portugal just up over 0.2%. similar story as far as the risk sentiment is concerned in the bond markets right now. portuguese widened by around 42 basis point so far this week. we're seeing it pulling back around 10 basis points in the session today, firmly beneath that 4% level in the european session in yesterday's trading session. >>> now, banco espirito santo expressing the lending didn't satisfy the bank's own capital requirements. investors were scratching their heads as to how exposed the bank and its external shareholders are to the troubled holding company. earlier on, the ceo of the bank of cyprus gave us his view. >> i think it is unfortunate that we have not got this confidence. it is unfortunate to have such stories emerge. >> steve is in lisbon. steve, do you think ultimately it's going to come down to the reputation and damage done here to banco espirito stando and the financial implications of this issue? >> i think you could be right. from everybody i've been speaking to on the ground, the gover

europe talking about portugal. u.s.a social network with no users or no revenue that has a market cap of $4 billion. shall we take note of that. you should scratch your head and have a look around. >> there are two issues. the individual issues around iringpayments and par companies and the feedback into the sovereign -- and whether there is a backstop available. case portugaly their reformlp, record would allow them to draw on funds. that's specific surround portugal. >> i sthere concern that we are talking about backstops again? everyone was talking about recovery. now we are talking about backstops again. >> i was going to say the chief aliens,ent officer from says, the problems of europe are far from o ver. banks are on the year low. interesting for me is that the euro, the currency did not really tumble. >> wasn't listening. the currency is not listening. >> christian scholz was telling us he is worried about the real economy. the inability to explain what is going on in germany. there is something weaker going on.

portugal worries about banks. gaza ground invasion looms still, and industrial output from france and italy, worst misses seen in two years. >> that's the negatives, and that's impacting now, but jobless claims better that morning, down 11,000. >> on a four-day sample. >> four week moving average came down, and that's what wow want to see, continued improvement in the u.s., labor market, europe seems to be spooking the markets because the fed minutes, nothing new, yes, the end date for october, but they didn't say much about higher interest rates. that's to figure out next. >> oil, though, down ten straight days. >> a record. >> a head scratcher given the worries we have in the persian gulf. >> without a doubt. and, in fact, we saw, obviousl,; the response in oil when that began, but you're right. we'll see how long that continues, not having, perhaps. effect some thought on airlines, well, delta went down more as a result of not great numbers there, but american airlines yesterday, quite the opposite being strong

distressof financial in portugal.irito santo parent company missed some debt payments. the bank of portugal has now just said that banco espirito has enough capital to accommodate any negative impacts. we caught up with portugal's secretary of state to the prime minister, i asked about the health of the country's economy. >> if you look from 2010 to 2013, you see that portugal .ncrease taxes by 24.5% that is more than france, spain, italy, and ireland. portugal has been doing well in terms of exports. that has been the job of changing the economy from inside. we are in a very good position so far in terms of our external account and turning around the economy. on?s risk back greg, head of fixed income. moedas had lots of statistics to demonstrate how far portugal has come and how much the reforms have made a difference. two-year bond yields are a great example, they were at 20%, they're back down to about 2%. do you think it is possible that if there was -- let's talk about anco espirito santo and second. if there was

portugal is lower by 4%. one of the catalysts stemming from there, their largest listed bank issues that have been bublging for a while, but coming to a head today. >> overall. >> yeah. >> does anybody know more about banks and investing in foreign countries after -- >> it's perfect. >> what was that one he bought in england, the one that -- it was a huge run. i read that and i go, you're kidding. >> you already started this, but -- >> no, i didn't. >> what was it? >> northern something. >> yeah. northern rock. >> again, one of these guys -- >> and it quadrupled. >> i mean one of those main ties and he's swimming. michelle, you started mentioning it earlier. i want to add to it. i think a big theme of the day is the weakness overseas. >> yep. >> japan factory orders, china, as well. they're talking about a contraction now in france and italy, too. >> and italy, as well. there's this theme emerging which is a big reason why u.s. gdp was so weak. in the first quarter, weather that was a reflection of what was h

>> portugal under pressure. government bonds fall further as concern grows over the future of the owner of one of the country's biggest banks. >> flying high. airbus is in talks with indigo. >> big box for bailey's. burberry beats estimates. is its new ceo worth the price tag? good morning. you are watching "the pulse." we are live from bloomberg's european headquarters in london. i am guy johnson. >> i am olivia sterns. also coming up, a porsche for the people. we take the new family car for a test drive. >> argentina advances to the world cup final but you don't have to wait to find out who will be the winner. we will explain later right here on "the pulse." first, we begin with markets. a referral government bonds back in focus today especially portugal. its shares lower after parent missed a payment, we need to focus on this story. manus cranny. santo, is owned by a holding company. they have about 25% holding. look at both of these stock prices. the issue is that the espirito santo financial company missed

portugal, keep in mind, when you look at global market makes a 1.3. portugal is going to fall off into the ocean and no one is going to blink. >> an italian drugmaker and you have two spanish companies, a spanish bank and another small spanish hospital operator, it does affect sentiment? >> i don't think it's a long-term effect, when you see portugal, you think italy, spain, the peripherals, look how small greece was and what effect it had on the economy. >> they don't want to see the same contagion that we saw in it 2011. that's what set it off. looking at global perspective here, it's a big bank but it's not something that's going to have a major effect. >> when you talk about the acb, what are they going to do? it's negative. you can't go negative than below zero. >> it was a bad bank, reality is we're up 6% over six weeks. people were looking for a reason to sell. >> there are a lot of people saying u.s. money went in there, that particular portuguese bank did have accounting concerns. i can see why you say it. >> we've been talking about, this ev

portugal government has come out to reassure the businesses. there are concerns about the lender of banks. portugal's biggest bank is partly owned by the district assigned to the family. it failed to make a debt repayment earlier this week and have been counting irregularities. they say there is no cause for concern. the business of the family is one thing and another is the bank. it's very important the portuguese actors and foreign investors fully understand the difference and remain calm in regards to the banking system. >> european stocks recovered some of their losses from the mainhis week. markets ended above flatline. shares still ended lower, so those concerns to a certain extent they were made and took their toll on european equities this week. in the united states, the dow jones and s&p 500 have staged a moderate comeback the last couple of hours. both of those indices trading above the line previously below that flatline. investors having a slight increase in corporate profits from wells fargo that has spoken to some extent raising h

yes, portugal is tiny. art cashin.n the us, half of the economy of north carolina but speaks to the broader problems not addressed. is that a risk going forward into the second half for the u.s. market? >> that's a great point. the banks are doing all they can. they're basically lowering ratings and most importantly trying to instill confidence as to bring corporations to invest more in capital spending people, et cetera. the one big surprise that happened over the last month is we've seen negative sentiment in much of the eurozone. that is a danger. we'll see how that plays out for the second half, but i would focus on the european sentiment, because i don't think liquidity will be as much a problem. >> what's your world view on u.s. equities for the rest of the year? obviously a lot to get through in the summertime. fed minutes added to that yesterday. how do you see the year shaping up? >> very modest gain. still positive between now and the year-end. prefer japan among, in terms of equity exposure. however, one thi

if portugal beats gaw by less than five goals or ghana beats portugal by only one goal, then we advancegoal differential. they we even tie. that would still work. u-s-a? [cheering and applause] [audience chanting u-s-a] >> stephen: u-s-a, u-s-a. you heard them, nation, so soccer guys, go out there thursday and do whatever is the equivalent of soccer winning. [cheering and applause] folks... [whistles] folks, president obama's iraq continues to descend into chaos. i don't know why they elected that guy. [laughter] the terrorist group isis is spreading all over iraq like some sort of fundamentalist humus. [laughter] and true defense hawks like me know what needs to be done. >> air strikes turn around the ability for an al qaeda army to march and gain more safe havens. >> we should cut off isis' axis. that involves air power. >> air strikes could be a big, key part. >> it's important that we do make air strikes. >> send some air power. send some air power with targets we can identify. >> stephen: yes, we must send some air power on targets we can identify. for some reason all of iraq's goo

as we assess what's happening in portugal.ere, they say these two, finding themselves with large placements of paper, looking increasingly unlikely to play. they are under a program until two months ago. a lot of people are wondering why this wasn't dealt with sooner and a lot of people are looking at deutsche bank and the financials. >> i think stifel nicolaus again, they haven't raised a lot of capital. they sold some assets to raise capital, they actually haven't raised a lot of capital, itself. so, again the banks if europe are hand strung because they are the only financing mechanism for the corporations. he knows that. that's why draghi basically said, we will give you as much money as you need as long as you need it to unlock that. >> he unlocks that credibility? >> they do kwul qe, bed type qe. again tonight i think china like you said earlier, china didn't react too much to the bad data they put out themselves. japan, obviously, orders are very poor. >> that was a big miss. thanks to the man around the world. >> exact

portugal telecom owns some of the debt.t back over to you. >> karen, did you show an intraday espirito desanto chart? do you have one of those? >> i don't know if we have an intraday to show you. but we have the course -- >> it opened up 9%. now it's down 3%. >> 11%. it opened up 11% higher then it was 9%, then it tanked, it's been down 4%. it is very, very choppy across the day. some people taking this as the opportunity to get out of the stock. >> that's what i mean. yeah, someone was selling. but our futures are still sort of moving a little bit based on what's happening there. all right. thank you. those concerns over major portuguese lender rattled global markets thursday. joining us with this market insight is jurrien timor, director of global macroat fidelity investments. the tracks of his tears still after that first goal, you knew when that guy missed that first goal, you know there was a problem, did you not? did you not? >> a little bit too well during that match. i had a sinking feeling. >> you know you are a bi

the central bank of portugal insisted this lender is solid.fromof the trouble stems the parent company of the spirit to santo international. company has suspended debt repayments and there are allegations it has been covering up a sharp -- shortfall in its accounts. and then onto its subsidiary, the portuguese bank i was talking about earlier. story, effect of this the entire banking sector took a hit on concerns of contagion here in portugal. shares were down almost 1.8%, for instance. int company owns a stake espirioto. remain in negative territory in the u.s.. the nasdaq is down 6/10 of a percent and the s&p 500 down about 0.5. the fear is that it could lead to a wider selloff after months of gains in the stock market on both sides of the atlantic. will keep an eye on that story, but next we will move to asia. india's government has unveiled its first budget since the election earlier this year, including more infrastructure spending and a pledge to open up the economy to foreign investors. the prime minister campaigned on a pledge to boost

we had a situation yesterday surrounding portugal. two-way risk is back in the market now read or is it? buying opportunity yesterday? let's find out. let's see how the markets are opening up. lex futures a little bit higher this morning. happy friday for me. the stoxx 600, the worst week since june of last year. concerned about the bank in portugal and missed bond payments. raising the possibility that there is this thing called risk. wow. newsflash. this is your open friday morning. ignore the price on the dax. that is yesterday's number. you cannot really call this a substantial rebound. over 1%dices were down yesterday. keep an eye on these movements for any news out of the eurozone through the day. check out the bond markets. guess where the money went throughout the day? into treasuries. the best week in four months. yields on the 10-year, five-week low. money going into the buns as well. nds as well. spanish bond yields below 3%. is that sustainable? investor complacency. novotny said to me that it is sustainable. is the euro t

so we're still long on portugal. >> great to get your perspective.old your supply of kitka t-bars. hershey is raising randy prizes 8% due to soaring commodity costs. analysts say hershey's move could trigger similar announcements by nestle. with clock hat priets on the rise, will you cut it out? are you kidding me? or is that sugar rush just too good to give up? get in touch with us via e-mail, twitter or direct to me, @jchatterlycnbc. stay with us. >>> welcome back to "worldwide exchange." china gdp expands in the second quarter, hitting government growth targets and beating some forecasts. investors ask if more stimulus will be needed to support growth this year. >>> portugal's telecom says it will pursue legal openings against espirito santos for missing nearly 900 million euros payment. >>> royal mail and tnt are under investigation. >>> and taking a gamble, gtech rise as it coughs up nearly $5 billion to buy itt. >>> we've had uk unemployment and earnings data out this morning. we've got three months unemployment coming out at 6.5%. that was as

portugal? crisis to go away overnight. good to be vigilant, but on the other hand, the irony is developed europe is one of the least over valued places in the world for equities right now. the multiplings there by historic norms, developed europe is, you know, probably a good buy. it's odd to me that's where they bore the bankrupt of the l selling. i think there's other places more over valued than that. >> we'll find out. best case now is negative gdp in europe for the quarter. they had issues. >> they have a lot of issues, i agree. >> the higher euro does not help export economies, even germany. >> no. >> good to see you, see you next time. jim stuart of the new york times. >> stanley fisher making interesting comments about the markets and the economy. cnbc's senior economics reporter has more on that. stevings his comments were on banking and financial regulation. >> it was, and it was the q&a that made the comments here in the first speech as a fed vice chair, saying the fed doesn't see an

meanwhile, the fallout from the bank in portugal renewed concerns about trouble in europe's banks. jp morgan says some of the data appears worse than it is because of a few extra holidays during the month but says it's still not pretty. >> europe is the key issue right now. we've been thinking europe could grow 1.5 to 2% this year, first half of the year is averaging no better than one. that disappointment to me is what i really want to keep my eye on as we look forward. >> reporter: and then the u.s., jobless claims fell more than expected and now hoover a shade above their best level since the recession in 2008. in fact, they are actually running at quite normal levels. this follows the strong june jobs report announced last week. the question is whether the u.s. can prosper if key trading partners are weakening. half of the economists construction in the first quarter was the result of a plunge in trade and tricking chinese exports in japan where the u.s. sources a lot of goods raised questions about u.s. spending and investment. >> there is no doubt in my mind that it's going t

concerns about arguably the largest bank in portugal. but it is, then, having a significant impact if you look at recent news in some of these peripheral feds in what's going on in portugal and questions about whether we have broken this -- between sovereigns and banks. does this move perhaps argue that we haven't? >> without going into any specific details of this incident, what we should recognize is that the broad systemic risk that we had a couple of years ago in the financial system are probably behind us. the ecb is conducting a stress test. but the one thing i would like to raise is what this episode currently underlines is one of the problems that we have been -- for quite a while is in the current environment where the economy is still weakish, where the public sign res still weakish, getting these countrie these countries going out of a program, i think that is potentially a risky strategy. what it does mean is that -- is less powerful if something happens. and that, of course, omt, was one of the key things that brought these

one reason for the decline is portugal. there are secures -- concerns centered on the bank the spirit of santo. headme now is peter tchir, of macro at brean capital. back to the future with the european debt crisis and here is peter tchir. is this coincidence? what is going on? >> i think now europe has run waysourse and there is two this could play out. >> can you explain what exactly has happened? ito santo failed to make a debt payment to its debt holders. that continue today so that could pressure on that bank. this follows on the back of another bank, which is in austria, guaranteed by the unclear whoit is will bear some of the cost. there is pressure on the country to make a debt holders there some of the cost and take away some of the sovereign guarantee. >> can you do that cut and replace for portugal we did for greece? the scale of portugal, is that crucial? about 11 million people and the unemployment rate is 15%. all ofissue is europe is the small banks. the problem we are going to face, people will look at italy

after the portugal bank shot. and germany, argentina, and the world prepare for sunday's climactic match. good morning, everyone. this is "bloomberg surveillance." we're live from our world headquarters in new york. it is friday, july 11. i'm tom keene. during me scarlet fu in adam johnson. we get right to our friday morning reads. europe rebound over the 2% plunge. it does have enough capital to survive the stress and requirements. that news yesterday is what took us down. secretary of state john kerry meanwhile arrives in kabul. ?hat else we have go ecodata. oh -- this will tell us where we are spending the money we don't have. >> our chief economic correspondent michael mckee theht an 18 inch fish in river. >> where they are meeting in jackson hole. >> charles evans will be with mr. mckie later on. >> yeah, we will have those details. at 7:00, and 8:00 wells fargo. that is the big one. it percolates into next week. several items of note -- ready for this? number one, free slurping today from 7:00 to 11:00 at 71

the problems go on in portugal. a bank had an issue causing. the shares fell 19 mrs. raising the financial concerns we have seen in europe over a while. and that had a knock on affect to greece which tried to sell a bunch of bonds. the thing there is 2 1/2 to 3 billion euros in bonds. in fact, they only sold 1 1/2, pulling that back. that with the united states, jobless claims came in better than expected. 304,000. here's our cnbc wrap it update, the tracking estimate for the second quarter still running 3.2. that's down 0.1% with a range among our ten economists racked by moody's analytics for us, 2.7% to 4.2%. healthy compared to the rest of the world. qe estimate is not tracking it. it's just a forecast. it incorporates on going data. every piece of data comes in and we plug that into the gdp estimates. q3 running 3.2%. >> quite a pickup in the u.s. gdp. >> compared to minus 2.9 for the first quarter. we think we're going to do. 3.2 for the second quarter and 3% the quarter after is the current thinking on wall street. >> steve liesman, thank you. sue? >> all right

recentuntries like portugal.ut these reforms are not fully in place yet and the financial system is not fixed. there is a lot there that could come home to roost if growth starts slowing down. even countries that have taken action the fiscal front like greece will be left with large levels of public debt. they are by no means competitive yet in that poses a real risk to the economy. fax will they have a longer new normal? we are finally emerging from that here. a multiple to take of time for europe to get out of theirs? >> europe has spent a lot of lyrical capital undertaking reforms and belt-tightening. but they started from a very difficult place and still have a fair amount of go -- fairmount to go. the hope is growth will pick up significantly. growth is beginning to bottom out, even in some of the weakest economies. donenk a lot more will be on the financial front in particular, but the more rock later market -- labor market still has quite a way to go. >> what if you look at japan? upthese three pillars hol

>> it all revolves around the spirit of the bank in portugal and questions surrounding the viabilityf the holding company. today, though, a very different tone. it seems the markets are prepared to look beyond this narrow banking issue in portugal, and we have very much the market's higher here in europe. and looks as though you're going to get a rebound in the united states, as well. and i have to say to you, it was an 180-point round trip. and people started to look into the detail of this story, they said it really isn't going to do serious damage to european banks as a whole. and it's certainly not a systemic crisis. i think already traders were starting to step back from selling over this sort of risk aversion panic that we initially saw. so you'll probably get a better day on the u.s. markets today. one story that i think it's worth looking at here. the ftc suing amazon. this is over apps that children have been using. this whole story of app purchasing, apple settled and said, look, we're going to set aside $32 million to pay back those parents whose children have used these a

you know, we got estimates for how many people showed up at these viewing parties during the portugal game. these there the viewing parties hosted by the san jose earthquakes. at civic center plaza, there were 5,000 swhwho showed up and here in san jose, there were 2,500. we are expecting a pretty good crowd here at cesar chavez park in just a little bit. but this is do or die. a knockout to determine who moves on to the quarter finals, and of course what happened in the last match with germany, losing but still advancing, that can't happen again. germany is a formidable team. it has yet to lose a match during this world cup. so far, we are expecting the u.s. to buff up offensive play. the team has 27 attacks, that's the second lowest number in the group stage of 32 teams. so pretty low. the bottom line, stating the obvious here, is the u.s. has to score. >> win or go home, and sometimes you see that raise the level of performance and sometimes you see that make teams nervous. >> interest ratchets up every four years when the u.s. plays in the world cup, because it's an event, we love

a lot of worries about portugal. art cashin on the floor said the sell-off about 90% due to what we're seeing in portugal. worries about the biggest bank, the ten year exploding. >> yeah. my biggest concern has been rates. the ten year, in italy and spain. but i think what was most interesting today, when i looked at the emerging markets, the msci, i thought i would see red across the board. actually, the msci was flat today. i think people stepped back, said, you know what? if the emerging markets are flat, why should the u.s. be down so much? now, my issue on europe is that i think it's fully valued, why too points cheaper, got the banks in it. those banks make it cheap, look cheaper, but it's not. the u.s. market, to me, is still the safest market. the best market. it's come back. it's good to see every once in a while. i think we're fine and still have concerns about emerging market. dealing with the flow of funds that went into the markets and you have to be cautious of those. particularly with the news we saw f

what is not is portugal right now.the debt crisis significant he how is banco espirito? >> very difficult to make an assessment at this point because there's a lot of i don't know, individual aspects of that with respect to this particular bank and it's not clear that the other banks in portugal are affected in the same way. the important thing is that in order for this to be resolved the european economies must move and they're not. they're going the other way. may industrial production was horrible across the board, including in germany but really very, very bad in france. france is the biggest concern right now. and ecole has a big share in b.s.e.. >> why? >> because of policy and because of the fact that they can't seem to be able to getd their act together on labor policy or anything else. this is a real difficult situation. >> do you think another debt crisis is oncoming? >> i think that depends on whether or not in particular france and italy want to make the rorls that they need to do. the new italian prime min

portugal 1k0rd again. well, the reaction -- i think this pretty much sums the reaction up. >> i believe that we will win! i believe that we will win! i believe that we will win! i believe that we will win! [ bleep ]. >> jimmy: we didn't lose but then we didn't win, it ended in a tie. for 90 beautiful minutes americans cared about soccer and it just bit us right on the -- portuguese superstar cristiano ronaldo made the cross that led to the game-tying goal. this is ronaldo. he's well known partly because he's so -- [ cheers and applause ] because he's so ugly. people know who he is. he doesn't even look real. he looks like a ronaldo doll. right? this is kind of scandalous. we have obtained the first ever nude photograph of ronaldo with his shorts off. and get ready, ladies. because -- there it is. [ laughter ] [ cheers and applause ] if he was on "game of thrones" they would describe him as unsullied. very good. oh, hi, how you doing? [ cheers and applause ] take it easy, you. all right. still, though, as w

fears of contagion over portugal causing a sea of red. the markets end of the day recouping much of those losses, a solid reversal into the afternoon. small caps industrials and financials what happens to the sell-off? tim seymour? >> i tell you what, to me, it was less about portugal than positioning. yes, a catalyst, yes, still something on people's mind. complacency. i think we talked about it plenty of time with the lack of volatility in these markets. you look at espirancito santo. i think you are in a place where you have a lot of people that really didn't understand the situation, in fact, significant cross holdings. if you did the math, it was just discussed. i think if you look at where the markets are here, the s&p gave them handles. it's really where you want to go on positions that are under weight. we will talk about minors, the banks. these are places where you have a lot of upside. you have earnings moment item going into the second quarter. >> i think if you sold the mark, portugal, a $3 billion port goes bank, the news ha

portugal, greece were at the center of the crisis.a $1 billion rescue and exited the bailout less than two months ago with a clean bill of health. you think the problems are over. well, they're not. worries sent around this, the banco espirito santo that plunged 19% thursday. that's because of mounting concerns about the parent company which is interested in various other firms. it failed to pay debt that was due to be paid this week and it's been cited by regulators for accounting irregular lair the ties. all of this stirred up the the crisis that start aed with the banking system. it spread to wall street borrowing cost to portugal and neighbors. investors rushed to that safe haven of gold. european markets have been open a few hours. we'll have a look at those in a moment. first, i want to take you from the banking sector to the role of engines. that's what it's about when it comes to motorsports for fans out there. later they're going to be presented with a greener, quieter potential. we're going to have more on that and the rest

portugal with the troubled banks and adros sector there.ther and how the flows in and out of the trades can move markets more broadly. just paying attention to whether this big move into europe run its course. >> classic strategy sessions. smart investors joining today. do you buy here? what do you buy? where are the bargains in this market that's been rolling over the last week or so? >> they prefer to go by gips, by the way. >> oh. >> oh. >> says the girl who used to live in london, your fancy. do you also drink your tea with your pinky out? >> yes, i do. >> i can vouch for that. >> what happened to you, kelly? small town virginia. just a country girl, now sophisticated. >> one year in london. look what happened. >> i know. wearing a beret offset. >> thanks, guys. >> see you at the top. >>> imagine a future where you do not have to sit in a waiting room in order to see a doctor. seeking advice from a doctor online or one of the next big things in health care. bertha coombs joins us now with more. i always feel like i come out of the waiti

[cheering and applause] but, but, but we also had portugal win in a different game by not by a lot, so we're number two, we're number two, we're number two! >> audience: we're number two, we're number two! >> stephen: and folks, i cannot wait for the next round. like you, i've been bitten hard by the soccer bug, also known as luis suarez. i'm not alone, folks. a record 25 million americans watched sunday's game against portugal, which is what has me so worried. >> americans don't care about the world cup. what's wrong here? well, if you want experts on wrongness, you want fox business. >> why, stuart, are we seeing soccer suddenly skyrocket? why are people so ready to be entertained? >> i'll tell you why this has happened. it's because the news about our country, our economy and our standing in the world is overwhelmingly negative. >> it is awful. we're afflicted with recession, believes iraq. we're downgraded the world over. we don't want any part of that. we want to escape. here's the world cup. how convenient. >> stephen: yes, how convenient. stu and angry zigy smell something fishy

back in portugal again. may call in a loan that spiritual -- espirito.back its regular series of defaults. we're back in portugal. the stock was down 10% at one juncture. reiterating they are back on track. they say cash flow is going to be there by 2016. jpmorgan is overweight on the stock this morning. stepping away from nonprofitable models and they raise the price check it up to 14 euros from 13. a little bit of a different story. >> i will bring you bloomberg ca top headline. mario draghi dismissed rumors that he is planning to step down. ecb and i will stay in the ecb and all of the rumors to the contrary are coming from interested parties, perhaps are unfounded. message, loud and clear, you are going nowhere. the israeli cabinet has accepted a cease-fire proposed by egypt. the agreement went into effect in 9:00 local time. the decision came after israel issued orders to 38,000 reservists for a possible ground invasion. government said russian government -- russian forces may have shot down one of the airplanes. the ukrainian defense minister said

and say were german have to raise money for a bank in portugal.in debt at one of these banks, you are at risk. if that plays out, maybe that is a little bit more healthy for the banking system. arnab das said there is no systemic risk from a bank like this anymore. i asked him how many banco espirito santo there were, he said how many banks are there. that gives you a sign of concern. you are seeing regulatory and supervisory failures come to life. aqrs have stress tests, coming up from interesting to see how they cannot. -- how they pan out. >> yes, we have raised a lot of money, but banks will still feel tests. for "the pulse," "surveillance" in a few minute'' time. live with tom keene and the rest. hope you have a great afternoon. a lot of news to talk about. if you want to follow me on twitter, @guyjohnsontv. have a great afternoon. ♪ >> this is bloomberg "surveillance." a deadline. misses confronting default with no plans for further discussions with creditors. the federal reserve discount america's economic rebound. with noolt scores inflati

chomped on to portugal and janet yellen. here we are. melissa: impressed, meaningful, what do you think? >> not really significant because it doesn't take into effect, melissa, underemployment and people participating in the labor force that stands 62%. that is not really so important. what matters a lot more is the strength of our economy vis-a-vis the balance sheet. melissa: france blaming ugly factory data on too many four-day weekends. the company seeing a steepest decline in factory output in nearly two years. at the same time majority of millionaires supporting idea of a four-day work week. we look at france. they say they have a bun of holidays on thursday. everybody took friday off as well. they're barely working over there. so it is causing the factory number to drop. you're not buying it? >> this is france. i think the bigger issue, what we have here in the united states you have all the tech billionaires that want to go for four-day work week. but they don't understand the american tradition of manufacturing and making things.

existe una oferta de jimÉnez por portugal. si la oferta es buena, la aceptarÁ.el capitÁn de los yanquis recibiÓ una fuerte ovación. se calienta la revancha entre maidana y mayweather. >> en salud es vida, los mÁs recientes hallazgos de salud. ♪ ♪ >>el nÚmero de personas que padece de alzheimer es alarmante. neurÓlogos se han reunido en una conferencia internacional para compartir las investigaciones sobre una epidemia mundial de la salud. es la sexta causa de muerte en estados unidos. existen mÁs de 5 millones de estadounidenses que viven con la enfermedad. el estilo de vida es muy importante para su cerebro. >> hubo muchas investigaciones sobre este tema. esta vez, en dinamarca, se reunieron para develar los Últimos estudios. >> nos dan esperanza para prevenir la enfermedad. >> entre los temas mÁs destacados estÁn los avances hacia formas mÁs simples de detecciÓn temprana y estilo de vida. la asociaciÓn de alzheimer es la principal voluntaria. quieren reducir el riesgo en demencia. puede recibir mÁs informaciÓn en esta lÍnea. muy buena suerte. >> paulina rubio

por portugal is seeing a bit of a recovery. the u.s.arkets are taking a key from what we are seeing in europe and the gains in friday session. the s&p is higher by 8 points. the dow is set to gain 70 points and the nasdaq is looking higher by 20 points. >>> we are joined by the chief market strategist of tech partners joining us from chicago. bob, we are looking at the major banks. what are your expectations for play this week in the markets? >> well, overall unfortunately we are going to see earnings disappoint on the top line quite a bit. down 2.9% gdp came from somewhere and will start to play out. the most important earnings are goldman sachs and intel. those two particular companies are going to set the tone for earnings up usually. goldman sachs, i'm interested in their trading revenue because if goldman sachs has revenue down, that's a bad thing for the overall market. >> we are seeing gains with gold here. what are your thoughts on gold, is it a buy? >> i don't think it is. gold has been ranging from $12 to $13.40. i would say t

. >> but look, it is basically portugal, but portugal and spain are next to each other.ow are you looking at spain? >> yes. >> so say in your ocean city where all of the storms, are you look straight across the atlantic, basically portugal, look, ya. >> if you went in a straight line from where were you standing, on the beach, that's where you would be. >> yes. >> because portugal to the left of spain. >> look how -- you would never think london was that high up. would you think it is straight across. >> that's why when you fly london they casino of go over greenland, all of that, go over the globe. and then down. >> that's crazy. and if you look the opposite direction, look, you would be to would be russia and japan. right? don't you think? mostly japan. if you look across the the united states over the pacific, in the same, is that latitude? >> latitude, that's right. changes in latitude ♪ >> look at that. >> i don't know yes finds that fascinating. >> i think we all think we're looking at glands. i did, too, when i was a kid. >> portugal. >> okay. >> okay, here we go.

portugal did come up in the pre-op. but that's only because i had to state what i'm allergic too and i went into anaphylactic shock last summer after eating some sardines. just like back then, with my blood pressure dropping to 80 over 50 during the show, i'm out here doing "mad money." here's where the real advantage of hand surgery comes in, behind having the brilliant dr. nelson performing the deed. because i was out of commission, i didn't have the chance to be swayed by the horrendously negative futures activity, which, of course, was a bleedoff from the 1 to 2% declines in europe, courtesy of the ultra-crucial, unbelievably important bank in portugal that i'd never heard of until i came to. i didn't experience the 180-point decline in the dow that the bears asserted that we were all whistling past the iberian graveyard. i also wasn't able to sift through the ownership of this portugal bank, a lineage that seemed impenetrable, and was a symbol of the ubiquitous european cronyism that we are all sick of. but here's

portugal and italy things there and thank you as always i'm sure we'll talk about this more so thank you thank you that's all for now but you're going to want to make sure to join us tomorrow for tech thursday our favorite day noted cryptologist bruce bruce schneier is on the show and you'll want to hear what he has to say about your privacy and what you do with the n.s.a. and please don't forget that we love just love hearing from you simply check out our facebook page at facebook dot com slash boom bust r.t.m. please tweet out us need edward and it's from all of us here at green bus thank you for watching the scene. i'm happy martin the stories we cover here you're not going to hear any right other big story at the same time there's a reason they don't want you to. now let's break the set. i would rather ask questions to people in positions of power instead of speaking on their behalf and that's why you can find my show larry king now right here on our t.v. question for. well it's been a lot of. pleasure to have you with us here on t.v. today i'm sure. you wish you a deadly attack

a great cover. >> portugal under pressure. government bonds fall further as concern grows over the future of the owner of one of the country's biggest banks. >> flying high. airbus is in talks with indigo. >> big box for bailey's. burberry beats estimates. is its new ceo worth the price tag? good morning. you are watching "the pulse." we are live from bloomberg'

in portugal abortion is prohibited after 10 weeks. this is the norm across the world, and yet this legislation would say that the 23 states who have enacted limits on late-term abortion, their laws would be set aside. a question i would ask dr. parker. is it your view that these nations, france, italy, spain, portugal, that they are somehow extreme or manifest a hostility to the rights of women? >> thank you for your question. i am not an international human relations expert. i can tell you that when abortion is legal and safe, that the known mortality related to women taking desperate measures when abortion is illegal is greatly minimized as demonstrate by what has happened in this country after 1973. i do know that internationally in a country like ghana where i have traveled where they have made great strides towards reducing their maternal death rate by having better access to maternal care, despite the fact that abortion is legal because it's so heavily stigmatized when women don't access vector, that the major cause of maternal

portugal, talked about this, huge loss there. don't have the capital to cove the loss. will have to raise capital and portuguese market at lowest levels since october. and here in the u.s., another reason we were weaker here. moved up -- employment cost index spiked rather notely. 0.7%. important, details changes and the costs of labor to businesses. now the hawks are out there saying, wait a minute. things are heating up faster than anticipated. another reason the fed maybe should want to raise rates sooner than later. hawks have more ammunition on that. and then argentina's default causing problems in the emerging market end of the world. so the argentinean stock market is down, but also other emerging market stocks are down as well. finally, guys, i want to oint out, home builders disappointing earnings numbers. orders down, down single digits. missed on the top and bottom line. lowest since october. ryland, 1.7% ord other growth? what? i have 10% people expected. still scratching heads. look at the delines. the itb. home builders, one group. lowest level since going