mr. draghi: thank you. you are correct. no, not really.r mandate is relatively narrow if compared to the broadness of the issues that are going to be discussed about the finance ministers. we operate. we work. and we craft our international our on based on pursuing monetary price stability. even in international fall out we look at what conditions internationally are supportive of price stability. so i don't have any message at this point in time. be confident this will fruitful. on your first point, let me be clear. if we go back to when the euro was created, there were people who said, it's wrong. it's a mistake. cannot be done. those still e been saying the same during the life of the euro and saying the same today. i find this position, and that will tell you in which way i'm concerned. in other words, not so much by the market developments, which i said before we look and monitor with attention but without anxiety, but in a different way the euro, i was saying before, as being the cornerstone, the piller upon which the single market c

mr. draghi. we have a central bank derby today. this is a sideshow for mr. jor headlines. but once again, it is about a lack of animal spirit. >> well, sure list of it that is not entirely surprising. we had a major financial crisis in 2000 and 2009 that started in the u.s. and went globally. part of the problem for europe was a lack of an aggressive response early on. so it is not surprising to see animal spirits not coming back in europe the way they have come back, for example, in the u.s., we had a very aggressive fiscal and monetary response. i think the lack of animal spirit has to go primarily to the response out of the european central bank early on after the crisis. tom: francine, bring up the chart one more time, this is critical. it is absolutely important we understand that nominal gdp in the netherlands is below where in 2007. 2008 have meanwhile, the u.s. is we appear economic growth. francine: right, but i imagine -- part of that is monetary policy from very different areas. going at different speeds and levels. do you believe the eurozone will

mr. draghi wants to help greece. i read this morning in an important greek newspaper that mrs.erkel wants to help greece to enter the qe. i hope this is true. >> thank you so much for that. >>> we'll have to go for a break. check out world markets live, our blog which runs throughout the european trading day. we'll be back after this short break. >>> hello. welcome. you're still watching "street signs." here are your headlines. >>> we're looking at the french presidential candidate, fran fi francois fillon who was reportedly summoned by magistrates. >>> more money, more problems. shares in man plunge after a loss on steep decline. >>> and bad chemistry between bayer and covestro. >>> and president trump promises tax relief by doesn't ignite markets by failing to provide concrete measures. we will speak to john w. snow in about 30 minutes time. >>> all right. let's get straight to some uk data. uk manufacturing pmi falling to 51.6 in february the lowest reading in about three months that compares to a print of 55.7 in january. the reuters poll was looking for 55.6. so below expe

mr. draghi? >> good morning to you. no change expected when it comes to monetary policy, but when it comes to the tone, mario draghi will have to walk very, very fine tightrope between the dovish and hawkish expectations. when it comes to growth numbers, growth in europe has been strong. sentiment is the highest in six years, unemployment is falling to eight. and inflation has been picking up. when it comes to headline inflation, it's at the 2% level, even though core inflation is at 0.9%. they have to acknowledge that sentiment, and the rest of the economic picture is looking brighter. the euro/dollar ahead of that meeting, higher to the tune of 0.2%. but we are expecting dollar strength to come back ahead of the jobs number tomorrow. again, monetary policy expected to remain unchanged. and the ecb will likely stay on the sidelines when it comes to monetary policy for the rest of the year. why? because of the slew of european elections and it can't afford to expect any uncertainty ahead of those. back over to you. >> ar

mr. draghi have to pony up and change policy to back up this strength in the euro?t think immediately. it could be some more rhetoric in about three or four meetings times towards it would be enough. on the uk side we had some more inflation data stronger than expected. not good inflation that we're seeing in the uk versus the better inflation here, before you it could mean a change in policy sooner than expected. >> so just not doing more negative and perhaps ending the infinity when it comes to quantitative easing in europe is enough to strengthen the euro? >> as well as easing political fears and growth and reflation coming six or so months later than we've seen stateside. >> though there's a strange bid for the euro. it can never get below 105. you throw everything at it, political mess, brexit, strengthening u.s. economy, trump rally, the tightening of the fed versus the ecb, the euro remains above that level. >> but the em currencies have done well amid the fed tightening. >> they have. emerging market stocks are also now near multi-year highs. steve, thank yo

mr. draghi again overseas. this stuff is really going on. zandy said he recognized that too. you have to recognize another uptick, besides a downtick that can happen. it can happen down. it's a probability game. if france goes the right way. >> david, with what you have said about the power of not adding more regulations, do you think that has something to do with this hiring stuff? >> as i said before, before this segment, i said if you're a small business, there's nothing negative on the horizon, nothing. what's negative? they're going to give you less regulations for obamacare. they're going to give you a tax cut. everything is neutral to positive that can come their way versus an atmosphere for the last 16 years, let's call it, that's been regulation, regulation, regulation. >> can we break out of the gdp doldrums? people think it's population and productivity. >> i think these guys are too negative. they're not going to get to 4% growth in the long-term. >> get to three? >> if it was 2.25, maybe pick up half a percent. >> for '17? >> no

mr. draghi? how does that limit his options? on the swissie is a lot more exaggerated in the same mentioned to you mentioned. the swissie should have been weaker, had it not been for for safety -- let's just call it like that it on the target2 -- let's call it that. es, the wayet2 balanc qe works implies that the ecb buys certain bonds, gets cash which is directed on and so on and so forth. importantis a really point. with all of the hysteria about operational qe , which is predominant? , the qeat this stage forces have played for a while. more recently, we have the other flow you have mentioned. you can see it also in the behavior of bonds. multi standard deviation moves in. goesrmany, the short-term to negative levels and then comes back. all of this is consistent behavior with a level of worry and people looking for ways to hedge it. francine: what is your call on the yen? themos: for us is, for now, and untold they signal some change in policy, the yen is mostly driven by of elements in u.s. rates. the mechanics of their yie

mr. draghi's comments. italian yields have been flat near zero bound. the u.s.the .lection, up, up, up to 1.38% the diversions, i have never seen before. thecine: i am looking at south korean stock exchange. there has been turmoil, but not in the stock market. you have thercle, first report of allegations in september 2016. step of the way, the stock market isn't doing much. this is the third time president park has apologized. moving torliament impeach her. this is when samsung gets arrested. it is going other way that is intuitive if you were to look at it from march. the market is seeing a federal hike next week. if one thing to derail the move, it is today's payroll numbers. the final edge of data before the meeting. 200,000 jobs are estimated to have been added to the economy last month. joining us is jim reed, the deutsche bank global head of strategy. .et me start with you overall, what would need to happen today for the fed to change course? it has been telegraphed, priced in. is there any way that they cannot hike? >> it is extremely unlikely. i would e

mr. orphanides: to tell you the truth, to the extent mario draghi can completely avoid it, i think he would completely avoid it. and did. i have to mention two things, we note, this is very clear, from some circles in europe, in particular, those worried about the german economy overheating, there are girls for the ecb -- calls for the ecb to start tapering, potentially start raising rates and winding the commission will measures. this is part of the debate. if we look at the performance of the economy overall, the ecb, if anything, is still too tight in its policy. let me remind you that the latest readings of core inflation, which is the underlying measure we should be focusing on, not oil prices. this has been stuck below 1%. this is much lower than what the ecb should have been delivering. by any measure, ecb monetary policy is still too tight, they need the accommodation and to continue to do qe well into next year. if they can avoid giving any signals about 20 tapering will start, they will avoid it until september. vonnie: the euro strengthening since the press conference. not a lot

mr. harrison was running that. let's get to the bond pits now kmek in with rick santelli at the cme group in chicago. >> hi, david. of course everybody's looking forward to hearing what mario draghiompany has to say later on in the week. we know that our market is fully prepared for a raise, the third one. and indeed it should give us a little extra horsepower all things considered. but it certainly seems though the stories of the day, the cloak and dagger politics of the day seems to have diverted some investors' attention. so this could be a critical day. one-week of tens, you know, it backed away from that 2.5 level, but we're hugging pretty close. you can see on the november 1st chart before it all began how tight of a range it actually is. but still we haven't really seen much outside the 2.30 to 2.60 as we hug it. if you look at a one-week of bunds, a little bit sloppier ride. and obviously the rates are much lower. but all in all if you look at bunds and you look at the separation of 215 basis points between our tens and bunds, the fact is it seems to have come to an equal librium, which makes sense, especially if you look at the landscape of all markets today. one-week of