mr. draghi. that's been it.i look at that and i consider the fact as you point out in your last segment a very anemic gdp report, consumption in the u.s. continues to struggle rally in the last few days seems a little aggressive. >> on top of the allowsy gdp report you still have a tax increase threat, the senate didn't get it done so we'll have to wait until after the election. and even the threat, i've been reading, maybe you have too of a government shut down. there's a debt ceiling issue later in the year. you have some powerful issues in front of us that are not all that good are they? >> this is a great point. it's funny, this summer we've become amateur experts on greek an spanish politics. most market participants are focused on europe. that will shift as you get into the fall. as you get into the general election season as investors focus on the fiscal cliff and risks the angst will come back to the united states and the challenge is not only are we looking at an enormous amount of fiscal drag if curren

bundesbank and that is going to create some very volatile market conditions because even if on thursday mr draghi does put his money where his mouth was and his mouth was there very very clearly and firmly last thursday if he puts his money where his mouth is then we can be pretty sure that although asset markets will react positively straightaway the door should bundesbank he's going to make sure that it gets its voice heard and we're going to see conflicting headlines there a lot of two way trade it's going to be a very very volatile and to this week right now gone bad so there's of course where the maple consultants and what they said why do you think the breaks in the african countries are also higher risk. well i think we've got to look in context here there was a lot of headlines and you you mentioned that russia and other of the bric nations were high risk i looked at the reports and russia was ranked number fifty one hundred sixty nine in and that's really not what you'd classify is the highest risk so i think some of the spin that was put out was perhaps a little misleading albeit a bull

mr. draghi and others who have spoken would be aware of this. they have set in trade now a very significant level of market expectation and there does need to be follow through. you'll see that happening but we should bear in mind there are still a few rather crucial political issues that do need to be addressed because really for temp cb to be intervening with confidence here and going back and buying government debt again -- remember it's not all government debt since february of this year, it would need to get some preconditions in place, in particular it would want to see that a country like spain and perhaps italy would be actually requesting support from the esff in order to buy government debt itself from these countries in the primary markets and the ecb could come in alongside and engaging its own intervention that would have a more significant impact. all in all we always got to be in europe there's a political process that is very tricky to coordinate and the financial market expectations, of course, run around this. but it's very imp

mr. draghi which is very muscular. the idea of whatever it takes. you the o of a banker before of this type in europe, the ecb's central banker? >> well, technically it comes out of every central banker all the time. all central bankers have the mandate to do whatever is necessary to preserve the integrity of the financial system. that's the fed's responsibility, ecb's responsibility, bank of england's responsibility. so in that sense it's sort of a statement to central bank principles 101. it's worth noting of course that mr. draghi did caveat that within the mandate. that, of course, i think is one of the critical issues. how far politically is he going to be able to go? >> paul, citigroup has got a lot of attention this morning for its assumptional forecast depending how you split the hairs. greece will leave the eurozone shortly. 90% probability is what they're saying. are they right? >> well, i would never like to criticize one of my peers in the market but, no, they're absolutely wrong. >> why? >> if greece leaves the euro, spain, portugal wil

mr. draghi said he would do anything to help. they'll put that to the test.hey're going to have one large bond buying program and some say it has to be a trillion euros. it's the last trading day of the month, sue, and we're kind of in the middle. global indices up. and brazil that had a tough time lately that is tied to commodity prices did fairly whel, china had a 3 1/2 year low. >> last night, president obama said at a fundraiser last night in new york that he is spending an enormous amount of time trying to work with them, and tim geithner is spending a lot of time working with them to recognize the sooner they sake some decisive action, the better off we will be. >> but our next guest wondering why we're spending so much time on europe which is out of our hands. and allowing our debt crisis to get worse. you can make the case that what happens on other shores effects us here, so make your case. >> i want the president so stop being mother teresa. you can't have an equal discussion on bended knee when you're trying to look someone in the eye. they're not

mr. draghi is talking to the head of the bank? that's a normal course of conversation to me but there you go. 115-point move essentially in the dow and not confirmed anything they have been talking about or that they had been talking and certainly there's an action likely next week from the ecb of some sort, bond buying, a rate cut. we don't particularly know. i want to point out a great -- not a fabulous year but a good year so far because people seem to be pessimistic about the marks. up better than 6%. up 8% on the s&p. the nasdaq is also having its best seven-month year to date since 2009. take a look at since june, big movers commodities. stocks in the middle and bonds under performing and finally note here that in terms of where we have been, the risk-on trade is back a little bit here. take a look at the energy stocks. biggest move since the market bottomed in june. the aussie dollar the biggest currency out there and industrials and materials remain the most shorted sector and as a potential to put more money back in the m

mr. draghi speaking to german officials about potential action next week. it did move the markets.p. dow industrials at the highest level since early may and i would note here while the euro did shoot up initially it's come back down in last 15 minutes. not far from the highs for the day. >> we're looking ahead to next week and talking about the fact it's a week filled with earnings, it's a week filled with the fed, the ecb and then on friday the jobs report. >> between the jobs and central bank, do you think earnings impact the market? >> i think some what but earnings are out at this point. it's ecb, stimulus, fed. >> and jobs. >> and jobs. >> something like lowe's, you think it's a light revenue like everything else we have seen? >> looking at that. see how the consumer's spending going forward and looking at lowe's. it's muted by everything el

mr. draghi expanded the mandate? >> he did but he threw out that the doors are wide open. nothing specific but that we have a lot of money basically. we stand there. not running out of money and what does that really mean? right? the market took off. i think you saw a lot of short covering today. people have been negative. i think that just cause add lot of people to run for cover really quickly which i think is part of what you see in this rally. >> that's what i was going to ask you. is this, up 194 points on the dow, does it have staying power if the basis is short covering? >> you know, i think today i think we kind of stay up here. people are now looking forward like you said to the fed announcement. everyone's expecting that uncle benny -- he's going to say something. listen. the housing numbers are horrendous today and a conversation. >> the jobless numbers were better. >> the information is confusing at best, right? and so therefore, the ball's in ben bernanke's court and i think the market's going to hold its own right here and probably close up triple digits. i t

mr. draghi? >> i think he can certainly be long some of the dividend stocks here in the u.s. let's. you the it in perspective, what draghi did here is essentially put a tourniquet. spain was on its death bed, 7.6% ten-year yields is unsustainable sew stopped that for now. that's the short covering rally you have. he hasn't solved the eurozone crisis, hasn't solved the debt problem and certainly hasn't solved the fact the globe is slowing. you can be long dividend paying stocks but they'll be very volatile. the trade still is and it's the trade i have on is long u.s. stocks, short euro. >> has he put a near term floor under the market, steve weiss? >> yes he has. as a matter of fact he can sort of buy the market here because while he hasn't come out with its plan the expectation is there will be a plan and i've never seen such a huge reversal in the yields as we saw in some of the spanish debt today. it was amazing. so i think he can buy a little more in the markets today. debris with bk completely. you want to be in the u.s. i disagree with stephanie a little bit, i think earnings ha

mr. draghi said, it obviously shows his commitment to doing whatever it takes, but one of the lessons frome to our financial crisis here is that these things are crucial, they're important. they're necessary, but the market will be relentless until all the details of all of a comprehensive solution are out there. if you remember in february of 2009, for instance, we announced -- >> big swing and a miss. >> i wouldn't describe it that way. >> that's the way i'd describe it. that's my job. >> that's your job. >> yes. >> we announced the broad outlines of a plan after being in office for about 10 or 14 days and we're all familiar with the market reaction and -- >> yes. >> -- each subsequent week we rolled out the details of each of the necessary elements of a comprehensive plan. >> right. >> and until the last detail of the last element was out there, the markets didn't really gain their traction, but once those details were out there, it did gain traction. the markets stabilized. >> so if we were going to say what inning are we in, in the ecb rolling out the details or europe in general fixi

mr. draghi was stating a fact not changing policy. do you believe that? everybody is trying to assess these three or four words that are strung together and what they mean. >> i think it's classic and emblematic of how a central banker speaks one can interpret anything he said that way. he said before. why did he say it and how did he say it this time. i'm siding with the view he said it before but he sawed it before on the verge of additional policy actions and i think draghi is talking in a specific way that led the market. >> i said the same thing you did. >> you look at the powerful reaction of markets yesterday especially the bond market. these are supposed to be smarter guys. and i don't know -- i should get used to this, but i was joking with dennis the other day. wouldn't we all be rich right now if we could trade volatility in the european bond markets. i don't know which way they would go. but 100 basis points swinging the two year? >> talking about europe let's go across the pond to the land of the olympics this morning to get the global market

draghi. silvia, mr. wolfgang schaeuble is on holiday. that's where he's meeting mr. geithner. you think -- how is schaeuble responding to any pressure in letting the ecb do more? >> reporter: in all honesty there isn't an awful lot more the ecb can do. they can start buying bonds again. we know what happened the last time they bought bonds. it lasted a half hour. it can be prearrived. the ecb said it's not dead we don't feel the need to lose it right now because there was no turmoil in the bond markets even though yields were creeping up sponsorship the ecb will step in. but it can't do anything to really solve the issue. the bonds, they can keep a little bit of a lid on yields but they can't really bring them down significantly. they might prevent them from blowing up completely. okay. but we all know that on the other side we do have a problem with seniority because the more the ecb sucks up from the bond market the more we have a problem should there be some kind of a hair cut somewhere down the line because the hair cuts for the private-sector will get more severe. there's

mr here in washington d.c. these are your headlines for thursday july twenty sixth two thousand and twelve european central bank president mario draghi said this today. is ready to do what ever it takes to preserve the euro. and believe me you can be you know. well that is up for debate but this comment was enough to reportedly spur the bout of market euphoria that came out afterwards but how do you invest around what a policymaker like druggy may or may not say and how do you a hedge against volatility created by governments central banks and their central planners we'll talk about it with leader and natural resource investing rick rule and speaking of top former citi group c.e.o. sanford while better known as sandy weill helped to build the behemoth citi group is today now says break up the big banks. so i think what we should probably do is go and split up in the banking and banking. what is the significance what kind of legs does this movement have and what could be the motivation for him saying this now we'll talk about it and the delegate blackrock vanguard firms that collectively manage more than seven trillion dollars are wei