going to be the case in the small countries, the periphery countries. they will always feel the strain first. hopefully doesn't go to spain. it is still a possibility, considering the massive debt you have in europe. there's nothing that -- that is another issue. all t

. >> if mario draghi goes to qe, what doestv -- that do for the euro?epending on how the market interpreted, the market will come down. future, wediate think the catalyst will be u.s. yield going higher. juckes on from socgen. his target is 1.32. what is yours? >> we are looking at 1.25. it is a lot more aggressive. our forecast for the u.s. 10-year is aggressive as well. it is predicated on the forecast. if it happens, you can guarantee volatility and yield differentials will be in favor of the dollar. >> has ubs wrought in the rate hike forecast since last week's jobs report? >> to be honest, it is quite aggressive already given where our federalization forecast is. we think markets are underpricing the strength of the u.s. economy right now. >> it looks like mark carney could be the first central banker to raise rates. >> we still think that will be the case. sterling sustain its current gains. we think it will top out around 1.73. having said that, we would be happy to be short euro sterling all the way. >> at the end of the year? >> back to 1.65. e

mario draghi is now pushing for q.e. precisely to try and be america or in the u.k.sun came by debasing visibly device in the euro in a sop to eurozone exports so two thousand and eight the global debt to g.d.p. was around three hundred ten percent today it stands at close to three hundred twenty percent debt to g.d.p. so despite all this talk of austerity despite all this talk of cleaning sub the situation the debt is actually higher now you quote in this article in the spectator never get a good look at a run up to the newsstand right now make andrew neil happy i think he's one of the publishers of the answer is the publishers affect yanto see we're helping. you say you quote professor michael dempster. he says that the rivet is the nerves that is the glue that ties all these global banks together this is my pick this is my my my my question i will eat up i'm writing a rose you say you say derivatives are now all about creating confusion to hide losses sounds like fraud so this is my big question of this interview all everything we've set up until now global banks

. >> and if you can find a market them, shorting them following mario draghi's statement where everybodythought plan a, and maybe that that it isasterisk up to you. with a lot ofait words and little action. whatever it takes never turned into anything. and lately it has been this qe, qe will be coming next time. there is going to be -- >> somebody did not get paid. >> sign that you need the ecb to step up and germany to back it. germany is going to have to come up with that neutralization and be softer than they have in the past. as they say this is the private creditors' problems, you run this risk of a cascading effect. >> it depends to the bondholders are. if they are in portugal, why would the germans go in and be interested in helping them? >> that is one of the problems, one of the interesting things as gone on,crisis has you see spain and italy, the percentage of foreign held bonds has been going up. mutual funds have been buying spain and italy. hedge funds. so it went from the height of the italian debt, it has moved into more global. doing thise people that you believe they don

ecb president mario draghi will be addressing european parliament were he will likely announce anotherdollars in support for european banks. just last week he said the european balance sheet likely to go up another 50%. there is plenty of sugar over there. >> the portuguese news continues to devolve. >> plenty of hope right now. here in u.s., no economic data but we should mention janet yellen will be addressing congress tomorrow.

whether it's being operated by janet yellen or mario draghi none of it is actually going into creating a sustainable economy it's the same exact potato wage whether it's from old or at a pizza chain you know it's the same thing just a different price well it's a derivative within a derivative within a freeze dried coffee with then a chicken make nugget within a nonsensical balance sheet within a fraud within a central bank with then an overall collusion going on globally so in other words it's a derivative of a derivative of chicken take a chicken nugget for example here you have a reconstituted to convey first then are shaped into something that you know is a nugget. and last i checked that chicken didn't have a piece on their body that you could call a nugget there's a leg away but not a nugget but there you have a chicken nugget it's really made out of reconstituted chicken or the hamburgers there are that pink slime but that's not enough markup for a fast food chain like dominoes they have to get derivatives from another place that sells cheap garbage to people and calls it food an