>> i don't think they are concerned with that at all certainly mario draghi wasn't. i think i have a degree of sympathy for mrs. lagarde because draghi left her with a situation where she had effectively no choice but to move further into unlawful territory. now is the ecb concerned about moral hazard that is estimate and we've already seen the consequences. the ecb isn't concerned about it they have taken a decision long ago under mario draghi in 2012 that it will support the euro no matter what the cost and that it will essentially support the unsustainable borrowing levels of italy and other countries this is the new phase of history in money printing. in the whole of economic history, there isn't a single instance where massive money printing came a good end and it won't in the eurozone either >> i thank you i want to thank both of our panelists this morning senior research fellow for comparative public law and international law, jr. professor at financial law and gunnar beck mep and geoff as well this morning. let's check the markets for the reaction to this we

has stopped and before that was where former president mario draghi made the famous comment whatever it takes within the mandate is what we will do to secure the position of the euro to preserve the euro and that works markets rallied and they sort of they were able to member states that couldn't borrow as well were able to borrow well again and so it eased the flow of money and this is coming to another point where people are saying is there going to be another whatever it takes moment for the e.c.b. now the e.c.b. under current president christine legarde is actually seen as doing a pretty good job right now it's increased its debt borrowing it's expected to increase its debt borrowing even more that helps by the way that does help countries borrow a little bit more it takes a bit off their plate and it makes it easier for investors to give that money but there is this question of whether that's palatable to conservatives in germany for example as we've seen i just want to try and not a bright nerd is. there any bright spots on this gloomy economic horizon no. a lot of course we ca

has stopped and before that was where former president mario draghi made the famous comment whatever it takes within the mandate is what we will do to secure the position of the euro to preserve the euro and that works markets rallied and they sort of they were able to member states they couldn't borrow as well were able to borrow well again and so it eased the flow of money and this is coming to another point where people are saying is there going to be another whatever it takes moment for the e.c.b. now the e.c.b. under current president christine legarde is actually seen as doing a pretty good job right now it's increased its debt borrowing it's expected to increase its debt borrowing even more that helps by the way that does help countries borrow a little bit more it takes a bit off their plate and it makes it easier for investors to give that money but there is this question of whether that's palatable to conservatives in germany for example as we've seen just what was not a bright is there are there any bright spots on this gloomy economic horizon no. i mean look of course we c

is no limit on what they can do with these lending program now this is kind of reminiscent of mario draghi when he famously announced whatever it takes basically with this gesture and investors are now in a buy everything mode now knowing that there is a safety net with the fed buying everything including corporate bonds now all the gains today are being led by some of the most beaten down and heavily short of cyclical names such as autos energy transport banks and more than 90 percent of the s. and p. are rising today so this may be overly optimistic as we're likely to see some choppy trading as banks are still struggling to reopen the economies well kristie where is all this buying coming from and is it even sustainable. well it would look at that's where it gets really interesting because according to the latest from deutsche bank the flow data hedge funds and various other levered investors professional investors have continually tried to take down exposures including today during this rally continuously selling out of all the positions and winding down their exposure so by contrast ro

it was mario draghi beating the drum andencouraging government to embrace governments and reforms and create more head room for exactly these kind of eventu eventualities to meet these crises we have this crisis many governments fixed their roofs. we are in the die lema where the ecb is left holding the ring here to try and keep down borrowing costs for those peripheral members italy, as annette pointed out, is square and center as the forecast mentioned debt to gdp could get close to somewhere near 60% depending where they fund their spending programs here that means they'll probably end up with annual deficits in excess of 10% which is a long way off what the ecb or indeed the commission would hope for and raises increased pressure on how the european central bank continues to push down the italian neeld so t italian yield, so the btps and you get that widening out between the bund and the btp and the markets get increasingly skeptical to suppress the market's natural desire to sell the risky piece of paper i thought his comments were fascinating. to me, it just exposes that challen

whether the amount of stimulus that was being put out not so much with christine lagarde but like mario draghithe past was even appropriate, the president of the german central banks always took a very hawkish line. on the one hand you have this perception where the german public, that something here is not fully working and now you have the biggest court saying this is against our constitution, which, if you can imagine, many germans do appreciate and love, but also you have a big awkward moment now, a difficult situation for the german central bank because on the one hand they have to respond to the european central bank, they are part of the euro system and it would be unprecedented for them to take any action with a tremendous impact on the market, but they also do not want to be seen as operating outside of that if that is with you german court is saying. vonnie: we got headlines a few moments ago that the european commission is inviting member states to extend the research and on non-essential travel to the e.u. until june 15, so this is essentially all of the european states within the

as you remember, her initial stance was i hope i never have to do the mario draghi style whatever ites. she did. after a slip up at one of the earlier press conferences when she said we are not here to close the spreads, what she meant was that is not our primary goal, only a week later she came up with the pen deck -- the pandemic emergency purchase program and has been continuing to insist that no limits will do what we have to do. it shows quite a lot of strength. she has come up against opposition from some governing council members. she has done what needed to be done, whereas euro area governments, at least at the aggregate level have been slower to react. i noticed the first headline from your interview was we are here to close spreads. they have had to walk that back ever since she said that is not her job. earlier talking about the eu fiscal recovery package. do you think they are excited angela merkel and emmanuel macron had agreed on this even though the frugal are still hovering over it? paul: what struck me about what the vice president said in his briefing and also when

it's the mario draghi approach on steroids and it is making you more optimistic about the rest of the year. is that right? >> yes more of the great risks here was that we started with -- we would have started a debt deflation where people because they didn't have revenue coming in had to default and of course when they default the people with the money stretched and may have to default and that's one thing we really want to avoid and the fed has basically backstopped just about every -- in the economy. a few they haven't but unlikely to start a debt deflation as a result of this also, the continued expansion of the money supply makes it highly unlikely that price levels fall. it's much more likely not right away but starting late this year and next year seeing an acceleration of inflation. >> the counter to that is the high debt levels on these companies, even if it's backstopped by the fed has to be repaid some point, this's an argument for a much slower growth period, that's an argument for japan zombie-style growth for a decade? the argument is that's a big overhang that keeps this

happening to the euro it's pretty impressive for the first time in many years, instead of waiting for mario draghind christine lagarde to go to further negative rates, for the first time you're getting a coordinated response that's helping stabilize it they've been a drag for a while. >> that's a great point. rick, i really appreciate these conversations. makes me think, so thank you good to see you. >> thanks, becky. >> i hope we'll talk again soon. >> thanks. appreciate it. >> andrew? >>> coming up when we return, the reopening of america and the challenges facing the hospitality business ian schraeger is going to join us costco, the big box retailer stock falling after hours and missing estimates. the company reporting $283 million hit to net income costs. that's related to the pandemic quk"etnsig aer this it's hard to eat a whole pizza. but a slice is just right. that's why fidelity offers dollar-based trading. buy what you want based upon how much you want to spend, even if it's just a slice of a share. seeing the break in the clouds before anyone else. together, we'll weather this storm. >>>