mr. draghi will keep stressing the point over again.ust be very disappointed with euro/dollar the last two weeks all we've seen is the euro firming back to levels that existed prior to the extraordinary measures that were announced at the last meeting. >> yeah. and one way of doing so, it's good to give us perhaps a little bit more detail on how long the interest rates actually should stay that low or at least at this level or lower levels. that could stay on the u.s./dollar exchange rate. and practice some more information on a qr? >> maybe. i mean, we -- you know, this carrot has been dangled out there about, you know, how we address the cleansing the banks are doing at this point on their balance sheets to meet aqr and the stress tests and then make sure what they're doing doesn't prevent them from lending into the real economy. but in realize, we've spent two years now seeing contraction in lending to the private sector around the eurozone. that hasn't changed. that has to be a worry. that is increasing the disinflationary pressure

mr. draghi himself. er you think about the institution, mario draghi viewed favorably by 74% of investors. he comes out on top. you have got to say i am not surprised. what i am surprised that is the man at the bottom. governor kuroda. the governor of the bank of japan. what more can that man do? >> you could read from those numbers that investors do not like q.e. i am not sure that is the conclusion they're supposed to take from this. jon, they give very much. jonathan ferro in front for. up next, novartis, the profits disappointed. we will see what is weighing on the world's largest drugmaker. when we are back in just a minute. ♪ >> this is "on the move." up at the" is coming top of the hour. first up, a fragrance maker posted profits lifted by the emerging markets. the chief financial officers will give us more details. star's chief executive talks travel and the impact of the euro. novartis turned in disappointing results. appropriate -- it reported profit and sales the shade below estimates. we are j

mr. draghi and his colleagues? >> we might have to wait quite a long time. 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 liquidity that was injected tending to flow into the least would notomies and have the impact in the economies that you wanted it to. >> what happens to bond yields in the interim? thehi devotes -- debates nation of unveiling more measures. do the pearl riv

mr. draghi said, we are not finished. i have to tread this thin line where they try to do enough. do in the less pressure on the governments. they are asking for flexibility. >> they don't want inflation to go any lower. speaking of which -- >> speaking of which we will look at portugal back in focus. if somebody was as took a firecracker and threw it in the middle of a playground and everyone ran for the exits, which were stocks. stocks dropping yesterday. futures higher this morning. this wrapped around this espirito santo. few investors,a i want to be careful with this. espirito santo international which has an ownership structure which leads down to espirito santo, the bank, they missed on some debt payments. this set the market into a frenzy. this is a bank in portugal that has an exposure which they defined as just as 1.2 billion euros. ss, principle is bank, stre government bonds. governments could be called upon. christian schultz was on here earlier. he said in a couple of days, it will all pass by, because we will realize that -- sovereigns. >> the point his colleague is

mr. draghi. and they will, but all in good time. >> and what about carney with the bank of england tomorrow? we get overexcited. sterling here? >> sterling here, i've been wrong on sterling all year. i think we're probably 170, 172 this month. down 1.8%. it doesn't take much softer data to make people wonder. >> coming up on cnbc, wealth more on the state of the european recovery with ecb board member peter pratt. we did see the gains that we've seen so far this year. after the losses that we saw yesterday. the banking index was really important yesterday at a seven-month low. still waiting for information as far as commerzbank is concerned and these german banks and sanctions violations. the markets are adding to gains, though, over in italy, up over now 9% year-to-date. >>> carlos slim is ready to break up his american mobile empire, selling a large chunk of the telecom giant's assets in the face of movil empire in mexico. the company opens 80% of mexico's mexican market and 7% of mobile. tradi

mr. draghi and people's bank of china to see, again, where they affect the currencies and therefore the globalot of moving pieces. ben willis, good to check in. with that, the dow down 121 points, over to dom chu. >> off season lows, but the consumer discretionary stocks, one of the worst performers today, second only to energy. you see they are down 8/10 of 1%. tractor supply, which in the preliminary earnings report, second quarter profit results would be ble expectation followed by names like underarmor, cvs, l brands guiding comps to the lowest single digits. this calls into question, for some, carl, about whether the american consumer is still spending in its environment. back to you. >> thank you, dom. when we come back, ibm with a multibillion investment in chip research. we'll talk with the senior vice president, director of research about the move joining us live at post nine for an exclusive interview. dow's erased, oh, 60 points of the losses, now down 12 2. back in a minute. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust you

mr. draghi, they're executing an art form. created asset bubbles by the stimulation that they've created over the last six, eight yearened and it's their job to try and take that piece of artwork back down. that's what we're facing. whether you want to look at it through the front windshield or rear view mirror, fact of the matter, we will be beholden. i continue to call it the mattress effect. money will sit with the people making the rules about the money until we get a clearer picture in the front windshield what they're looking at and how they're affect our ability to invest. >> john manly, against this back drop. why weren't you concerned we're in an asset ubl bubble leer? >> i'll worry about tomorrow tomorrow. look at the valuation on the market. the market's around 15.5 times forward earnings. hardly a bubble. two weeks ago the people were calling for the end of the world. i mean it was never good enough. now it's too good. the simple fact, we can make money as the economy goes from okay to good. we made a lot when it w

mr. draghi said he would do anything and if there is a lot of issuance, maybe investors have a limited menu, broccoli and spinach. but if are you hungry enough you eat broccoli and spinach. >> want to go back to drew to something that jim lowell said. it is kind of a dig. you said we wouldn't want to be market timing with client cash here. i'm interested what you would say in response because a lot of people are sitting now in conservative positions waiting perhaps for a employment to get in who have been wrong and caught on the wrong side for quite some time. >> yes. we're not big fans of plugging your nose and just buying at any time. the reality is that we've seen pe multiples go from 15 to 17 1/2. earnings moving up at a 5% clip but revenue is only at 3%. we are sitting in a market with a lot of financial engineering behind it. the federal reserve has kept interest rates low so corporate america can borrow on debt and buyback stocks -- >> you're not sitting there kicking yourself that you're missing this party? >> no. so bill, as i mentioned, we do have an exposure to equities. what we'

mr. draghi and mrs.ase stop ruining the reinsurance industry. >> yeah, well i feel sorry for his company being collateral damage in an era of low interest rates. but the job of any financial services company is to make sure they have balance on their balance sheet so that whether rates are high or low, they are relatively protected. it is tough for us, for example, as we are an insurance company, aig, and we offer financial products to our customers but in a low-rate environment it's hard for them to save money through us and have enough income. >> are you worried, though, about players getting into this market that don't understand the risks that it entails and offering lower premiums than -- that they're going to suffer from later on, when some catastrophe happens? >> i think there's been a sea change in the regulation of financial services companies around the globe as a result of the meltdown in '08. unfortunately aig was a big part of that. those days aren't going to happen again. the regulators are

mr. draghi will be very aware of. the economic conditions continue to be very weak here.have some business growth numbers today. that shows business rates at its lowest in three months. retail sales numbers were flat and no indication that consumption is picking up here in the our row zone. i know you guys are all big fans of soccer, what we here is called football. he's playing 5-4-1. basically, it's the long ball game. he's hoping the one strike e at the end is going to do something for him. we don't have full blown qe here. we don't have anything like we saw from the fed or the bank of england. there are those in the market that is you're getting the result you're getting because you haven't played up front and gone for full blood qe at this point. >> i get it. i get it a lot. you've reach other limit in terms of understanding the actual strategy. >> i understand it. >> they're not just randomly running around after the ball? >> no. although the american game the other day, yes. >> that is a good analogy. >> i like it, joe. and he would have never tried that before wit

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