mario draghi hospitality and job. job.rio draghi's italian start your engines.ing to our viewers in europe. to those just waking up in the united states. i'm guy johnson. this is the "the pulse." the big story is the ecb. policymakers are in naples. are away from frankfurt, the headquarters of the ecb investors will be listening closely to a mario draghi has to say. >> good to see you come a guy. -- good to see you, guy. be?big can this program what is going to define how big the assets they can buy. that might move the dial slightly in terms of the assets they can buy. if you look at the distributed market, one abs billion euros in 2013 issuance. >> the idea of this plan is that he is going to take bundled loans off the bank balance sheets and afford them the ability to put more money out into a sector that we have about its desire or willingness to take money on anyway. onto theerring risk ecb balance sheet. there was going to be a lot of opposition down in naples today to what they try to introduce. >> it is a very difficult job mario draghi is trying to deal

a lot of focus on what mario draghi will unveil. shares in rocket internet fell 14% in their market debut, buts has recovered some of their value, trading right now at 41.44. its issue price was 42.50. it was rocket internet, one of the big eft listings this year and a german company in focus today. >>> meanwhile, online retailer zolando has lost more than 5% of its value in today's session. currently trading at 20..15. this after a stellar listing in yesterday's trade. >>> and the hunt for red october is very much on. the u.s. market having their worst start to october for three years. and europe has taken a similar cue tonight. the stoxx 600 down 0.6%. let's have a look at individual markets. it's a pretty broad spread of weakness. the ftse 100 down 0.43%. germany down 0.5%. the weak manufacturing pmi data out of germany yesterday, france and italy down similar amounts. a lot eyes on mario draghi in naples later today. will he give the market more confidence that it obviously is needing? >> let's look at individual stocks. shares

reminder, you can watch mario draghi's news conference online.e will of course bring you all the headlines as they roll across the ticker. ebola after the cdc confirmed the first case of the deadly virus in the u.s. companies also boasting about a 3% decline on an index. here with me is the president and ceo of one of the top luxury hotel brands in the world and two properties underway in north africa. he also serves on the committee of world travel and tourism council. i want to ask you what you think about this. to be panicked about the ebola situation? >> it is absolutely wrong to be panicked. it is important to be well informed and understand that as bad as this is, it cannot the transmitted by airborne contact. bodily fluids come in contact with if and able. from that perspective, it is more difficult. travelers are pretty savvy these days heretravelers are pretty se days here at they do have a very good idea of what risks they may or may not face area i am hopeful good sense will prevail. it is really important for developed countries aroun

what are you expecting from mario draghi? e-mail us your thoughts or tweet us, world would it@cnbc.com. >>> happy birthday mr. president. coming up is the 39th president of the united states turns 90, cnbc's tonya brian meets jimmy carter. plus, you get some special birthday messages. >> we all do think of him and his legacy as one of such compassion and humanity and to continue to give all the great work that he does and to wish him a very happy birthday. >> an extremely happy birthday. >> i wish him every future of happiness and a great birthday. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us. >>> japan is joining the ipo party. the government selected nomura and jpmorgan to underwrite the post. we have the story live from tokyo. >> yes. a group what used to be a government entity holds around $120 billion in capital and the privatizatio

the ec president mario draghi -- the ecb president mario draghi. near september 2012 lows.e move is back in two minutes. stay with us. ♪ >> we will continue our coverage from the paris motor show. tom gibson reports. be the car of the future? citron hopes this year's futuristic concept offering will help boost sales. it is not even carry the manufacturers name, but it certainly makes a statement. >> trying to take on the established idea of premium. trying to do it in a french way. you are looking at an extremely over styled take on what we have become used to. any variety is good for the industry. >> it is certainly luxurious. >> they have a big job to be done. showing oft is a upmarket cars. it is a good intention to show where it is going in terms of the brand. >> concept models were said to make their debuts. one has to wonder favorable make it -- wonder if they will ever make it onto the road. >> you see them in a slightly form where the designers have been reined in. >> almost over. let's get a quick look at the markets this morning. lower across the board. the dax ob

>> i think a lot of it is mario draghi.has been saying forever, i can do my part, but when we have economies in europe that are calcified due to too much regulation, too many labor problems, they can't grow. i can't fix a problematic economy. i can fix monetary policy. so they've got to do their park. >> do you blame angela merkel then? >> i would blame the italians, the greeks, the portuguese. all of them. even the germans. blame all of them. but mario draghi also said price stability is his mandate. that works when inflation is happening and when deflation is happening. he's going to do what he needs to do. it just might be scary as we get to that needing to do point. >> i see you shaking your head, andrew. i want to say so everybody knows in terms of deflation, prices are 0.3% year on year. >> inflation has been on their target for 20 months. they have a problem. they have a big problem. if people don't understand inflation, very simple. why would i buy anything today if i know it's going to be cheaper next week? i won't

involved but maybe that changes as we finally see a proper return to a normal labor market. >> is mario draghiugh or too little for europe? >> he could do more but the more he does and the more the french and italian governments say we , marioed to reform draghi hasblinked. yearudget numbers for next came out but they can get away with it because they know that mario draghi cannot take the chance. >> the banks did not take the money which we learned two weeks ago. >> they may take more next time. that was the first one. the estimates were establishing the dark so we will see how it goes. i don't think the banking system is the problem in europe. they have deep structural problems that the ecb cannot fix. wolf fromn keep the the door but the french and italian governments are not reforming, the ecb is forced to do more. , you havegard to jobs said that history indicates we could get to f said-scaring fed-scaring level of job growth. millions of people part-time want to work full-time and those who have left the job market will come back in but in the meantime, they have to pay more. manufacturi

the european central bank president mario draghi will speak at the bookings institute in washington and he will be followed by stanley fischer due to speak at the same event. e-mail us your thoughts on what you think draghi and fisher will say about the economic recovery worldwide@cnbc.c worldwide@cnbc.com. >> and as you can see, european markets in the green today following the lead from the u.s. yesterday bouncing back from the weakness we had earlier in the week. the stocks 600 up 1%. the stoxx 50 up 1.2%. it's quite a comeback in european markets. we're back to a market where bad news yesterday, more dovish comments leads to good news in the markets. green across the board, the ftse 100 up 0.75%. germany up 1.5%. perhaps up 1%. italy up 1%, as well. you would think equities might sell off, but that hasn't happened. ten-year treasury yields, 2.3%. we saw both equity buying and bond buying over the last 24 hours. ten-year german bund has moved less despite having more macro data out in the last week. it's just below 0.9%, but record lows continue there. 2.3%, very, very low yields. pe

thank you, mario draghi. to put in scale what jon ferro is talking about, here's the latest move up in the greece-german spread. >> back at the crazy -- given the scope of what is happening right now, greece almost seems quaint. little greece and somehow they figure it out. now it is all of europe. >> what is the latest on to exit itsn bailout. that was responsible for some of the panic we saw yesterday. >> aggressive move higher in greek yields. we've moved higher by 300 basis points. greece wants to exit their bailout program early, against the wishes of some eurozone finance ministers. mainly for political reasons, they want to get a little bit more autonomy. the market is giving greece a warning. you want to exit the bailout program, we will push up yields on the 10 year by 95 basis points in a day. the market has a message for greece and they might have to think twice. >> jon ferro in london. >> with the european angle. i am more focused on europe than the u.s.. my assist area. and greeces bonds tanks, t

draghi,e the -- mario has found himself under more pressure. pledging to loosen monetary policies. at the same time, the german draghi saidister -- it was best to protect that the ecb will start raising rates by 2017. u.k.toric day for the party in the house of commons. he won the seat from the conservative party. and claimeddefected the seat for his new party and a by election yesterday. it puts more pressure on david cameron, who promised a referendum on eu membership by the end of 2017. the u.k. is set to start ebola screenings at airports. it comes with as to new cases are reported in eastern europe. the world health organization has warned the disease is now entrenched in west africa. chinese officials are set to meet with angela merkel. willuld this dish -- they discuss trade relations. we are joined by ryan chilcote. hard to understate the importance of china for germany. >> they have a massive delegation that gives you a sense of how important relationships with germany is. it's equally important for germany. if the eu is china's bigges

crude oil crumbled, investors fretted about slowing growth and mario draghi in washington signalled his worries about deflation. >> we are accountable to the european people for delivers price stability. which today means lifting inflation from its excessively low level and we'll do exactly that. >> here is the damage on wall street, it was thorough, the dow fall 309 points, the s&p off by 40. the industry was especially hard hit as the domestic oil prices closed below $86 a barrel for the first time since december of 2012, the crude dropped below 90 for the first time in two years. >> the issues dogging the market are essentially the same as what has been dogging it for the last several days. there is a collision between the slowing growth between the rest of the world and the debate between the feds should raise the interest rates, first, a slowdown in europe. german exports dropped 6% in august, the biggest drop since the financial crisis several years ago. the head of the european central bank, mario draghi again reiterated there could be no recovery in europe without structural and

>> thank you for breaking down the latest from mario draghi. want to bring in the founder and cio for london-based deca-capital. sky for 17n the years. can you believe that? welcome. such a treat to have you here. what do you think? >> i think they have a real problem. they have put out the fire and now they need to do proactive measures. as your colleague said, putting those measures into practice is really hard for them. there is a story saying they have put out programs to value abs. you never see that story from the fed. they don't say, by the way, we still have not seen the mechanics of how to do this. the ecb says a few things and they keep delaying it. , it is hardeflation to get out of it. the worry is that the ecb is moving way too slowly. >> these are fundamental problems. what does that mean? >> between now and the next meeting, you have another blackhole of news. markets will trade lower because they have not delivered and they are nowhere close to delivering and they will not deliver this year. the market knows that the abs buying

mario draghi got away with spending zero. talk is cheap in the market is disappointed when he finally decided to spend the money. the fed is saying that the stronger dollar is doing the job for them by slowing the economy down and it's deflationary and we are importing inflation from europe and japan. if they can save this will delay the next rate hike, we don't expect them to hike rates until the first quarter of 2016. the market is pricing that mid next year. >> ironically, japan may be ahead of europe now. they have been more aggressive on the monetary front. they are seeing signs of improved price movement. strong support to continue on the patties on and a lot will be learned in the next couple of months as they look at economic results to see if they can continue on their path of performing. >> they have to digest another consumption tax. what do you think mario draghi's next move is? got a european summit meeting coming up. i think there will be an entity for them tompetus react. aqr's at the banks and the stress tests

can mario draghi deliver? think since october 2, his disappointing performance at the press conference there will be the seachange. the previous week he was applauded because it meant more justifications for the ecb and more stimulus which would be great for italy. now he hits the equity market hard -- there are things he can do -- and he continually says, and is not just that elementary policy. all it can do is put in place conditions that make it less painful. >> i thought that press conference was really good because it was an emperors clothes moment. people haven't been asking the right questions. and so the right question started to be asked her it >> there would be more questions asked if they have the details, nothey could be informed -- good to be him but good in terms of markets recognizing that there has to be action. reputation has been built on a lot of words and not much action. and he is done a great job, but it's time for action. -- policy that's amusing is he is adamant about the balance sheet

xxx mario draghi says two voted against the plans to buy junk b paper while the president says the ecb is turning into europe's bad bank. xxx the hang seng opens sharply lower. demonstrations continue. hong kong's leader says there's no plan to clear out protesters. sdmroo the brazilian president said polls suggest she would win a second round run off. #. >> announcer: you're watching was was, bringing you business news from around the globe. # and it seems red october is over already. lots of green in europe today. largely, though, just a bounceback from yesterday's decline following the lack of ecb clarity on the action. we had just a 2% decline nearly from the dax for the day and a nearly 4% decline in the italian market. so what has bounced back the most? well, it's what declined most yesterday. the ledger was down yesterday on some ebola fears which has been led up by easyjet. and why are people going into money like that? perhaps it's what warren buffett told krnz yesterday. the more the market goes down, the more i like to buy. let's look at some individual stocks now. easy jet.

mario draghi's beach sands stocks down.ear their highest levels in almost six years. the talking about here, beginning of september. a lot has changed since then. the stocks 600 has fallen 11%. it is an correction territory. 3% yesterday. figures fall in three years. greece was down by more than 10%. it is in a bear market. it has fallen by more than 20% has -- as has portugal. that is the red circle. when mario draghi, the ecb resident stopped short of spelling out how many assets the ecb might buy to head off deflation. that day, european stocks plunged the most in 15 months. the stoxx 600 has fallen by 6%. the fear is there is a limit. whatever it takes thomas happened in july 2012. the stoxx 600 is up by 40% since then. the fear is maybe he will not do whatever it takes. maybe he will not allowed the big bazooka and by sovereign debt. volatility is rising as well since those june highs, since when the stoxx 600 was at its highest level in six years. those were the call must days for volatility in seven years. volatility

as the fed put an end to qe, would mario draghi cake up the backdrop?governor kuroda is certainly doing more of the heavy lifting now. let's bring in a special guest, global head of equities derivatives strategy at bnp paribas. thanks for coming in. busy, busy morning. let's start with the pension investment fund. no big surprises there. is this going to change anything for the fundamentals of the japanese economy? whack's it is not so much that it changes the fundamentals directly. this will be implemented over several years. because a lot of that money is targeted to the new 400 index, there is incentives to keep reproving -- improving return on equity. the government is also supporting that with tax changes. they support closing down lossmaking businesses and reallocating that capital, which is important. we get the fact that both of these announcements from the bank of japan probably isn't a coincidence. there is a lot of coordinated policy in japan. we could have had both of these announcements four months ago. the fact that we are getting them now

some people talk about pressure on mario draghi. on the german production. >> a comes after german factory orders plunged. dataays of disappointing from the supposedly engine of economy. let's talk about the big corporate story today. profit has slumped for the world's biggest maker of smartphones. it is interesting. the results were disappointing but investors are not looking at them. quarter since 2009. they had so many headwinds. we saw phones facing competition. apple with their biggest screens. you have competition from the higher-end phones and these entries in china. they are pretty high-end but much cheaper. theirave been eating into core business. we are seeing some slight slowing in demand for some of their displays. so headwinds there. this.ave anticipated analysts have been downgrading their estimates. >> how are they going to turn things around if that is the case? is that because of a new product they have got coming? >> they have launched one much quicker than they have anticipated. 4 and theyalaxy note want to get ah

>> mario draghi in naples. the european central bank is set to give details on the asset purchase program announced last month. >> start your engines. we are a buyer for the largest car show. we kick it off with the vw ceo. already world market leaders when it comes to passenger cars. we still have some need for action. inrockets set to launch frankfurt. the german ipo priced at the top end of the range. 42.5 euros per share. >> hello welcome to "countdown." >> a warm welcome to the first hour of the program. let's get to one of our top stories this morning. the european auto show kicks off in paris today. let's get straight to european correspondent hans nichols from paris. of the a glimpse of some vw brand-new models. will you be getting a lamborghini or bugatti? >>. getting pricey. be packs of rabid dogs. for we have is a fight share. we have a fight for who is going to sell what car to what individual. they came out with an exciting concept car. it was blue. it could be silent. you could go electronic. prev

let's start with mario draghi. he disappointed the markets. european stocks close lower as the president failed to set a target for how far he is willing to go to revise the economy. we will be watching the u.s. jobs report. analysts estimate a sharp rebound for september. christine lagarde told bloomberg we are facing serious clouds on the horizon. we will looking in depth at some of those clouds and a couple of minutes. let's start with what is happening in hong kong, though. a week of democracy protest has had consequences. the markets slumped on its return from its two-day holiday. the demonstrations took the shine off gold. let's check the atmosphere on the street. our reporter joins us now from hong kong. so, paint a picture for us. business is back after the holiday. how much is it business as usual and how much has it been a real disruption? >> i'm standing on the bridge connecting a passenger ferry to a major shopping mall in central hong kong. as you can see, people behind me going about business as usual. you see people going to wor

here is more. >> european central bank president mario draghi is convinced that buying bundled debt fromks is the right move. the idea is to provide an injection of cash to stimulate the flagging eurozone economy. >> the new measures will support specific market segments that play a key role in the financing of the economy. they will thereby further enhance the functioning of the monetary policy transmission mechanism, facilitate credit provision to the broad economy, and generate positive spillovers to other markets. >> the central bank plans to purchase so-called "asset-backed securities," also known as "abs." banks buy up outstanding loans, re-bundle them, and sell the debt. usually investors by them in hopes of getting high returns. now the ecb is set to buy large amounts of the securities. that will allow banks to get rid of risky assets. they will acquire fresh liquidity and be more inclined to issue loans. draghi says the european economy urgently needs such stimulus, but critics contend such asset-backed securities are not transparent and are full of hidden risks. they were in la

mario draghi front and center. talk about ukip and the earthquake in essex, we'll talk about what that all means and the economic policies. do they have any? screening andla, oil. in ukipd lineup here election, big. is in aabour party state of shock this morning. they only held the majority by 600. a little bit of rethinking. -- push labor more on the immigration story? maybe. maybe they need to think about for next year. >> a lot to talk about. remarkable move lower. everything from geopolitical risk at the market and nothing happened. break down over 20%. what it means for opec. back in two. ♪ >> welcome back to "on the move ." time to talk about crude. oil trading at the lowest since 2010. -- end of november >> in vienna. >> the opec meeting. will they tighten? >> every time you say opec will be interesting and then it is boring. they don't do anything but why would they? where thea situation price of oil has really come down. most of them think that oil should cost $100 a barrel. below 90 and it is falling near

climb back to the prior highs. >> we did have disappointment this week, investors had been hoping mario draghi would say something, the ecb would be stepping in with more concrete measures. they didn't get that. is that heart breaking at this >> you know what's interesting, there's so much desire for draghi to really step in and do sort of u.s.-style quantitative easing. my concern is, number one, they have sort of one foot on the gas and one foot on the brake, so they are providing all this liquidity to the banks, investors want them to provide even more, but at the same time they've got stress tests on the banks, so they are saying here's the money, banks, but be careful how you lend it. >> we did the same thing. >> i think that was a bit of a problem, but also you can provide as much supply as you want, but if you want lending to pick up, you need loan demands, too, not just on the supply side and i think the problems in europe are so deep and reform is such a requirement, i'm not so sure the demand side is going to pick up. so i think the structural problems in europe are a bit deeper. >>

. >> a lot of investors put more faith in mario draghi then maybe they should have.is a struggle we have had in the u.s.. the fed has to do all the heavy lifting. mario draghi is trying to do the same thing but it's looks like the germans aren't going to let him do that either. >> it is a mess. you have a union that is dependent on each other in terms of monetary issues. forget it. you are never going to get anything done here. that has always been a mess and a bit of an experiment that i don't think anyone thought ultimately would end well. is so much easier for us to fudge our economic data. you have to get all of the different countries in fault and they aren't all willing to do the same thing. we have a big day. we will talk about these markets and whether or not we have seen a return to volatility. we are also looking at the funding that is needed. i do have a lot of questions about oil because that sovereign wealth is dependent on oils for their revenue. i should point out that as of the latest update there are 20 total reported cases in the country of nigeria.

i think the measures unveiled by mario draghi over the next couple months are somewhat different than we have seen in 2012. i think investors in the u.s. may be losing a bit of patience. , bute used to show me now i do think over the course of the next two years, if the banks to take up the full allotment and if the net lending turned positive in europe, i think that will slowly and surely be cknowledged. >> that is a huge if. we are going to talk about anything. leaders are meeting with vladimir putin for peace talks. withis standing by details. >> we are in the periphery. i had a chance to do an exclusive interview with president barroso. he said some of the countries are in his opinion doing a pretty good job. >> there are several indications that indicate -- that can suggest slow global growth. we have to take this seriously. >> here is the context. prime minister renzi has just made a speech where he said a financial crisis may be looming on the horizon. you will know it is the day before yesterday that the italian minister introduced a new plan that calls for 18 billion euros in

that merkel mean has already given mario draghi the nod?i can't comment on that but over the last five years he has tread a very fine line. you had better follow-through, and right now the french -- >> will the french back down? the italian budget as well. on the monetary policy us well he has summoned to say about politics and fiscal policy. >> i imagine he's feeling squeezed at the moment. at thesitting here trading deck this morning, how do i read this? is becoming increasingly likely because that is probably the more obvious story and therefore i can bid stocks? i am being hawkish but we will end up blocking and the germans will be difficult in the hedge fund will become a problem and will have a big fight in the center of europe? it is a difficult choice. think the ecb have already moved to a point where they're trying to do more. over fore to get quantitative easing is still very high. if you look at his comments -- do not accept the french budget, politically. this will have huge fallout. as you said the bundesbank is not the governm

the ecb needs to follow through on the promises mario draghi has made.endous progress in the last two years when he said he would do whatever it takes. enormous credibility. but they have to reach some conclusion on fiscal issues. >> we had wolfgang yesterday pitching a separate angle altogether. >> that is a challenge coming out of berlin. we need to see more to simulate growth in germany, and structural reforms. minister prime yesterday in rome, but we need to see that throughout europe. we just got in france and italy and spain. >> -- we need to see that in france and italy and spain. >> what is your sense of the risk happening overseas humming back home and harming financial institutions here? financial institutions here? >> we have seen it in markets already. we saw the market selloff yesterday. we are in an interconnected world. what happens overseas matters here. brian moore added, jamie dimon haddad, a bunch of ceo's from big banks added. added, bunch of ceo's from big banks here. >> in a quiet time, we will see interest rates pick up next year,

and that is something mario draghi is having a very hard time dealing with.id: he did mention the european central bank and specifically said most central bankers say that, that monetary policy alone can't do it. , whether me, janet yellen or head of european central bank. he is specifically saying that mario draghi is against sort of a qe program for europe. >> no, no. that is actually not quite accurate. david: hold on a second. that is what he told me. i'm wondering if what he says is true? >> let me put it in perspective. all central banksers i think agree they do do not do everythg and draghi has been actually begging european politicians, for instance, to cut taxes. david: right. >> he thinks they need fiscal stimulus. think they all agree they can't do everything but, draghi said very clearly, when he was in washington for imf meetings, ecb will do more if it has to fight deflation. he has a real battle on his hand with people like, the german bundesbank about getting agreement on doing this but he signaled pretty clearly he will do qe if they get into

if i watch mario draghi and try to understand, our expectations too high, or is mario draghi backtracking? >> let's be fair. he is the best central-bank communicator and strategist we are ever going to see. he is brilliant, but he is caught in a difficult place. saw pointing out germany would not stand for this i think was a clear signal about limitations of policy germany allow. he is desperately trying to play the game. i think he will succeed even though the asset urges programs are complete and utter twaddle. let me explain why. if you try to buy covered bonds in the market, you are going to come across the banks and investors holding them. they are going to be able to sell them at liber. no one is going to be able to sell and unable to buy any other assets to replace them. the whole asset purchase scheme is a waste of time. it is not going to succeed. >> we are going to take a break. equities in london open higher. easyjet opens higher as well. lifting the well, forecast. plenty to talk about. we are back in two. >> welcome back. sometimes we complain about the reluctance of some of

recovery from that speech that mario draghi gave in 2012. is an important feedback loop between the two economies. kohl's.out about a couple of months ago, the discussion i would've been having with many strategists -- it seems to feel how low we can go. what should i be looking at? think to go back to what i said a minute or so ago, the current account deficit needs more attention. the current account deficit is an issue for at least one or two reasons. the first reasons are earnings on investments abroad. in a post crisis world, the return on those investments are in certain and we have seen the impact of that on the current account. this is one of the most important reasons why it is a medium-term negative factor for sterling. >> i cannot think of the last time it was discussed. >> you are right. it is something policymakers want to shy away from. it is not considered always a pressing issue. >> a pressing issue seems to be wage growth. cpi is at a five-year low. are we going to get that turned around? >> i think the labor market dynamic

mario draghi's pledge to do goes on trialkes before the eu's top court.overstepped its power in 2012 to buye omt mechanism the debt of stressed countries. the program has never been deployed. scholars say the court is unlikely to overcome it. -- to overturn it. se posts anha income of $5.6 billion. releasing numbers earlier than planned. on in the markets. one man to talk to, jonathan ferro. so much going on. jp morgan earnings come in earlier than anybody anticipated. the earnings for the u.s. are going to be key. the biggest three-day draft for the past 500 since 2011. down almost 5% in three days. jp morgan numbers, a slight miss on earnings per share. citigroup, wells fargo, tom keene and "surveillance" will bring you through. here in europe, no let up. the selloff does not rest. ftse 100 down by .7%, dax down by .8%. losses on the ibex. if the earnings are not in prison, the data in europe is failing to impress as well. drop. of germany, a industrial production out of the euro zone, a drop of 1.8%. what does it mean for the bond market? bond yields.

it emphasizes the insane amount of work that mario draghi has in front of him.anks are not going to lend. q.e., -- you can talk about q.e., but that is not going to help you >> banks have spent amount of time leveraging capital. it must be healthier sector than it was 12 months ago. >> it has become a utility tough sector. it is very much regulated. it is wonderful news for financial bond investors. it it might be horrible news for lower.s because they are those that are buying into financial bonds, into the balance sheet of these which are becoming safer by the minute, good news for investors. for the real economy -- horrible news because the tab will be close for a long time. >> what about the equity investors? the swing has been immense. we already bought the good news that comes out of these tests? >> i think the equity side of the financial stock is catching on. yes, you might see some significant moves upwards, but ultimately this is not a very good end game for equities. they are the owners of institutions which will be safer. it will be less leveraged. i

not today in large part of the mar mario draghi being seen as the zoimt in europe in storms of the accommodationwere looking to 1941, 1939 and 1936 would suggest we are oversold in some views but of course the draghi matter didn't help. >> you have a little bit of the psychology that pushes some sellers in the market beyond a technical level. and then every technician steps in. yesterday catchen called it that cascading avalanche, and of course when you keep breaking through the levels you need a floor to be able to stop it. >> the data wasn't too bad. challenge layoffs at a 14 year low. and then berkshire hth hath away chairman talked about stocks. >> since the third quarter of 2009 looking at our businesses they have improved at a rather constant pace. now we heard talk about double dips. we heard everything. they have never decelerated much. never accelerated much. autos are doing worse and houses are doing better. but the overall is remarkably consistent. >> talked about a number of individual names. buying more ibm during the quarter. the executive compensation plan at coke. and in general

of course, now mario draghi, and yes, we'll ask jean-claude trichet about what he didn't do, which ispolicies in europe. that is front and center. markets have cleared, and with it, one way or the other, julian emanuel suggests a temperature of the global and u.s. porridge is just right. goldilocks would know, a goldilocks market. victor, wander in here. let's look at the porridge heating up. this is the ruble off the ukraine election. this has happened just as scarlet fu gave top headlines. that's a ruble 42, and it's one of those tea leaves of the economist magazine with a canary laying on its back. how many canaries are in the coal mine right now? >> most of them are outside in ukraine, russia, even in brazil. that chart of sub-growth g.d.p. , it's what's bothering u.s. stocks at the moment. >> is there a canary in the u.s. equity markets? >> at the moment, there really sent. >> i agree. >> you know, that's i guess part of the frustration. >> with the porridge analogy, which i really like. when you work with drew matus in economics, the porridge is part of the friction of the econo

ecb president mario draghi is at odds with germany's finance minister over what to do with europe's economyin washington, d.c. for the imf meeting. pledging to ease monetary policy more if needed. german finance minister wolfgang is warning against u.s.-style quantitative easing. draghi is hammering away on another issue, the necessity for structural reform. >> i am well aware of the argument that reform is better achieved in good times. i do not find this argument compelling. >> the squabbling between the ecb and germany has got investors on adage. what is the best way to position yourself admit the volatility? joining us is president and chief investment strategist of ardeni research. still with me, barry ritholtz, bloomberg view columnists. i had been calling you the voice of reason. you point out i am being sensational. being a little bit sensationalistic. we do see a lot of volatility. 100, 200, 300 point swings days in it grow. >> the market is swinging between fearing that the global economy is slowing and fearing that the global economy is slowing. it is bad news. , bad news has bee

. >> right now when we see mario draghi not doing what it takes, if you look at the bombs and what they, two years, what incentive is there for anyone? >> not a whole feet, i think. deposit rates are negative. buying the funds from the bond market is trying to force a rebalancing of some way of trying to create something in europe. i'm not sure that it works. i think that mario draghi will be able to do whatever it takes, but only when he can demonstrate to mrs. merkel that the breakup risk is being priced into the market. we are not there yet. as i said on thursday, a precondition for ecb help is the example of the 10 year it would germany spread to be at least 200 and 50 basis points, 70 or 80 points away from their. we probably need to see it down closer to 100 rather than 105 before the bank of japan comes back in. the magnitude of the moves in the market today means it is critical to be tactical. great to have you on the show this morning. we have been here before. big mortgage lenders talking about making it easier to borrow money. are you listening, john paulson? is subprime back

mario draghi is going to be speaking at brookings in the next hour. do you predict he'll have do more when it comes to fighting low inflation or possibly deflati deflation. >> i think they have done a masterful job and fired with all possible cylinders and heavy constraint. our sense is that he has to do everything he can. and that might mean more than what he's already doing. but he cannot be alone doing it. so we also believe that fiscal authorities. >> have to act. >> governments, they have to act and they have to get on with structural reforms. they have to conduct fiscal policies that are at a pace that will not hamper or put a brake on the limited growth that there is. and we all sense that there are a few country, including germany, that can invest a bit more in infrastructure. germany has indicated that it would invest in infrastructure. we believe that it can do a bit more. >> we talked about global risks out there. i know the imf is looking at this disconnect between what you called buoyant market, financial markets and weak economic growth

the mario draghi announced a set back of the securities purchases but the little less than expected. rmany ended right at the lows today. and draghi was very sour saying he's kept rates as low as it can but now it's up to the rest of the leaders to do something to help out. restructure the economy. we talked about the decline in commodities for a while. two, three percent declines in some of these every day. as we are seeing these companies get iffy when you get west texas intermediary around $80. ebola concerns. finally way fair, priced $29 above and opened at 36. this company makes no money but they have 35% revenue growth. that is what they are buying them on. >> decoding elon musk's cryptic clues. is a new model right around the corner. should you buy tesla? we have a heated debate. and a down grady for j.p. morgan and an upgrade for bank of america. who made the calls? and we'll talk to the anltss which financial play is your best bet. then did you hear the one about the nfl player who benched himself and won big himself on the real field? that's right. more coming up you want to

but the eye of the storm now is clearly mario draghi with the european bank meeting he had in italy.came through with nothing new but it is precisely that that is worrying people. yes they will be buying packages of loans from the middle of the month and will buy loans for the next two years. but the irritation the man was showing. almost stepping back from earlier comments that he wanted to increase the size of the european central bank's balance sheet by a trillion euros that caught many off guard. suggesting he's actually creating the impression that the ecb has no further to run. that the run might be over. that the counting sheet maybe have been so tense. that is a critics view but certainly draghi offered nothing new. there was no great promise and it's interesting that the spattish and italian banks have begun to fall rapidly in the wake of that. and that is why such a rough finish. >> several years we'll see more comments from dragdy about this program. >>> this week's trek crowd. we feature two indiegogo. button up against signul. a personal beacon system. and sends personal

mario draghi, speaking here in washington, the brookings institution. he had plans to increase the size of the balance sheet as needed over a period of time. he wants to go back to the 2012 level which is almost 1.1 trillion euros higher than it currently is. the question is whether or not it's enough. here's what he said about the new era at the european central bank and its policy. >> we are transitioning from a monetary policy framework, predominantly founded on passive provision of central bank credit to a more active and controlled management of our balance sheet. we expect measures to have a sizable impact on our balance sheet. >> reporter: so what the ecb had done previously, guys, it would do its policies without considering the effect of the balance sheet. that created a huge decline in the balance sheet and perhaps european economies went along with it to the downside. now they'll targeting a balance sheet. he's not giving it a time period. we talked to stan fisher. i got to ask him a question about the impact of the dollar on u.s. monetary po

but it's a difficult dance for mario draghi which he also has to dance together with the german society and also with the head of the bond bank. both men are not really on good terms as we hear according to a lot of sources and also there was that big reuters article last week which was saying that they are not at all getting along. so it's a big problem to have the bank not on board, but at the same time what we're hearing out of the ecb that the only men actually preventing qe right now is mario draghi because apparently a majority of the governing council member is in favor of that policy, too. with that, back to you, steve. >> thank you very much for that, annetta. nice work this weekend. >>> greece's third largest lender eurobank has failed the stress test saying it must raise 1.7 billion euros to cover the capital shortfall. speaking to us from athens is the ceo of euro bank. sir, thank you very much for joining us. nice to speak to you again are. you disputing this figure because i look at the latest headlines from you saying no capital shortfall, and the ecb says 1.76. what actu

. >> and going back to august with mario draghi speech at jackson hole.f we do not find something to do working together between fiscal and monetary policy, some form of asset purchases by the central bank, some help from governments in that regard, then growth will accelerate on its own. that is not how it works. the dangers it will slow at some point. you get the sense that everyone would be happy if growth trundled along. happy is the wrong word. people are slowly giving up. you can look at consensus growth forecasts. we are not picking up. >> talk about finding something to do, ibo familiar suggesting the ecb is buying covered bonds corporateering buying debt. what will the next move be? >> the best thing we can see is they will do whatever it takes. there is nothing that is not on the table as far as mario draghi is concerned. he would buy corporate debt in a flash and if he wants to buy the isunt of debt, the trouble it is hard to see how you buy enough to make a difference. you can buy anything you can buy and wait for the few that you can have and

after the meeting, mario draghi said they would start bying securities and yuans. draghi says the buying program will last for at least two years. >> surrounding the economic outlook remain on the downside. in particular, the recent weakening in growth momentum. alongside geopolitical risk cut down the confidence and in particular, private investment. >> he said policymakers are ready to do more to address the risk of inflation. he said they're committed to using conventional instruments if needed. the concerns remained strong across the euro zone. the region's inflation rate in september was 0.03% and was the lowest level in nearly five years. it's far below the central bank' inflation target of almost 2%. >>> investor, they were disappointed by the ecb and they sold european stocks. france shed 2.8% and markets across southern europe dropped more than 3%. the selling carried over to early trading on wall street, but share prices rebounded in a volatile session and the dow and ended the day only slightly lower. let's go to ramine at the tokyo stock exchange. how a

janet yellen got a 270 point rally yesterday but mario draghi gets a 350 point selloff. >> i think thet's verdict is pretty clear on the different directions of central bank policy. >> who they're most concern

we are not expecting a change, but we're looking for details from the ecb president mario draghi on hislan to offer asset purchasing to boost the european economy and we will get details and a couple of minutes time. >> tickets to russia where vladimir putin -- take us to russia where vladimir putin has been speaking about the economy. >> the president says sanctions would not hinder russian development and he pledged to boost capital in banks affected by the sanctions. >> stephen carroll, thank you so much. sports now. results from the champions league -- they start right now. >> after losing their opening group a game, atletico madrid put their european campaign back on track in spain. a 70th minute strike was enough. they are joined by malmo. as time went by, when you then tells started to get better -- juventus started to get better, we change things around. we switched to a 4-2-2, and the game opened up. the game was there for the team that was ready to score and take the chances, and it was us that scored. the french international striker came off of the bench to score as real mad