we think of spain. spain had one of the best miss cal records in europe.errific ship relative to germany or france in terms of debt to gdp, deficit to gdp ratios. and now they're completely dragged down in to it because of fears over spanish banks. and yet spanish banks are less exposed in many ways to troubled mortgage is on individual properties than some other areas within the eu like ireland. so spain it is in the thick of it and i think they will need more help. you said 2ri8 i don't know euro money, 1% for three years. that's a lot of fire power. >> speaking of fire power, eurozone economies of course looking to china as a sort of white night. how significant is it that they say it's ready to invest in the eurozone by the cic? >> i think that could be very significant. china sat in total more than 3 trillion dollars of foreign exchange reserves and up until now, the lion's share has gone into the u.s. dollar. and certainly can't be in china's interests to go to a single -- or back to more of a single currency foreign xhank reserve system. because aft

spain is set to sell two and ten year bonds. analysts warn it's not yet time to celebrate. >>> china central bank promises a series of stech steps to boos liquidity trying to steer the economy towards a soft landing. >> and another repsol asset and reportedly seeks another international partner for ypf. >> and in the u.s., two major banks are in focus today as bank of america and morgan stanley get set to report first quarter results. >> you're watching worldwi"worl exchang exchange". coming up, find out about dunzy holds the answer to the the presidential election. at 11:40, we'll talk to a man who is rolling with the stones. and we break nokia's highly anticipated first quarter results at 12:00 cet. instant analysis who says the mobile maker is on the brink of failure. christine. >> bourse here looking a bit mixed today, a bit uncertain given we have the spanish bond auction coming up, so that's a key test of risk appetite. it's a mixed session across the region. take a look at what's happening in the greater china markets. pb

and employment in spain reaching a record high. figures show more than 5,600 people are currently out of work in spain. nearly 400,000 people lost their jobs in the first three months of this year meaning nearly one quarter of the workforce is unemployed. our madrid correspondent said the jump in unemployment figures had been expected. >> unemployment in spain despite the fact that it is hugely high -- this is the national office of statistics and said surveys of the -- a quarter of people who are part of the active working population are now out of work at 5.6 million in total. and if you look worryingly at the first-quarter of this year, another 374,000 people went out of work feeding into the perception that spain is in this downward spiral. it went into recession officially this week then standard and poor's sid said it has been downgraded by two notches. >> the disparity national lyrics what's going wrong with the economy? >> well, spain has two or three fundamental problems. it has a huge amount of private debt. a lot of that

the three biggest banks in spain have assets at 200% of spain's gdp. three biggest banks are only -- i use that loosely -- at 40%. the spanish bond market is sinking. the spanish stock market is sinking. spain, no offense to greece, portugal or belgium, is a real economy. how much is spain being talked about, if at all, on the floor of the cme? >> oh, of course. i enjoyed your guggenheim guest. that was a great interview. i look at the stock market. i look at the vix. i look at 10-year note rates. 10-year note rates and the vix haven't been the same since march -- no coincidence. markets are all moving to the same thing. i don't look at what's going on as a big deal necessarily in stocks. what was the catalyst is a big deal. listen. we all know what we did with the bailouts in greece wasn't a solution. it was a stability issue. the issuance going on in spain and indeed many parts of europe, maybe even japan and other developed countries, is going to linger. the horsepower of the global economy is in question. and these markets are going to have to deal

retail sales have fallen again, this compounds the spain for spain after their rating is cut bay another two notches. >> tokyo socks lob their worst april in seven years. central bank says deflation to continue until 2014. >> and it's gdp day in the u.s. first quarter data could so he the economy is still plugging along in a steady if unspectacular pace. >> and samsung electric ron he cans post galactic size profits powered by smart phone sales and calling for even further runs ahead. let's kick off it this half of worldwide with change with a check of asian markets. downgrade of spain and pressure he'ding measures by the bank of japan, all that putting it together. investors still staying cautious nonetheless. nikkei 225 down 0.4%, the boj move to boost asset purchases by double the amount failed to ease concerns about a fragile japanese economy, will particular market trading to the down side 0.#%. kospi up 0.6% all because of samsung electronics. shares at a closing high. record quarterly sales thanks to strong sales of the gallon lakts city smart phone. elsewhere, india says raiding

spain is a massive global borrower. and spain is a developed economy. and what's happening is more and more of the bric nations are recognizing that it's their money that's going to come to bail out the countries like spain, portugal, ireland, et cetera. demanding and quite appropriately so that they have more say over how that money is used and with what conditions and all that kind of thing. and it's reversal of roles really compared to what we grew up with. >> everyone without the so-called bric nations, the imf says it's well on its way to meeting its 400 billion target. will it come to a stage where it's a missed opportunity for emerging markets to have a greater role in helping out the recovery? >> the bric nations already are helping the global economy by sustaining very high growth. we estimate that asia alone will account for almost 60% of global growth in the coming decades. so with or without these contributions to this round of financing, the emerging market economies are already playing a major role in supporting global growth. and in retur

you know it's your currencies and you would have similar problems as spain has it. so as you as you're suggesting spain should go back to its software and currency but what about the issue of spain's staggering unemployment rate it might appear to some that it's just going to end up with a future of a younger generation with no work experience whatsoever. oh it's vital for spain to fight against this crisis and against an employment and give people an especially young people a new perspective but it's a real problem for as a spin government as good as was a good lease or. government can be done visit our currency because you need your own interest rates and you need flexibility from the exchange it's sometimes a currency has to devalue in order to push z. internal economy and give a better performance in the exports and all this is seeing. is elevated. economy cannot be done in a case of a monetary union a monetary union. is making any national economy to the slave of a common of common diseases and desertions from you or. and from other countries and so this is the

it might be but at the end they have they can print more than money they want just to bail out spain the question if it is a question is if politically it's possible to do that probably not so it might be impossible to bailout. politically what within the wider eurozone and also within the country itself talking about the instability saying that there are protests against the government cuts politically just how much could this government now suffer you know this government is suffering because there's some some small reforms. but it actually is not doing enough they do some austerity for the public sector but not enough and you have also to we have to see that those dirty for the public sector means girls for the products it. is already then the right way to go because many would say of course that is hampered growth and that's exactly what spain does need is growth. yes but it needs growth of the private sector not of the public sector so if you reduce government spending you give the private sector more space to breathe to grow of course there are that the spanish government is do

in spain, but the worry is now you have recorrelation between spain and italy.anish problem. the market is also telling that you italy should follow. so that is declining. >> italy, the net issuance is more compared to gross. >> hasn't spain done a lot of its issuance front loaded it? >> no, they've done almost half of the issuance for the -- >> for the year. >> no the year. which is very good news. but you still have half -- >> bid to cover 1.435. that's okay. >> yield higher than before. >> yeah, but the yield is trading in line a little bit lower than the cash market. so we could have expected that. >> what i really like is the curve steepened a lot in italy, so the short part of the curve was low, issue at the low rate. thousand it looks like the short part of the curve is setting up, so it means that the financial cost with debt service will go up in italy. >> when it's less than one, you go get your shot gun and you hide it under your bed. that's happened in the uk, happened in germany. these things have happened. and the market is scared that for some tec

things aren't looking good for spain. even if it,sh -- spain and italy.ther big bail-out, i think it is going to be a drag on the euro zone. it will be a drag on our economy. >> bret: a.b., spain, every analyst is saying spain is not greece but it is the fourth largest economy in europe. the 12th largest economy in the world. and essentially, as nina points out, it's in europe's eye too big to fail. >> i think it has some time. but it doesn't look good for the long run. as nina described, the situation with unemployment an the economy right now. it was in surplus in 2008. it went to deep deficit. government spending increased by more than 50% in a five-year period. it is not going to be able to reverse course well enough. and depending how the market reacts. we're looking at bail-out at some point. just a matter of win. >> bret: lagarde head of the i.m.f. is saying for government to directly bail out their banks with government funds sooner rather than later, charles. we have seen that here in the u.s. europe is looking at double dipping in some cases and

in spain, 8.5%. voters are losing faith in cutbacks and believe it is not the right way out of the crisis. it looks as if the game of dominoes is set to continue. >> the czech government survived a confidence vote. >> after a nine-hour debate, they back to the prime minister's government with 93 voting against. he had threatened to hold new elections at the end of june. his coalition collapsed last week and days of the biggest anti-government demonstrations in prague since the fall of communism. some governments around germany may be falling, but berlin has vowed come yet again, there's no going back on the tough strategy of cutting back spending. >> chancellor angela merkel says there will be no going back on the fiscal pact. she says it addresses the root cause of the crisis. >> this is a direct challenge to the french presidential candidate, hollande, who says he will reply get elected. -- rewrite it. >> the socialist party leader repeated his desire to renegotiate the fiscal compact. hollande say

bad news out of spain. a rally under way on the close in the back of those strong earnings, scott. >> that's right. amazon after the bell last night was good. >> blow without. >> the blue chip index closes above 13,264.49. get out your pens and pencils. right that number down. it will be a closing high for 2012. let's get a check on where the major averages sit right now. dow industrials 1422. that's a gain of nearly 39 points. nasdaq is strong today. amazon giving a boost to technology shares and the s&p 500 is in positive territory as well as this week winds down. >> we've got two names among the big gainers. amazon.com. sharply today. big move. it's amazing when you look at this quarter. it almost feels like the company is not focused on earnings but focused on revenue which is soaring. reported earnings of top estimates, thanks to the runway success of the latest kindle fire tablet. growing revenues substantially year over year. it indicates that strength in shopping on the internet and this biforcation

spain has prepared a minuisteril order.e'll have plenty more analysis on this story with an analyst who has downgraded repsol stock to sell. >>> repsol shares get tapping goed. an argentina reveals plans to to take control of the energy giant. and in spain, the government tests the water by selling up to 3 billion euros in t-bills ahead of an auction on thursday. >> india central bank slashes by 50 basis points, its first cut in three years as it looks to boost growth. and in the u.s., trio of top names report first quarter results before the opening bell. coca-cola, john stop sand johnsjoh john so that and johnston an goldman sachs. so just getting some of the inflation figures out here in the uk. office of fashion of national s. march cpi, up by 3.5% year on year. if you look on the month on month figures, that is up by 0.3%. office of national statistics saying the biggest upward pressure on cpi is coming from food, clothing, recreation and culture apparently. the core cpe pig for march, an increase of 0.4% on the month,

strong policy measures were taken, new governments came to power in italy and spain. the european union adopted a tough fiscal fact and the european central bank injected badly needed liquidity. things have quieted down since then. and one has the feeling that at any moment things could well get very bad again. so this very much shapes our forecast. based on our forecast as you'll see in a minute is for low growth in the countries especially in europe but with down side risks being extremely present. our baseline is constructed on the assumption that another european flare up will be avoided. but that uncertainty will especially in europe will linger on. it recognizes that even in this case, even in the absence of another flare up, there's still very strong breaks to growth in advanced economies. let me talk about those briefly. fiscal consolidation is needed, it is proceed iing about it is clear iweighing on growth. bank leveraging is needed but needed especially in europe not to a credit crunch but to a tight credit. in many countries particularly the united states

andy robinson from spain. i just want to ask you a couple of questions about the reference to spain here. you quote, although a slightly more moderate adjustment, the bert accommodated cyclical developments would have been preferable. i mean, that raises a whole series of questions. the first one is, would you have -- the original plan to tally the higher deficit? secondly, putting them into more of the terms i would use as a journalist does that mean that more harm is being inflicted on the spanish people than is necessary? >> no, i don't think there is a fundamental difference regarding what is the proper fiscal target for spain. spain is phafacing, one of the countries subject to market pressures. we think that the target is broadly -- yes, could have been perhaps a bit less ambitious, but not a fundamental difference. what is critical now is that the fiscal target is, is achieved. we think at the moment that we project i think a deficit what tha is somewhat larger than the official target. 6% against 5.3%.

there is concern about spain.lothing and building materials, garden material up 14% and my e-mail is clogged with comments, come on, just because they pulled everything forward from april to may the good is bad news crowd it's just the warm and the s&p 500 is only 3% from the four-year high and it was two weeks ago and a lot of water has been under the bridge and a lot of worries about the europe and s&p, still under 3%. there is no decoupling. there is outperformance and we're doing less bad than the rest of the world. the markets are indicating that right now. >> bob, thank you. you know, february borrowed from march. march borrowed from april. i mean, enough already. can you imagine what happens if gasoline goes down and you and i both know, bob, that we see brent peaking. if gasoline is going down, we're going to see another big move up in retail. >> this happened with the depreciation tax, too. everybody said, see what happened in january, it went down, moved the numbers forward and took advantage of the bett

which will only exacerbate its financial problems so the solution to spain has to be done now before things spiral out of control both financially and much more important politically that's all the time thank you gonzalo layer of the founder of we're a speech. selling the us to defense equipment to one of the world's most important democracies and that's how the british prime minister has defended his stock wealth in indonesia as part of his arms trade tour of asia and comes a decade after the country saw an embargo by the u.k. itself for using british jets to bomb civilians david cameron arrived in jakarta from japan as britain seeks to boost its military presence in the region all in china's backyard archies on preventive reports. selling weapons is quickly becoming what britain does best prime minister david cameron unashamedly town says the u.k.'s military hardware only he calls it flying the flag for britain it's seeking to become only the second country other than america to trade arms with japan not only big business but the chance for a crucial foothold in what's clearly the

that is the highest level in spain in 18 years. that means that more than five and a half million people are looking for work. spain has the highest unemployment rate in all of europe. >> the unemployment lines are getting longer. on employment reached 24.4%. reduce unemployment is at 54% and the government expects the figures to go higher. >> i keep looking but there is hardly anything. i am living day to day. >> the economy has been devastated. the banks are nursing billions in bad loans. the economy is expected to shrink by 1.7% while the government is having to cut its budget. >> at this time, we are living in one of the worst moments in the spanish economy. >> in spain needs bailing out, it will be no easy task. their economy is twice the size of those countries already bailed out. spain would severely test the rescue fund. the risk that the crisis could then spread to italy. across europe, a political backlash against austerity has started. this led to the collapse of the government. the favorite to win the french elections w

in the case of spain when we look at how spain sits in the whole eurozone sovereign debt crisis and the eurozone crisis in general, it was the decade long property boom which brought trouble to spain when that burst back in 2008. concern is now there's loads of toxic real estate assets on banks books that haven't been fully realized yet and when that comes to pass, that that could cause more problems which has prompted talk of the possibility of a bad bank being formed for spain. who would fund that, what does that mean for potential next leg down for the spanish economy. >> absolutely. thanks for now. we'll catch you a little later. joining you us global economist at citigroup and steven isaacs also with us the rest of the hour. give us your assessment of where spain goes from here, whether they can -- talking about segregating bank assets out, but not a bad bank wow one wonders whether they have the money to support further the banking sector. >> yes. well, the gdp ratings that just came out were a little bit better than expected as minus 0.3%, but the problem is the austerity measure

we have a big week next week with spain. obviously italy was okay this week with some of their auctions. but we look at the swaps. they are the widest they've ever been on spanish debt. how concerned are you about spain? are you there? >> i am. sorry. i had another voice in my ear. >> i have voices in my head all the time. do not apologize. my question to you is about spain. big bond auction next week. swaps are widening. how worried are you? >> actually, i'm not worried in the least. i'll tell you why. first of all, the reason that the swaps are widening is partly a reflection of strength. strength in the german economy which is by far the most largest and strongest economy in the eu. let's put it all into context. the italian bond auction went away fine this week. the german bond auction went away fine. and spain's auction went away fine. and yields only around 6%. if they stayed at 6%, then by 2016 their debt-to-gdp ratio in spain at these higher yields would still be lower than what america's debt-to-gdp ratio is today.

obama spent half a day in spain.ill not reveal the exact number citing security reasons which is kind of strange after the fact. joining us from boston a commentator on radio and new england cable news in for leslie marshall tonight and from fort worth, texas radio talk show host gentleman mean turner. what say you? >> well, i believe that, think of this scenario, americans are struggling, the head of the household. the husband and wife, they are being hounded by and bullied by creditors, they are unemployed. they can't afford the gas and the head of the household says, honey, why don't you go take a vacation to spain. and i think that obama -- president obama is the collective, is the head of the collective body of people and so is his wife who represents that. to take this vacation when americans are struggling especially with 2010 unemployment and the debt and the bullies being bullied by country incentive and lacks compassion and he is the steward of the people's money. >> bill: you think it's incentive in the cl

spain, more pain in spain. the spanish economy is just getting deeper. we saw on friday that spain reported once again rocketing unemployment pair of 24.4% continues to be the highest in the industrialized world. within half of spaniards and a 25 to not have jobs. we heard from standard and poor's at the end of last week which downgraded stains that appeared now we're talking about the eurozone's fourth largest economy -- downgraded spain. now we're talking about the eurozone's fourth largest economy. spain is back in recession. it continues in the property market in spain. that persists. and foreclosures continue to rise. the chairman deficit continues to reach were some levels. it is a matter of when they will need a bailout. >> the budget date deadline is here. >> yes. i will be talking about that in the world business report. labor organizations have released a report it as is, look, the employment picture around the world is very alarming. i will have more in the world business report in about 20 minutes. >> on the hunt for joseph kony. many struggl

and the economic blows rain on spain its credit rating takes another head while unemployment reaches a critical twenty five percent. and in business the markets here moscow have ended the week on a high as big corporate earnings so brazen sentiment turn in about ten minutes time i have to break down all the figures. it's seven pm here in moscow six pm in kiev ukraine and terror has gripped ukraine today with a string of bombings that have left at least twenty nine people wounded before successive blast hit public areas in the eastern city of near prepared throw off causing widespread panic several people suspected of organizing the attacks have reportedly been arrested let's get the latest now from our correspondent in the ukraine he's in the capital kiev alexei or service can you tell us what exactly happened this friday morning. in ukraine's interior ministry says that four bloss rocked the third largest town in ukraine is the city of. those war for explosive devices put in fresh bins at trying way stations it's interesting the attack loops are. coordinated because all those blasts

these losses are the result of new worries about spain, the economy and spain is in general. the government has been able to sell new bonds relatively successfully, which has been taken quite positively, but at the middle of the session in frankfurt, spanish shares went down sharply. especially banking shares dragged down the main madrid index to the lowest level since three years, and this also dragged the market's down. >> let's take a look at the market numbers. the dax down 0.9%. the eurostoxx 50 much worse, down. and across the atlantic, a trading for the dow jones at 12,918. the euro trading at the value of $1.4929. germany's biggest automaker is on the move. vw has introduced a new member to its supervisory board. >> the man who has a firm hold on the volkswagen. now he is adding his wife to the mix. >> as you can see from the order of business, i have proposed deep supervisory board selects -- i have proposed the supervisory board select my wife. >> the board controls the management of the system, and some shareholders have criticized the lack of independence managers

spain has been able to sell more bonds than expected, in an amount of more than 3 billion euros.t but not least, u.s. companies reported results that have been far better than expected. numbers coming from coca-cola and goldman sox gave a boost to shares and help to the dax turning. >> stefan wolff in frankfurt. checking up the market numbers for you on what was a surprising day. the dax doing wonders, up well over 2.5%. still below 7000. the euro stoxx 50 closing up even further, 2367. to new york, the dow jones is currently following suit, up 1.5%. over 13,000 points. the european trading in positive territory, $1.3142. back to that story we mentioned. the bank of spain has confirmed that the country fell back into recession in the first quarter of 2012. as we just heard, in another effort to save the country, the spanish government has sold off a massive chunk of short-term debt. >> however, interest rates were sharply higher to attract buyers, reflecting continuing investor concern over the country's finances. there is fear that spain's economic problems will reignite the eur

the pain in spain intensifies.n-year spanish bond yields rise to the high since early january in response to a disappointing auction of three, four, and six-year notes. >>> and in the u.s., the focus shifts over to the job market as today's adp report is expected to show another strong month of hiring in the private sector. >>> and premier wen jiabao talks tough on financial reform. he says the way to boost private financing is to break up the monopoly held by china's state-run banks. >>> all right. welcome to the program. just joined us at state side. plenty of data in europe that is moving asset prices. the latest of which is that eurozone february retail sales down .1% on the month as forecast down 2.1% on the year. forecast to be down 1.2% on the year. and the january sales were revised. so the retail sales basically declining slightly as rising unemployment really crimping consumers' spending power. but the key bit of data that we found out in the last 15 minutes has been the results of the spanish debt auctio

i don't think that's an issue in spain.they're export competitive. >> susie: we know the european policy makers have been demanding tough austert measures from greece and now from spain and italy and other troubled countries. i don't know if you saw paul krugman wrote an article saying what europe is doing is economic suicide by just pushing the envelope, and that this is going to have an impact that the whole world has to pay a price for it, this strategy of getting these countrys to do the austerity measures. >> is he right? >> that's a perspective, and widely shared by many people in europe, and the emphasis is on the countrys and fiscal adjustment, and i think there is a click saying that's at the expense of growth. we're seeing rumblings, and seeing that in frons, and the presidential candidate. who i think will -- the presidential elections, and clearly have concerns about one side of fiscal adjustment. germany remains ready to review that. the problems began with excessive fiscal policies essentially. >> let's just t

to spain. what do you think?has higher unemployment than greece, higher total public and private debt than greece. they had a bigger housing bubble than the united states. they have 50% of their banks were called casas and are unregulated, so they have a high percentage of subprime mortgages likely to hit. they have 13% of their workforce in construction versus 6% in the united states at the height of the housing bubble. spain's not coming out of this any time soon. they have one of the highest percentages of debt owed to foreigners. spain is going to default. the markets are in total denial on this. and it's a question of whether it happens sooner or later. another thing we noticed, rick, spain's ibbx 35 index broke below a major head-and-shoulders neckline that goes back to 1995, which shows that that market could weaken a lot more in the coming weeks or months. so yes, i think the next phase of this little correction we've had is likely to be deeper. it could be 10%, could be up to 20%. we'll have to see. but

spain hopes -- >> spain hopes its austerity efforts will make its bonds more attractive on capital markets. the strategy will be tested on thursday during bond auctions. but the 10-year bonds are already above the critical threshold of 6%. analysts believe such a high rate is untenable in the long run. >> and this was a shadow across the markets on monday. let's have a look at the numbers starting in frankfurt. the dax has locked in gains. eurostoxx 50 closing higher at 23.01. the dow jones trading higher at 12,958 points. and the euro stronger against the u.s. dollar. sudanese warplanes have bombed the u.n. peace mission during clashes with south sudan. 2 missiles struck a camp. know you win personnel -- >> sources say that no united nations personnel were hurt. the u.s. has condemned the attack and the japanese prime minister says he is concerned about the escalation of fighting between sudan and south sudan. >> we demand that south sudan withdraw immediately. we demanded that both sides engaged in negotiations to solve all the outstanding problems, including border disputes. use and vio

obama spent half a day in spain.l not reveal the exact number citing security reasons which is kind of strange after the fact. joining us from boston a commentator on radio and new england cable news in for leslie marshall tonight and from fort worth, texas radio talk show host gentleman mean turner. what say you? >> well, i believe that, think of this scenario, americans are struggling, the head of the household. the husband and wife, they are being hounded by and bullied by creditors, they are unemployed. they can't afford the gas and the head of the household says, honey, why don't you go take a vacation to spain. and i think that obama -- president obama is the collective, is the head of the collective body of people and so is his wife who represents that. to take this vacation when americans are struggling especially with 2010 unemployment and the debt and the bullies being bullied by country incentive and lacks compassion and he is the steward of the people's money. >> bill: you think it's incentive in the clim

this time it's for spain. and then perhaps we can lose confidence as we did at that time of year as well. >> you know what, you guys, two things to chime in on europe real quickly. david was asked about gold in europe today. he said we're seeing positive signs, including the restructuring in greece, which we feel better having that data point on the ror rise zon. at the same point, credit is being lost. i don't know if you lost credibility last year. >> it's not a unique idea, kate, is the thing. >> it's what they do. >> but the timing of it is interesting, isn't it? >> i hear the point that kate made earlier about the amount of money that goldman is keeping on the sidelines is even more powerful given what they are able to see as a market maker and presumably they are allowing to go short. >> all right. once again, we're asking, what does goldman know that we don't? >> thank you all. see you later. >> speaking of credit, stocks may be having the why aren't treasuries falling off more sharply considering the h

moment, spain is having a particularly hard time. the country's debt is piling up, banks are of money, and half the country's young people do not have jobs. the country has answered with harsh austerity measures, but the people in one village in catalonia thought that could not be the only answer. they had an idea thahas been causg quite a sti are beyond the borders of the tiny community. still well in the world. the sense of time is different here. miguel boras does what he has done for the last 50 years -- her goats. but it is a profession with no future. it does not p. >> most of the people here live from white goats, but every year, there are fewer. >> so what do they live from now? then what? the goats? >> no, the people. >> the people moved away to other villages where there is work. of the 2000 people we once had, we are now just 800. >> but now, the place is making headlines. local officials want to cultivate cannabis here to bring back money to the village. a cannabis users association wants to pay 1.3 million euros to grow

take spain, for instance. they are struggling and they are having to pay horrendously high interest rates when they want to borrow money in the markets. one look at the labor market shows things are getting worse rather than better. it was the beginning of a vicious cycle. without a job, it becomes difficult to pay your bills. what happens next? you lose your apartment. >> no evictions year, they chance. the police are nervous. they're due to be evicted from their apartment in the bailiffs are closing in. they are gathered upstairs. the couple has not paid their mortgage for one year. the stress has made monica sick. they have been given two weeks and then they are out. bu>> we build out an application for social housing but there is nothing for us. we looked at a few apartment but they are all too expensive. >> a few streets away, the same situation. they do not know whether they will have a roof over their heads tomorrow. when year ago, to recent emigrated from ecuador. >> this is what my children looked lik

spain will issue long-term debt tomorrow. that's going to be the key for the country after it creeped above 6% this week and also last week. meanwhile he says he plans to stick to target this year and there debt costs will cease. >> carolyn, lovely to see you. meanwhile they're hoping to boost the resources. they've stepped the plate to offer $60 million to boost its fire wall. they hope to help the imf in crease the fight against the eurozone crisis. it comes ahead of the meeting in washington. they want to top imf funds with at least $400 billion. let's get some reaction to this. simon is our guest host today. what do you thing of this the move to up the resources to prop up the imf? >> it's all encouraging. the one thing you have to remember is whenever the imf gets involved with lending you money, there's an awful lot of funds attached. spain and italy and the likes of them will probably be relung aunt to go to the imf more money. they'd rather keep it internal and then they don't have to follow through on the commitm t c

spain won't need a bailout.e same time as the spanish central bank governor confirming that spain is back in recession. it's likely that exports is the only positive contribution to growth this year. it just highlights the difficult job that countries like spain have in the euro zone. they have to get the debt and deficit levels down. regain confidence in the markets and balance that with weaker growth potentially. the imf saying if we see weaker growth they don't want to see further fiscal consolidation. it makes sense. where do you draw the line? simon? back to you. >> thank you very much. let's go trading the globe. we are up 130 points on the dow. the managing partner joins us on the program. good morning. >> good morning. >> it says you want to talk about the indian banks. i want to establish whether emerging markets are the place to be in an environment where stock markets are falling. the losses on emerging markets compared to near at the nyse are twice as big over the last month and twice as big again in