meanwhile, the e.c.b. ll allow the central banks to provide as much as 60 billion euros in emergency funding for the country's lenders. denmark's central bank cut its rate for the fourth time in a year. in an interview with bloomberg, the danish central bank governor said the peg would not be abandoned. >> euro and kronor are very close substitutes. but of course if anyone starts having doubt about the beg peg we will have an issue. we will do whatever it takes. there is no limit and we can go on forever. >> that is fascinating. anyone who has doubts about the peg, then we're going to have an issue. we'll talk about that in a moment. feels like a lot longer than that doesn't it? jonathan ferro is here with more. not a lot of movement in the numbers. >> no. just over 3 billion. could have been up by 100 billion. it gives you an idea how much they would have had to have spent to keep that cap. that is the reason we're talking about denmark. the governor of the central bank sounding like draghi with we'll do w

this is all about putting the pressure on greece to talk to the e.c.b., i.m.f. and e.u., the bailout runs out on the 28th. it seems they want to discussion an extension, but what the new greek government wants to do is talk instead to the various leaders of the european governments, rather than the troika >> if lending is not allowed to greek banks where are we at then? >> certainly we are much closer to a default. there are a couple of dates after the february 28 deadline for the extension of negotiating an extension of the bailingout. greece does have to pay back some funds to the i.m.s. over the next couple of months and in the early summer pay back larger funds to the e.c.b. many analysts think they can probably put together funds and pay back initial repayments, but certainly as we head into the middle of the year, it has become a little more difficult to anticipate that they will be able to do that. it is possible that the e.c.b.'s action does bring us closer to this crux situation where they may have to default. that's interesting in itself. you've got to

but the idea that the e.c.b. would actually think this is greece's money and not the e.c.b.'med the risk may not go down that well in frankfurt. frankfurt is where mr. hardouvelis heading today. they starting to hear a hard line from the german government. it is a big question of what greams does to finance themselves in the immediate term. they may have enough cash to get through the end of this month and then on further, but as hardouvelis said earlier, they are clearly playing the long game. >> we are going to be stabling our ideas to the eurogroup next wednesday as to how greece can be granted sufficient stability necessary to begin deliberating with our partners. by the first of june we can have firm new contracts between the european un, the uzbekistan, the i.m.f. the european central bank and greece so that the self-perpetuating crisis of the last five years can be put to an end and greece can stop being in the headlines of the world finance press. >> mark yesterday it was reported that angela merkel and the german government is bracing for a long-term negotiation. bac

from a european perspective, the par for the e.c.b., the depreciating currency, the depression of bondields and credit spreads is something we have seen in the u.k., japan and the u.s. it follows the rule book of how the q.e. program works. investors are not only looking at the pure fundamentalors growth but also about the impact that the q.e. is having on the eurozone. >> sweden denmark, not just the likes of germany. are you still working to pick up those government bonds? >> i would say look at the u.s. treasury market. from the u.s. investors perspective, they can get nervous in terms of below level treasury yields. it looks good value as well. i do think there is this degrees, an expectsation of further flow of funds, especially if we had language that would indicate there was some pop in u.s. yields. that there is a move in monetary policy. as we look forward through the year, it would not surprise us to see perhaps less attractiveness from a european bond market perspective and more attractiveness from a u.s. treasury perspective. >> the c.e.o. of europe and asia trust managemen

she is chief economist megan what is the e.c.b. decision to restrict fund thing to greek financial institutions mean. >> well, it means a lot of the borrowing that banks are going to have to do will be pushed into this emergency liquidity assistance program. so they will have to borrow at higher rates. if they cut off this emergency assistance then greek banks are in big trouble. but moreover, i think it was a political signal that the e.c.b. is putting pressure on greece tocks find an agreement with it's creditors. previously greece exits the bail out on february 28th that was the real deadline. they removed that by saying we don't think you are really a part of the bail out anyway. >> there is a sense that banks are looking shaky is the government able to help the banks. >> and how long will the money last. >> the greek government isn't really able to help them. it can in as far as -- as collateral for emergency lick wit pilot, but that's about it. the greek government is going to run out of money in a couple of weeks. but it can

we're very focused on it, and i think the policy actions the e.c.b. ound the remainder of the eurozone provide a pretty good buffer. you don't know how that plays out in the terms and conditions but i don't think it's -- it's not a near-term thing. despite the focus and volatility, it's a much bigger decision. we certainly think if you need to get to that point there will be many more stages to this particularly around the referendum. it's not so clear they have a mandate for greece to leave the euro. >> but if they have a mandate which is anti-aurs at the time, it's not going to be difficult to do the reforms. europe is going to say no way. they can survive the 28th of february the stay that is -- the spector for the greek economy, is that real, or can they give themselves a couple more months? >> it's hard to put a time frame on it, because we're not sure what tax revenues have been doing over the course of the last month or so, but we've been hearing those have fallen away some, so there's no clear line in the sand to say this date they're going run

i guess the question is, how are they dealing with this volatility? >> e.c.b. d the limit that they can draw from the emergency liquidity assistance program, another $5 billion, to a total of $65 billion. they still need access to the lines of credit. if they leave their bailout, if they leave the program, they're going to have much more difficulty having any sort of e.c.b. funding at all. remember, with those loans, that comes in at 1.55% where the normal the financing window that was closed off about two weeks ago, was much lower, basically jegjibble, like .05%, i believe. there's a big difference there. we'll see how the bank stocks react, especially to this g.d.p. number, which will include the debate here, right? >> it's a big miss, and it's going to affect them down the line. >> thank you so much. >> hans nichols with the latest on these renegotiations. >> which will be ongoing. greece continues to be a big conversation of course. in an interview with bloomberg guy hands, the founder and chairman of terra firma, questioned the argument about giving greece

the e.c.b. r example could say well -- >> easy to do. >> technically. >> the unanimous vote and certain countries. the spanish with the spanish finance minister was very tough on greece. >> it is difficult to do. yet it is unavoidable. you can continue to deny and we don't want to do it but yet at some point you cannot push a country in a democratic environment into austerity for the next 20 years. because that is -- the program really wants greece to be in. and that will lead to little upheavals. we have already seen some of these political upheavals. it is linked to austerity. if you go on doing this, what can happen in that country? right? so we should really start being realistic and say well at some point you have you to be ben even leapt and -- >> -- ben even lent. >> you're caught between the devil and the deep blue sea here. it is politically impossible for germany to undo the euro-zone. you're in this sort of situation. you these two really big issues. neither -- you don't want to say ei

after seeing the e.c.b., this is a key meeting with the germans. >> well i think this is the crunch meeting of the week. the german foreign minister was key to the bailout programs netted over the last five years with greece. key to the austerity programs applied in greece. germany, of course the eurozone. what germany wants, they get. what greece wants out of the meeting is support. support for an enormous public burden. including 275 million accumulated. they borrowed heavily to service the loans in a debt relieve to find a way back to economic growth. the finance minister is likely to find a tough opponent in the talks. he said he will not be financing greece by threats, throwing off austerity. they continue to adhere to the conditions of austerity as a way towards finding a debt restructure. >> we should see how the meeting goes. the germans, john are often - are often portrayed as being the main drivers behind the misfortune. how is it viewed from there. and the cost of government borrowing has already gone up. >> certainly at the moment the decision effectively from the quantitatively

the three institutions of the troika, the e.c.b., the european central bank and the i.m.f. have agreed these programs are the basis of any discussion we have. i've always said, i will wait for greece to come with a sustainable proposal and then we'll talk about this. >> the point angela made i think is right which is we never have guarantees that any particular course of action works. as i've said before, by the times a decision reaches my desk, by definition, it's a hard problem with no easy answers otherwise somebody else would have solved it and i would never even hear about it. the issue that you raid about can we be certain that any lethal aid that we provide ukraine is used properly doesn't fall into the wrong hands, does not lead to overaggressive actions that cannot be sustained by the ukrainians, what kinds of reactions does it prompt not simply from separatists but the russians, those are issues that have to be considered. the measure by which i make these decisions is, is it more likely to be effective than not? that's what our deliberations will be about. but wh

after a series of talks between greece and the foreign predators wore down will the e.c.b. it more money? germany, the main creditor, says only with strings attached meaning that athens must accept the austerity measures. greece is submitting its own request tomorrow looking for an extension to the current deal which, by the way, expires february 28. greece's new leftist government is gaining support. it wants to reverse the austerity measures. they say it's hurting the greek economy and society and if there is no deal greece still owes creditors money and would likely run out of the money next month. greece would be forced to print its own currency is leave the euro as a result. by most accounts europe does want gres to -- greece to stay in the euro zone. treasury secretary was speaking with greece's finance minister. he urged that time is of the essence and uncertainty right now is not good for europe jenna. jenna: not good for anybody. thank you very much. you can catch lauren on our sister network, fox business network. to find that channel, go to fox news.com/channel fi

the preinstitutions, the e.c.b. the european commission and i.m.f. have agreed on programs. these program are the basis of any discussion we have. i've always said i will wait for gross -- greece to come with a sustainable proposal and we'll talk about. >> the point angela made is right, i think, which is we never have guarantees that any particular course of action works. as i've said before by the time a decision reaches my desk by definition, it's a hard problem with no easy answers. otherwise, somebody else would have solved it and i would never even hear about it. the issue that you raise about can we be certain that any lethal aid that we provide ukraine is used properly doesn't fall into the wrong hands, does not lead to overaggressive actions that can't be sustained by the ukrainians, what kinds of reactions does it prompt want simply from the operatists but from russians those all have to be considered. the measure by which i make these decisions is is it more likely to be effective than not? and that is what our deliberations will be about. but what i do know is th

>> q.e. -- by the e.c.b. it should have a positive impact. impact zone in markets in other countries u.k., japan, u.s. over the following months it will have beneficial impacts on european exporters. who'll benefit offer the weak euro. we believe the greek scenario will end with a compromise because clearly there is too much a it stake. >> one of your trades, you have been short crude oil. you seem to have closed no that out at the end of january for an 18% return in dollars. that was clever. since then oil has been rising. was there a reason you closed out then? >> what does your crystal ball tell you? >> on oil we are looking to introduce a trade and -- the norwegian kronor. we believe it will have -- with the currency. >> that is interesting. if that happens, are we going to stop seeing central banks taking their interest rates lower and try to devalue their currencies? how many are with no snu -- are we now? trying to tackle the deflationary forces. brought about by the weak oil prices. >> i believe the whole q.e. will continue. the only

let us extend our holdings of treasury bills let the e.c.b. ve us 2 billion it is made from holding greek deck. it is a reaching arrangement isn't it? merkel does not seem to be biting. the french finance in us -- finance ministers seems to be saying, give them a bridging loan. will it be february were greece runs out of money in the loan erruns to its end? >> take the statements to parliament you are getting over the weekend in greece. they were real fighting-talk-typ e stuff. you are not going to get anything else. this is the first big boilerplate speech after being elected. they are not going to turn around and say we will not stand up to what we said we would do. the european wants to play hardball. they want to make sure greece toes the line. equally they have a vested interest in one greece to stay in the eurozone. a compromise has to be found. it is a very european way, this sort of public debate going on and using the media to have an argument, almost. and then they sit down and eventually come up with some sort of compromise. i think

you have real struggles elsewhere, europe deteriorating on an economic basis, the e.c.b. trying to help but it's much more than monetary policy. asia, much slower than a few years ago, china having come down from the highs in terms of economic growth so an enormous amount of money is coming to the u.s. which is creating another issue for the strong dollar and our multinationals. in terms of manufacturing because that really is one of the places for jobs. so what else can be done in terms of communicating and moving the needle on the federal government understanding to get congress and the president to understand these issues affect real people and the needle in terms of nick growth. >> we're specialists in blaming washington and that obviously fills up a weekend and beyond. but i think the quagmire here is reflective of the economic quagmire we're still in in this country and to talk about recovery and slower than before but are we back to sort of the situation as usual where the united states once again rules the world economically and we're not. and i'm from minnesota th

big bond redemptions at the e.c.b. are we going to be here again doing the same thing at the end of june? >> if not earlier. a lot of this is predicated on the view that it is going to fail. a few parliaments have to vote on this as well. in the short-term breathing space, then i think the finance ministers and the e.c.b. for that matter are going to be crunching the numbers how much in terms of contingency like it are they going to be receiving? a greater chunk of greek deposits, who'll be on the hook for any loss there? germany. it is going to test the tolerance levels on all sides. if there is no structural solution then it will get more interesting. >> you see the redeposition 3.5 billion in july. hsbc saying default risk remains -- do you agree with that sentiment? >> it has never gone away. there is actually a good deal. what greece needs is an outright haircut but that is not going on the allowed by the core european countries. the issue at hand is what does a favorable structural solution -- for both sides what