the world the house's proposal looks modest compared to the harsh cuts implemented recently in spain or italy. part of the savings are meant to fund a program of tax cuts for individuals and companies aimed at providing francis twenty economy and reducing unemployment. some of the more left leaning social with lawmakers have already threatened to vote against the plan when it's presented in parliament at the end of the month unless it's intended i don't mean to the media reveals of the police here in the upscale sit on the small hours to give instructions to systematically good swimmer families living on the streets. the news sparked outrage among some rights groups. on the heels of a report for singles from self criticism. christian into the river. this woman. one of the nurses most upscale district to bake her a bit of money. mike heard dozens of roman bakers can now be seen on the streets of the six thousand small problem with the local police station according to leaked internal memo d and nine personnel of the sixth on the small orchard to find roman family sleeping in the streets and sy

it's 8.7%, much lower than france or italy or spain or the eu average but it still do it and we're committed to get it down. >> thank you, mr. speaker. my constituent is to los loose s home after raising concerns about overcharging by solicitor. this solicitor from hell found a loophole by which he could soothe my constituent for complaining to the solicitor's regulation authority described it as morally reprehensible who say they're powerless to act. will the prime minister look at this case and intervene to stop the solicitor's running roughshod their regulators a? >> i'm happy to look into this case, as the honorable gentleman will no the regulators and the ombuds men which were improved over previous year, they are independent of government so it's not possible to into being directed but what i can do is arrange for a meeting between him and the minister for legal services to discuss what remedies are open to his constituent. if it would be helpful than absorbing put that in place. >> thank you, mr. speaker. the prime minister from pakistan is due to visit later this month. will be prime

lived in, if you have five successful recruitments of kids from places like london or france or spain or italythe united states, five, the chance that one of those kids gets through and explodes a device in someplace like times square -- that is a chance you cannot take. the problem i saw at the table. i sat at the threat table for 10 years. we met every day at the cia and the fbi. if one of those kids get through, you fail. you can have some success against the extremists in syria. i think the extremists are doing quite well. even if you do succeed, you live in a world or i did, where that small sliver of extremists who remain can have a devastating effect on a major american city. that's why the counterterrorism business is so hard. every kid you miscounts. -- every kid you miss counts. host: good morning. caller: i appreciate everything that mr. mudd is saying. i can't help but have an overwhelming feeling that you guys are missing the boat on a way to neutralize the anger out there. i think it is not right to continue the war on terror with excessive militarism. i think that you guys are n

story in the times detailing what is a high rate of unemployment in the likes of a greece or spain or italyt 13% and the creation of the long-term unemployed, something we've been dealing with here and what that is structurally. >> we mentioned at the top of the show the greek ten years below six, when drogy said whatever it takes, it was 27.6. >> it was. >> now 5 and change. that's insane. >> a malcolm x moment. >> it was. >> that's who first originated that phrase, malcolm x. i think drogy has done a remarkable job, i think that these bank are replenishing. we used to joke about you know what bank, i'm not going to say it, it's like a jeopardy question and your were king at jeopardy other than watson, there is a tremendous burgeoning move in the spanish banks and used to think they were the ones that were going to go under. the italian banks do not have necessarily the best balance sheets. we have to stop complaining. >> now a three-year budget approved by the cabinet. government functioning things going on. that's new. >> if you had you had gone back 2.5 years ago this would be fiction.

partner with the united states than you grain is, it's a bigger trade partner than the u.s., italy or spain, venezuela is an important country and has not been in the national conversation. >> i agree, and it should be in the national conversation. we are glad that rick scott found a restaurant in south florida. he has no foreign policy perrue and ignored many problems? south florida's economy. for him to find a sounding board in the president of the united states - i don't want to evade governor scott to nicolas maduro, but the depression in venezuela is deplorable. i have spoken about it, the fact that leaders of the opposition are in gaol is unpartedonable and -- unpardonable. the president of the united states has spoken about it. let's not try to find foreign policy ceds in a governor barely doing well for his own state. we are all looking for a venezuelan restaurant. i'm glad he found one. >> immigration reform, before you go - i know you have been on the front lines of that, what do you think will happen? >> it will pass. >> how soon? >> it's in the national interests, in the vital n

it is not yet -- egypt is not even greece yet for southern italy or spain, which are still struggling with in the midwest. so from the western good, we cannot judge from a perspective. i think there will be crisis. even between how much they'll keep islam are not keep islam and the constitution, there will still be a lot of debate. i am as an historian trying to say egypt went for a very difficult time well. now i can go out with the democracy forces by no means the end of the process. >> i want to stay with egypt for a few more minutes. you say in the book you make a recommendation for u.s. and western policy towards egypt now, which is in keeping very much at odds with what is our policy right now and with the prevailing wisdom is among most people who comment on the u.s. policy towards egypt. you say that we ought to step up aid and embraced egypt more warmly than in the past. >> absolutely. i am firm on this issue because i'm afraid if we don't think egypt is going to go into populism. but the strong leader, more influence. they're going to talk to other leadership in the world by

anyone who has been to ireland or france or italy or spain or greece recently knows that american middlelass do better. >> what about canada? we know that in the countries you mentioned they had a terrible economic crisis like we did. >> there are some scandinavian countries like sweden are doing well. canada actually is doing very well, carol. what's interesting, two points. one is i don't understand what this has to do with income inequality. the reason the middle class isn't doing well is because there is not jobs. there is not economic growth. when you don't have those things, you don't have the middle class doing well. it has nothing to do with the fact that warren buffett and bill gates have so much money. the other point i would make is canada has done a lot of the right things recently. they did not go off to this big spending and borrowing binge that we did in the united states in 2008 and '09 and '10. they balanced their budget. they're paying their bills. they cut their tax rates. we could learn a lot from canada on how to turn our own economy around. >> stephen says we can le

it's 8.7%, much lower than france or italy or spain or the eu average but it still do it and we're committed to get it down. >> thank you, mr. speaker. my constituent is to los loose s home after raising concerns about overcharging by solicitor. this solicitor from hell found a loophole by which he could soothe my constituent for complaining to the solicitor's regulation authority described it as morally reprehensible who say they're powerless to act. will the prime minister look at this case and intervene to stop the solicitor's running roughshod their regulators a? >> i'm happy to look into this case, as the honorable gentleman will no the regulators and the ombuds men which were improved over previous year, they are independent of government so it's not possible to into being directed but what i can do is arrange for a meeting between him and the minister for legal services to discuss what remedies are open to his constituent. if it would be helpful than absorbing put that in place. >> thank you, mr. speaker. the prime minister from pakistan is due to visit later this month. will be prime

not like italy or spain. nevertheless, there is our this inflation as well. yellen with her speeches today and tomorrow. we scoured the paper and the websites of this morning and let's look at our front page with alix steel. >> the first story is the traces in ukraine. president obama and russian president vladimir putin talking on the phone. obama telling putin to get the russian militants to leave the ukrainian buildings that they occupy. putin says obama should use u.s. power to prevent bloodshed. both putting the onus on each other. ukraine they are not protecting russian speaking citizens. dovetail is the idea of politics folded into the financial markets. you mentioned earlier they raised rates in ukraine. >> for the first time in about eight months. 9.5% from 6 point five percent. trying to keep it from trickling down to the financial markets. the don't understand how imf can provide significant funding when nine cities have in some form been taken over by pro-russian -- >> and how sustainable without any kind of structural change inside the ukrainian

this is no italy or spain.his is france. >> if you do not push the euro problem down, you could have deflation down the road. what does that do to these targets? it could be well out of their hands. if we fall into deflation, what happens -- >> it is still very exciting to leaders,airly young the new prime minister of france and matteo renzi, trying to get the act together for these countries. renzi is the youngest prime minister, fairly young, 38. >> 38 is fairly young. >> very diplomatic, jon ferro. >> going back to the bond market, this crisis is not over. >> it is not about the bond market anymore. >> the markets think it is over. 25-year-old, young, in any of these countries and you have been unemployed for a long time, that is the story. >> jamie dimon gave an interview and he is very worried about france. he says it is the young entrepreneurs. >> this is the potential to move from an economic crisis to a social crisis and that could potentially be more dangerous for years to come. >> as we have just been

the game but but i would say that you probably want to look more places like spain or are than this post to places like italy where they are only now beginning to implement the austerity and so therefore i think that there's still more economic adjustment to come germany's been a good story but it has actually run up quite a lot. so i would say it's interesting and then again you might have some interesting plays in eastern europe as the european union countries themselves start to recover more now let's take a look at you know the structural problems in europe what is the problem high government deficit or the so-called euro straightjacket what do you think. oh it's definitely the euro straightjacket i don't think i've never believed that high government deficits are our problem i mean you know this is become the prevailing narrative that has been explained is the cause for all of europe's economic woes but if you recall in the mid two thousand both spain and ireland for example had balanced budgets what the problem was there was that you had very very large prevailing levels of private debt which have subs

he's in trouble or germany dominating europe spain and italy. are in a mess and greece was in a big mess and i just don't want to walk out of the european union united states. has been exhausted with all this military adventures in various. still has a problem. on the economic side. jobs. democracy has become dysfunctional the separation of powers which on paper looks very good in fact making functioning of united states as an entity more and more difficult and also in terms of relations with the outside world so all countries have their own internal problems so if the west continued its force in international issue despite all the problems we're facing in. the big countries the continue to exert their influence progressively more and more on international affairs even as they tackle their domestic problems i don't see this as an i got all situation. where the brakes are also about to launch a separate financial development bank ever dreamed of countering the i.m.f. the world bank or the wall trade organization. no i don't think so. i don't thin

or 80 years, that the americans had a high percentage of people as college graduates and enrollment at universities, and having younger americans falling behind counterparts and being on the level with italy and spain, which is not normally the level that americans aspire to, is a shock. this is not the process starting five or 10 years ago. it's something that if you look at it, it has to start from way behind. >> could any of this be that the dollar is not as strong as in the old days, and the currency differences are part of the problem? >> no, in this study, what we do, we do the study, and you make comparisons where you take groups much people, and adjust for the cost of the basket, which they use. >> cost of living. >> you adjust for cost of living. that's why norway, which is expensive, if you compare their number, in normal dollars, they will be greater. because the cost of living is high, they get incomes that are reduced by 30%. on the other harningsd the spaniards -- hand the spaniards and italians get a boost. >> one of the things that the article in "the times" mentions, it's not a question of salaries, buts people in european countries have benefits. people in the lower middle class a

german and japanese creditor nation or state law they have a strong euro as britain's aest the termination of your purchasing power the us greece france italy spain and this is catastrophic the students. the twenty to that point you towards some of their economic dominance like enough is enough to be toothless thinking. in europe when in paris anger to start images is also spilled on the streets for the huge protest or does the stuffed a hundred thousand people came out to march against budget cuts imposed by the socialist government. the german babies in the french capital and not just was also in many people riled up that. these people near and far as to the states the french capital to demonstrate against what they say is the wrong direction being taken by the country when it comes to how it deals with the services admitted that most of the country's middle class and some of the teachers servants and read what they see as cousins that are being imposed on the us is giving me the and that being pulled toward a business that it was like. so basically we spoke to knew that things might not exactly why they come in. it's up to date with all the be

or was he trying to drive it lower? if he was trying to drive it lower, i don't think that is going to give a lot of guys in france, spain and italy the breathing space they are asking for. >> it did seem to get passive approval from others. the u.s., the japanese even seem to be going along with it. the fact that now europe needs a cheaper country -- currency. we see what that did to japan. these things maybe take a little bit longer to of all. we will get back to you a little later. let's get to our company stories. peugeot shares under pressure. the carmaker prepares to slash its lineup. caroline hyde has more. we are waiting. half past this hour we are going to get the plan. what is he going to say? ng his investors to take a punt on a pond. back in the race, that is the strategy. investors not buying it. shares are down even though he is already outlining the key target. ambitious targets coming from peugeot which is the french carmaker under a big restructuring after they lost 7.5 billion euros over the past 2.5 years. how is he going to do it? mainly by cutting costs. he wants to cut costs by about half a billion euros. he

spain has twice the unemployment than italy does. >> this raises the question of where the best values lie. guys, right? there are some that say emerging markets. >> right. >> even though you've had ten days or so of pretty sharp gains. others make the case that europe is the place to be. and then, i hear you still want to be in the us. >> for me and for our wealth management clients, i am still in the u.s. so what i look at, scott, for instance, and i'm not saying that gemma and stephen are wrong, but where i am with this, i'm looking at the broad market and saying the 1% correction is not getting me excited about getting in and giving broad market exposure to the clients. what i'm looking at is something like solar city, a stock made a 34% correction, or 40% correction. those are the stocks i'm looking at. not putting money to work in broad market etfs or sectors that, like i say, haven't made significant corrections. i think their call on europe is right. and for the ones that are the most liquid, i would trade those -- >> that's the most interesting question, though. have these momentum stocks -- are they back into a different phase, or will the momentum resume in a solar city, in a tesl

or distribution base, that was the strongest. i think that is a little simplistic these days. we have seen some structural improvements in some of the peripheral areas like spain, italy seen ireland really pop out of that and come back strongly. france, which was just on the news, is probably the area we are most concerned about. you have seen the least structural progress there. we try not to look at it geographically. we try to pick individual companies or sectors that are going to benefit. principale those sectors that you want to be exposed to? >> that is getting more interesting. we were in more defenses. recommending easing out of that and coming into some more cyclicals. think our going forward expectation is you are going to see oscillation there. it is not a one trade market. you are going to see some defense of pharmaceuticals or staples doing better. they might rotate into some more exposed areas. back and forth with the course of the year and going forward. because economic conditions are so weak you are likely to see a bit of oscillation around that tailwind of economic strength. overe of the big themes the past number of weeks has been technology. how d

the practice in russia, germany, italy, japan and spain and look with grave suspicion on the new deal. something has appeared that nobody anticipated, nobody wanted or nobody understands. this was written in 1942. they have called it the manage earl revolution. in the first attempt to understand it, more studies will be seen before the mystery is cleared up. we have something called x, which is displacing the system of free enterprise all over the world. if we do not know yet what to call it, we can at least describe its major characteristics. they include in most countries, and then he says free enterprise into x, the socialist, communist progressive idea and he goes on and list these things, again, this is 1942 and interesting, you can still find on the internet, mr. speaker, presentation about president obviously supportive obama group called "the road we have traveled." appears to be a clear takeoff from the "the road we are traveling," that was written in 1942. here's what is described as this new progressive ideal that we are moving toward that he was excited about in 1942 under president roosevelt. these characteristics of what they called x,

or he for spain. the reason that is important, the third biggest unit after france and brazil. the rest of the world, not looking quite so optimistic. italy a particular area of weakness. they say they are trying to change that in the near term. interesting information from china. carrefour was hit by foreign currency weakness. ys persistent falls in consumption is the trend they are seen. concerns for china going forward, but it is about foreign currency weakness. and france. hyper markets not doing so well. >> m&s coming out with figures today. it is about a third of the size of carrefour. they have had a much weaker baseline. >> he's desperately trying to focus at last, are we getting a ringing in the tills? they have been trying to ring clothing up to date. to likeout .6% like sales clothes. that is the first time we have ever seen the government's focus on clothes. usually it is general merchandise -- clothing homew ear. yes, clothing is the best in three years. a nice record numbers of dine-in for valentine's day. record chocolates and flowers for others a. but general merchandise -- growth margin is down. we have seen profitability

spain, in italy are getting very -- the 10-year getting very close to 3%. but it isn't like in the u.s. where rates are moving down necessarily for not a dazzling economy or outlived their usefulness. over there, it really is a distortion. and, yes, the banks of countries own their own paper. it's used as collateral. it gets recycled through the ecb. it might not be u.s.-style quantitative easing, but look at the ecb balance sheet. you almost end up in the same place. but the distortion is that is there really value in the paper of italy and spain when their banks hold it? it's down because of some of the manipulative issues, and ultimately it plays havoc with the high-quality spreads. whether it's booms against that paper or ten-years against boones, and that's why i say it will be difficult for u.s. yields to rise in that environment. now, let's say what the yield curve really is telling us. you know, in the old days, steve liesman, my hat's off, you did great charts today about the predictability of yield curves regarding recessions and the economy. it's simple why it works. when you have a yield curve that's pretty steep, what happens is the economy's

underneath financial stability the tectonic plates or europe are shifting in terrible ways condemning whole swathes of the of europe in two recession in italy in spain invariably the economies of those parts of the periphery while at the same time the whole of the european union has been buffeted by deflationary forces the europeans and the bank is doing absolutely nothing to counter now this chicken game this sordid chicken game between the european union and russia over ukraine is threatening to deepen these forces of deflation we have on the one hand and russia finding it very hard in the bond markets to refinance the debts of russian corporations another same time we have almost one hundred billion euros the european banks and interests have lent to russia so the longer this standoff between russia and the european union continues the greater the uncertainty in especially in the corporate sector of europe and russia of course that we will add to the deflationary forces that the as i said the european central bank is doing absolutely nothing to count that and which are making let's say italy's public debt and the lease especially northern italy c