novotny is the governor of the austrian central bank.e asked him whether investors in europe are a little bit too complacent when it comes to market risk. what we have now on an international scale, there is one group, as we have seen at , that seeseting bubbles emerging. therefore, it is ok to increase rates. on the other hand, we have the position that is urging especially europe to be on a very expansionary path. in that context, i see the policy of the ecb as something like middleground. expansion, but we do it in a cautious way. we are quite aware that, in addition to monetary policy, we have events of macro prudential policy. if there is a situation i could immerse -- that could emerge, markets, this is something where instruments have to be applied. we have examples across the u.k., switzerland, in the netherlands. i think one has to see this in a broader context. >> when we talk about sovereign debt and we see yields at 3% in spain and italy, surely that is just as unsustainable for these countries to borrow at those low rates as

. >> i had an exclusive in view with novotny from the ecb.is response, we are just not there yet. he mentioned the success of the ecb's recent measures. on investor complacency, a yield below 3% in spain and italy sustainable? in a word, yes. from there.ck it up &aa is swirling around -- m is swirling with imperial tobacco laming they have been eyeing. i will be delving into smoking and slimming. more on those deals a little bit later. back to germany. >> thank you so much. we will be looking at how angela merkel is trying to seize control of this spy scandal by expelling the top u.s. intelligence officials here in berlin. it is a remarkable story. we will have more on that later on. for now, i will hand it over to elliott. >> day 4 of israel's operation to stop rockets being fired from gaza into israel. it has called up more

think novotny touched on some of those concerns. what the ecb did in june was more about buying time. in your interview, you mentioned that what they have done was stopped zero -- the euro from moving higher. that is all they can hope for at the moment. and the fact that the irony of aboutxpressing concerns the markets being complacent when it has been driven by their rhetoric is somewhat amusing. but i do think that the big change for the markets is coming in the rhetoric that we have is going to change. semiannual next week is a little bit too early, but in september, when we have the new projections, i think there is going to have to be a more explicit acknowledgment that we are much closer to raising the rates. >> where is euro-dollar on the day of the first u.s. rate hike? >> if we are correct and if that comes in q2 of next year, then i think we are high 1.20's, perhaps. if the euro moves lower, we are probably done. we are not getting wanted native easing. the story is not going to flip. some people think this $1 trillion inj