let's talk about the ecb. seems to be there is an expectation that the market might cut back on the inflation forecast because of the assumption they have in making around oil prices when we last heard from them. super eyes today on mario. i don't think he is super today. recent events have probably pushed back inflation, given that the euro is about three and a half percent stronger. and oil is down about $15. on the other hand, the growth numbers have been moving quite nicely. i think he will need convincing that china as yet has had impact. i'm expecting the language to be fairly open, he will pick up the baton after the summer. any policy change would be a surprise. anna: i have a chart here of what the euro has done. what it has done against the dollar. has this been not much of a headache for mario draghi? some people were talking about whether we would get the euro-dollar, now we are up around 1.12. it seems like it was the beneficiary of recent markets, will we get ahead of the trend questio. >> he wil

all eyes on the ecb later today. more qe mr bond buying coming from mario draghi and a downgrade in inflation. suddenly, this appetite is out there. let's have a look at what is happening in metal. the volatility has avid as the chinese market shots. but victory parade, but no such luck for oil. president obama getting its approval it seems for the iranian nuclear deal. .7%.own by pompeii and was in the dollar gained a little bit against the rest of the currency. one dollar buying you for swedish currency. the number coming out of sweden later today. no change is expected for the europe is a little bit lower. i want to focus on some of the giving aboutngenta $2 billion back to shareholders will stop barclays sales is portuguese assets. jonathan: fantastic work. we are up by 1.2%. also up this morning. early moves for the markets here is what is coming up. -- will be talking with the ecb decisions. one of our guests sits a 40% shot at china flexes and markets take a breather. the political story takes his and stage. do

the ecb can respond. ing with a punch bowl filled to the brim and you are seeing that in market volatility. right now, a busy morning. let's get to top headlines. here is funny.

the ecb viewpoint was accepted by the eurogroup.ilar considerations were deemed not to be applicable to senior bondholders. as far as the measure is concerned, it has been excluded and will stay excluded. the second point is about a waiver. , the countrywaiver has to be in a program for financial assistance, has to so, has to it and show strong ownership and consistent and significant implementation. there will be some milestones that will be judged and assessed in the weeks ahead. based on that assessment, the governing council will take a decision. place, isver is in this enough to start purchasing bonds? we will have to look at other conditions. -- is the bond purchases that bond purchases cannot take place while a review is ongoing. second, there are timing limits. andnd, there are issue issuers limits. that have to be respected. finally, there has to be a debt sustainability analysis of the governing council. seen wela, you have have open communication. discovered were not by your investigative capacities. they were normally pu

investors eyeing the ecb meeting amid calls for the imf to consider further quantitative easing. >> syngenta returns more than 2 million to shareholders. the ceo tells cnbc exclusively he has not ruled out an m&a deal in the future. >> vivendi cuts the stock despite full year targets. >> economic woes so one side as it marks the anniversary of its victory over japan in world war ii. >>> hi, everybody. welcome to the show. glad that you're with us today. we have a lot to get to and i want to start off with breaking data hitting our wires. euro zone august composite pmi data coming through. the final composite pmi 54.3. that's a four year high. a lot stronger than anticipated. the highest since may of 2011. the final output prices 50.1. expansion is higher than the flash estimate and the july final reading. the highest since march of 2012. the euro zone final services pmi 54.4. higher than the previous estimates out there as well. they're looking at the final services employment pmi. sonnet-net we have the august business growth at a four year high although still slightly weaker than what coul

monika: the ecb keeps interest rates low. 've been talking about the fed interest rate, possibly a hike coming soon, but the international monetary and -- international monetary fund says the fed should wait as well. what is wall street making of that? reporter: wall street does not really like to get advice from the government and also institutions like the international monetary fund. the imf probably is not just concerned about growth in the united states, but if you look at developing countries, for example, a lot of that -- a lot of debt is in u.s. dollars. so the dollar increase would put the price tag of this debt even higher, so that is probably also one reason why the imf is concerned. wall street dealings are pretty mixed on one side. the markets lived pretty well with all the cheap money in the past couple of years, but if we would see an increased interest rate, that would also take some uncertainty away, so feelings are pretty mixed. monika: another connection -- the euro fell, making the dollar stronger. as far a

let -- fresh inflation with the ecb. t of the three options, an andease in the qe program, then just extending it, are they going to choose option three? leave this up in them -- with this open-ended? will extend the timeframe in which they are doing the asset presages. -- asset purchases. they could increase the pool slightly. but in terms of making big, bold changes. they cannot weaken the currency through the qe. that is unlikely. the political challenges will remain in place. most likely option is an extension of the duration of past 2016. that will not be a major surprise to the market. we are already discussing it now, 2-3 months o ahead of when it will happen. jonathan: there is a much bigger story in play here. looking beyond to 2016 and 2017, this idea of divergent monetary policies. will develop and a potent way? what are the implications of that? the wider implications for the fx market? policy: the monetary divergent market has played out in our view. 1.40.ro is at they said we would take the raw qe back in 20

jonathan: do we overstep the sensitivity of the ecb? is the fx that much important than the bond market in credit? vasileios gkionakis: these are basically 2 questions. how does the ecb perceive what is going on into the fx market? him. glick, the importance of the fx channel -- him. ically, the importance of the fx channel. it is lower now. not only capture the expert side. i do not the ecb, think it has a particular level in mind. what a maybe worrying them is it the depreciation. whenever you see a sharp higher in the euro, these guys step in and make noise. jonathan: i have to ask you about degrees. i was asking a -- ask you about degrees. -- ask you about greece. austerity in greece or something more political? vasileios gkionakis: it will always be about austerity. people do not lie fiscal tightening. think theretime, i was definitely an element of -- people showing their opposition to the previous .olitical party in greece having said all of that, obviously the outcome showed at the polls were a disaster. and i do not think it's r

the market turmoil. we will have live coverage of that ecb meeting. in the meantime we're in rally mode up 1.8% for the xetra dax. ftse 100 up 109 points in today's trade. commodities a big part of the story. >> i'm getting ready for the ecb special which i know you'll be watchi watching. commodities not to ignore. silver higher and gold lower and then you have brent over here. a tad higher. big swings over the last couple of sessions and it seems now people are focused on the non-farm payroll data that is due out tomorrow so that should be a big one because of course we're hearing that the fed is also looking at the data, right? so this week's nonfarm payroll data. you have the pound against the dollar weaker and the saucy dollar down by .3% against the green back. stabilizing following the weaker chinese data which is closely linked to the aussie dollar performance. the issue is whether or not we'll see enough of an unwinding for there to be this move to buy into the euro or the yen or whether it's a temporary unwinding. the euro dollar flat to highe

our top story this morning, the ecb. x months into its extraordinary economic stimulus program, and the central bank has revamped its policy, david is here. what does this mean? avid: what has caught everyone by surprise at what -- was revamping the kiwi. ist means what it signals that since that press conference, they are ready to do more. it is a distinct possibility that this time next year, we might actually still -- or the ecb might still be in this extraordinary stimulus program they are in. the surprise was that they did decide to increase the share limit to 33% from 25%. in other words, it addresses the earlier problem that there was not enough funds for them to buy up and there were problems of liquidity. it is a half step. it is not the expansion of the qe program. it is a recalibration. more importantly, it also signals the underlying fundamentals have deteriorated. they have cut growth forecast. there will be no inflation he said over the next few months. listen to how he phrased this. we may see negative numb

gold headed for the biggest decline in a week on the ecb news. it is down nearly a full percent at $1123 and $.30. $1123.30. bond markets i believe are still holding onto those gains they saw as well. the two year yield is down, as well as pretty much across the curve, maybe partly to blame when we knew -- normally do not pay that much attention to jobless claims. we did see claims rise to an eight-week high. a little bit of volatility as we are rounding out the summer. in the currency market, that ecb moves a big factor in the euro and the decline to a two-week low. look at this deep drop right at when the news came out the sunk on the back of the revamped program. european central bank has cut its forecast for growth and inflation through the next two years at a news conference today in frankfurt. mario draghi said the euro zone economy will road just 1.4% this year. he also revamped quantitative easing measures. overall the monetary policy measures we have in place since june 2014, we have clear support for improvements. mark: there has been sp

and the secretary-general of ecb. at his take on the 2016, right after the break. ♪ mark: let's look at what is happening in equity markets today. it's stocks are dropping, it looks like last week or the european stock 600. it was a mirage. one point 6% lower today. the ftse is down by 1.6%. the dax 1.7%. everyone is focused on the big release, 11:30 local time, the u.s. jobs report. will it be enough, whatever the figure, to change the fed's mind on interest rate policy when it announces is decision on september 17. some say even if we get three hundred thousand it does not matter because the fed will not hike rates. that is the discussion point of the day. china closed for a second consecutive day to commemorate the end of world war ii. i will leave you with pictures of the u.k. prime minister david cameron. he is in lisbon addressing the migrant issue. cameron: we have provided 900 million pounds in aid to help those affected in syria and the region. ♪ this is a great place to work. not because they have yoga meeti

francine: inflation in focus as the ecb meets in frankfurt. mario draghi will address market volatility. manus: chinese markets on holiday. stocks get a breather as the country commemorates the end of world war ii with a massive military parade. francine: the latest report says risk to global growth have fed should the remain data dependent when it comes to raising rates. welcome to "the pulse" live in london. onus: let's check in breaking news. composite. eurozone pmi comes in 51.3. mark: the compass i -- compass it is the manufacturing report. the services has just crossed. this is the final rating for the month of august. 54.4. the survey estimate was 54.3. the prior reading was 54.3. services has come above the previous estimate. as a result, the composite has come in ahead of estimates as well as 54.3. so, it is a good piece of data for mario draghi to get his head round as the ecb meets today to discuss policy. later, to discuss his plans for q.e. investors will want reasserts -- reassurance the ecb is willing to expand the q.e. program,

and the euphoria from the ecb fading in the u.s. as attention turns to the all-important nonfarm payrolls. jobs data -- how much should we care? is it aeration a matter what? 217,000?pass -- is it a bearish market my matter what? as global market falling off a cliff? in damnedesty do they don't. the euro staying pretty flat. damned if they do, damned if they don't. we would get an update for you. it was up by almost a percentage point and today we are r emaining at the lower level. a look ato having whether dollar is trading ahead of nonfarm payroll. on a two-day basis we were up yesterday and just correcting ever so slightly. let's have a look back at the one day chart. the euphoria is seeping out of the commodities market but yesterday we saw them all moving higher in today all off by more than 0.15. islly the risk aversion spilling into the commodities market as we get concerns about growth globally and, indeed, whether the u.s. could really raise rates. we're seeing money going into u.s. debt, german debt, risk bondion good for

meanwhile, the ecb announcing a revamped qe. draghi saying the bank will increase it to bond buying program. he added that risks to both remain -- china, refugees, and emerging markets will dominate turkey. talks in in a statement, the group's monetary policy is tightening. let's have more on a crucial jobs report out there today. the last main data points before we see the policy meeting later this month. > ebola ron washington will be shutting down for the holiday weekend, but at least one piece of news will grab everyone's attention -- the august payrolls report. it will mark the last piece of economic news before the september economic policy meeting. it is considered pivotal as the fed weighs whether or not to raise interest rates. above 211s that the thousand jobs gained each month this year. the number is considered increasingly important. in the u.s. that have been a series of positive economic reports in recent weeks. been, global markets have roiled in uncertainty over china's economy. the payroll survey cover the week

so the ecb and the u.s. jobs data will be the two key words for the trading for the rest of the week. but for now, that's it from me. back to you, ramin. >> the ecb sand the jobs data, mayu, thank you very much. >>> now, more than 20 million cats and dogs in japan are kept as pets. and they're taking on the same importance as children in the lives of many of the owners. in the first installment of our two-part series in trends in japanese pet care, we'll look at some of the steps that companies are taking to help people keep their cherished companions in top form. >> reporter: at this gym, some of the customers look a bit unusual. it's a dog on a balance ball. a dog swimming. and another, learning to jump over a hurdle. this fitness center for dogs opened last month. this lady comes here once a week. her dog lives indoors. she wants to make sure he's getting enough exercise. an expert in animal fitness consults with the owner and draws up the customer's program for each dog. she wanted him to get used to wat

the ecb cutting off the car maker refusing to buy loans from the finance arms as rumors suggest maybe the company has known for years of the emissions chief. >>> separatists declare victory but do they really have a mandate for change. they fall short of an outright majority but win most seats in the parliament. >>> tieup talks are term nated. vodafone has ended talks with liberty mobile for an asset swap. >>> cheers to s.a.b. miller. the shares jump when $106 million could be paid for the brewer. >>> let's kick things off with our top story. two reports other the weekend say volkswagen already knew about the i will legalities. in 2011 a vw technician pointed out unlawful practices. the question is though what they knew, when they knew. we also, by the way, have a new volkswagen ceomathias mueller taking over volkswagen. the former chief executive of porsche says he vows to get to the bottom of the scandal. >> this is interesting, susan. the ecb is no longer including loans as part of its bond buying program according to reports. also want to show you what shares in vw are doing this

if we see a negative print for the euro area will the ecb worry or not? on't think they'll worry just from one inflation number. i think markets might become concerned but that in itself could have knock on effects to the european central bank if you look at market based measures of inflation expectations. you're looking at something like the five year five year measure that's already heading down toward 1.5%. it's a 7 month low and that's what the ecb gets concerned about from the points of view of ingrained expectations of low inflation. >> we'll have to leave it here. thank you for your time. chief economists at investec. >> the u.s. senate will vote 10:00 a.m. eastern time on the bill to fund the federal government through to december 11th. this is a stop gap measure which does not go after planned pas parenthood and should pass with a simple majority. the house should pass it by the end of this day and that avoids a government shutdown at midnight. the house is also scheduled to vote an an amendment to defund planned parenthood but that's not expected

now the possibility of further stimulus by the ecb made global investors more optimistic. ropean stock prices rallies and u.s. shares rose as well but ended off the day's highs. the dow inched up to close at 16374. for more on the markets let's go to mayu yoshida who is standing by at the tokyo stock exchange. what can you tell us of the last trading day of the week here is just about to kick off? >> good morning. we're seeing recovery and china is clearly the most important thing behind the trends we're seeing in the markets right now. but dovish comments from draghi increased sentiment. all eyes will be on the key u.s. jobs reports. let's see how tokyo markets are opening this friday morning. stocks are opening mixed. the nikkei is opening in the positive 18177, but the topix opening rather flat. now, it's been a tug of war between the bulls and the bears this week, as we can see there. on wednesday we saw the nikkei drop more than 5% from last weekend. we're seeing some recovery and losses right now. smaller but still heading for a weekly loss. now china's closed for now

the ecb cut its forecast for growth and inflation for the next two ears. conference, mario draghi said the euro zone economy will grow just 1.4% this year. he also revamped quantitative easing measures, which he says have kept the economy growing. draghi: overall, the measures we have put in place since june of 2014 provide clear support for improvements both in borrowing conditions for firms and households and in credit flows across the euro area. olivia: there has been more speculation -- the biggestcing military cuts in almost two decades. the world got a look at china passes military might during the parade today. said he cut 300,000 soldiers from the 2.3 million strong army. stephen engle file this report. >> i'm reporting outside in the heart of beijing where the parade is literally rolling by here. have the artillery of the people's liberation army as they celebrate the 70th anniversary of the ending of world war ii. to showhis opportunity his grip on the military but also to show unity to the chinese people. this --ion to beijing, he is also sendin

tom: substantial headlines from the ecb. greece in the necessary programs.avor of austerity in athens? the ecb comments are very important and substantial because we have a bank review by the ecb. it is meant to finish at the end of the year. we have a recapitalization of the bank that needs to happen. qe good flow, the only if the reforms are implemented. it is expected to contract by the end of the year, employment is around 25%. there are reforms, but any coalition will be very painful for the greek people. brendan: the other political story of the day, and the political story of the year, is the refugee crisis in europe. we will bring in hans nichols in berlin who has been following this. a new route opened in croatia they are already feeling overwhelmed and shutting down their borders. does the european union's leadership have a handle on this at all? hans: they knew not -- they do not have a handle on the numbers. the numbers are out of date. they do not know how many will be arriving, and how to emigrate them in -- integrate them into society. the pri

s&p up 10 handles as debate on the ecb. lauren: asia not looking too shabby either. hanghai and hong kong looking better today. japan's nikkei up half of 1% prefer 1%. first tries in four days. nicole: stocks open higher with further easing in what everybody's looking for. the ftse, cac and dax all looking up. lauren: absolutely. some weakness however. crude just turned slightly to the downside to $46.17 a barrel of $1130 per ounce. nicole: here's how it traits against the currencies is seeing strength in the pounding canadian dollar against the u.s. dollar. by the way, the dollar hit a six-year love to keep in mind. lauren: leche is a yield of five basis points. 2.19%. welcome to "fbn:am" from your first look at what's living in today's markets. we have the latest breaking news and what to expect your day ahead. nicole: former hillary clinton chief of staff at the state department, cheryl mills will be questioned by the house committee today. meanwhile, a former aide to clinton plans to invoke his fifth amendment right not to testify before the committee. brian pagli

at the ecb.y had sliding commodity prices, rather than confidently addicting a gradual rise in --wth and inflation the ecb that was the plan. acknowledged the outlook has deteriorated. >> based on our economic analysis some of governing council decided to keep the key ecb interest rates unchanged. 2015, theith june projections, the outlook for real gdp growth has been revised down. we expect the economic recovery to continue, albeit a somewhat weaker pace than earlier expected. reflecting in particular this slowdown in emerging market economies which is weighing on global growth, and foreign demand for exports. the council wanted to emphasize in the discussion today it's willingness to act, it is -- its readiness to act, and its capacity to act. anna: let's get more from our guest host, paul donovan. rejoicing -- reducing growth forecast, is this the ecb just catching up with forecast already out there? or is this a signal of a weaker environment? paul: on the forecast site it is catch up. we don

. >> quickly before we go, dovish comments out of the ecb. reiteration from the imf that global growth is weak. does that mean that the fed would risk an even bigger decoupling so to speak? if they were to raise rates in two weeks? >> i still don't believe they should do it however i will tell you, these are unconfirmed rumors and the watering holes of wall street. that they're serious enough about it to hold conversations with the primary dealers, the people who trade in treasuries. asking what do you think would be a negative consequence if we did it. so it sounds like there's certainly considering it. and are concerned about it. if those rumors are correct. >> i would trust the people in your watering holes, that's for sure, art, art cashin, we appreciate it. >>> happy 20th birthday to ebay, we'll tell you the first thing ever sold on the online auction site. no, it wasn't a pez dispenser, and stocks in the green again today, the dow up better than 150 points. next big driver for today's auks action will be the close in europe. no student's

jonathan: what would it take for the ecb to step it up? ask paul gordon who joined us from frankfurt. where are we now? we spent the last couple of talking about the prospect of more qe. did he push it further down the road? l: as noted, he said time is needed to look at the data. we will perhaps get more clues tonight. to beuld expect the line we are ready to act, and willing to ask. look, the key thing will be inflation data in particular. over the coming weeks, we get the september inflation data just after the end of the month. interesting to see if that is slowing. so, should we weaken at that point, that maybe when they say ok, let's err on the side of caution and step in. float overn trading in frankfurt, working out exactly what the ecb can and cannot buy if they want to boost stimulus. where are we on that debate? let's do the will day, and then what can they buy? paul: all options are on the table. pastan extend the program september 2016, you can broaden it to include the elastic classes, or up the monthly amount. you spoke to t

what the fed decision means for the ecb in the boj. later, greece -- the second election this year. we are live in athens as political parties wrap up their campaigns. ♪ the federal reserve sidestepped the opportunity to raise rates for the first time since 2006. here is fed chair's janet yellen's news conference in 90 seconds. >> the central open market committee reaffirms the current target range for the federal funds. july,the committee met in the pace of dropped gains has been solid. the unemployment rate has declined. an overall labor market condition has continued to improve. islation, however, continuing to run below are a longer run objective, partly reflecting declines in energy and import prices. we still expect that the downward pressure on inflation from these factors will fade over time. recent global economic and financial developments are likely to put further downward pressure on inflation in the near term. the outlook abroad appears to have become more uncertain as of late. heightened concerns to back growth in china and other emerging market economies have led to n

the market is assuming the ecb will do mark qe. translate into the real economy and equities remain under pressure. andrew: europe is in a tough spot. we've had the benefits of the lower energy prices. those benefits are going to wane into 2016. the market is expecting an increase in quantitative easing and maybe an extension of that. the real question is how much impact does it have on the real economy? transmission mechanism is via the era. if the euro were to appreciate, that would cause the ecb consternation. francine: thank you so much. stay with us. we will be talking about japan next. that conversation brings us to today's twitter question. do you believe janet yellen on a 2015 rate rise? tweet me at @flacqua. hashtag #thepulse. u.s.e said to be under antitrust scrutiny. officials asking whether the tech giant stifled competitor access to the mobile operating system. google shares are down in premarket trade. volkswagen's board expected to name the successor to martin winterkorn today. 27 u.s. states have begun a joint invest

john, what are the policy options available to the ecb? : you can increase the size of the program, and become an asset program and you buy more sovereign debt. can extend the program that is supposed to end in september 2016. the problem with increasing expanding the program is that it is being priced into the market. will they have any kind of decent effect if you want to increase the size of the program, then the question arises once again do you have the will of assets available to availablel of assets to do that? rates, hasgative monetary policy been exhausted? the bottom line, i hope to come out the other side with a little bit of currency. mark: we look forward to hearing about that, see you later. commodities rout, seeing a sell off slumping, chinese pmi hitting a low, glencore shares hitting a low, but they are slightly up in this session. caroline: asia is where the rout is still continuing. asic -- theheb basic resource area hit worse than expected. no manufacturing improvement in six months. a downward they in asia, and europe w

the ecb pledges more easing as needed. this as the former greek finance minister tells cnbc that mario draghi is trapped in an ire cage. >> the central bank of europe is a paradox. on one hand it's extremely powerful. on the other hand it's utterly powerless. >> vladimir putin shrugs off the sharp fall in the oil price but how much of a threat is the china slow down? we have the prime minister later in this show. >>> welcome, everyone to the show. it is one of the most critical jobs reports in recent memory. this could be the number that decides whether the fed will lift off or push out a rate hike this month. economists are expecting another solid month of hiring. forecasts call for 220,000 in non-farm payrolls versus 215,000 in july. august tends to be quirky. numbers are inaccurate as many people are on vacation when the government conducts it's survey but a very important number. >> i wonder where it's going to fall when investors take it as this means september rate hike is there. tweet us with your prediction and wher

we think that the ecb will be dovish tomorrow. think that the fed will not be as bad as it seems but medium term fundamentals still remain poor. >> thank you very much. >> stick around. cross atlantic dealing. could ge be on the verge of ceiling it's $14 billion tie up with alstom? stay tuned to find out. try the superior hold... ...of fixodent plus adhesives. they help your denture hold strong more like natural teeth. and you can eat even tough food. fixodent. strong more like natural teeth. fixodent and forget it. . >>> stefen is in paris with more on this. so it looks like it's going to go ahead stefen. >> absolutely but for the time being alstom denies or declines to comment on the report and will still wait for the decision by the european commission due by september 11th. that's the deadline. according to the financial times they're close to a deal with the european commission and should get a green light very closely. disapproval would come after they agreed to make some concessions. they didn't say precisely where these con

-- you look at the ecb. low,a: bond yields are so spanish tenure is less than the 10 year in the u.s.. -- spanish tenure is less than the u.s. 10 year. market turmoil did not keep the biggest part of the u.s. economy from moving ahead. the service industries closing matt growing at the fastest pacn a decade. it makes up 90% of the u.s. economy. everything from farming to retail to restaurants. the european central bank has cut its forecast for growth and inflation through the next two years. draghin frankfurt, mario said that the euro zone economy .ill grow 1.4% this year he revamp plan to measures which have kept the economy growing. the monetary policy measures we have put in place since june of 2014 provide clear support for improvements in borrowing conditions for firms and households and in credit flows across the euro area. olivia: there has been speculation that more stimulus is on the way in europe because of a slowdown in traits. -- trading. brendan: the kentucky county clerk who refuses to issue mar

we are definitely expecting more qe from the ecb. tom: francine will join us in the next hour.ncine: looking forward to it. thank you. croatian police are saying that 30,000 refugees have entered the country since the surge started several days ago. the influx began after hungary shut its borders, forcing people into croatia. the u.s. secretary of state says there can be no solution to the problem as long as bashar al-assad remains in power. he pledged that america would do more to help. >> i am pleased to announce that today, the united states will significantly increase our numbers for refugee resettlement in the course of this next year and year after. last year we were at 70000 and we will go up to 85,000, with at least -- that is a ceiling, not a floor. year fromr the next syria specifically, even as we receive more refugees from other areas, and in the next fiscal year, we will target 100,000. with syria's civil war sending tens of thousands of refugees a straining towards europe, it is easy to forget that the vast majority are being hosted by neighboring countries. jorda

the ecb can respond. tom: it is everything with a punch bowl filled to the brim and you are seeing that in market volatility. right now, a busy morning. let's get to top headlines. here is funny. is promisingnping to work with the u.s. to fight cybercrime. he was in seattle speaking to american business executives on the first stop of his u.s. visit. he said china was a staunch defender of the cyber security. >> the international community should, on a basis of mutual respect and trust, work together peaceful, secure, open cyberspace. china is ready to set up a high level joint dialogue mechanism with the united states on fighting cybercrime. obama administration is likely to be skeptical. the u.s. has accused china of being responsible for massive cyber attacks on government agencies. with has signed a deal boeing to build a 737 completion center in the country. it will be boeing's first facility of its kind outside the u.s. buy 300s agreed to jets. on the first full day of history to the u.s., pope franc

the ecb willid, actually use words, and the japanese lee's actions. eurogroup's meeting in luxembourg so we will follow that closely and talk about oil next. ♪ great time for a shiny floor wax, no? not if you just put the finishing touches on your latest masterpiece. timing's important. comcast business knows that. that's why you can schedule an installation at a time that works for you. even late at night, or on the weekend, if that's what you need. because you have enough to worry about. i did not see that coming. don't deal with disruptions. get better internet installed on your schedule. comcast business. built for business. francine: welcome back to "the pulse," live from london. manus: let's get you up to speed on the top headlines. the yuan traded in hong kong set for its biggest weekly advance since march despite giving up some ground this morning. the week's game came as they were taking the unusual step of maintaining currency support measures to the offshore market. it is the latest in a series of extraordinary moves aimed at stopping capit

what to expect from the ecb press conference. >> greece is no longer on the agenda. happened,eeting, what and what is the situation today. greece was right on top of the agenda. that is no longer in the play. ,hat we have now is euro which was dropping has brought back up to 112 113. secondly is the inflation part of the equation, it is very important. mario draghi needs to knock that down if you really want do something about it. the reason, as you said commodity prices are dropping. the reason for that is oversupply in the market. they are drafting that, opec or not opec, that is the question for debate. inflation, you will see inflation carry on from this commodity price. >> let's see how the markets are shaping up in europe ahead of that meeting. a pretty optimistic day on the european market. there are all important comments from mario draghi, hoping for pledges of more support. looking at some of the companies moving the markets today, shares jumped by 5% after the low-cost airline reported record -- record passenger numbers. it rates its profit forecast of amo

we just told you about the ecb, but what about the fed? the odds for a september rate hike held study with investors thinking it's more likely time for an increase. joining us is torsten slok and dean baker. you say that volatility makes now the right time to raise rates. why? torsten: there are many things that go into the decision of when is the right time. but once they get going, they don't want to tighten financial conditions too much. that is why it may be a good time ironically to do it when markets are saying we don't really know if the economy is strong enough. but if the fed has the confidence, this could be the reason to go into september. david: do you think the timing is right? dean: it is an interesting argument. i would have to say that volatility makes it to my mind less likely. on the one hand, how does the market react we haven't seen a rate hike in eight years. what is the immediate reaction? second, what is the underlying state of the economy? the drop in the euro is going to worsen our trade deficit -- that doesn't loo

they are concerned that if the ecb does more on that, it will send the wrong message. : the ecb has toat. there is not a whole lot they can do, to be honest. from a financial markets perspective, it is something that is always watched and spoken about. the divergence has not become impair onh to start confidence. there are risks going forward. there is a real problem at the core of europe and that could become an issue for investor confidence further down the line. perhaps it is to the bond market, you would start to see investors becoming more and more concerned because of the unsustainable levels of debt. compare and contrast what the ecb does next and what the bank of japan does next. derek: i mentioned earlier that mario draghi did a good job. rhetoric, don't worry, we will reach the inflation goal around september 2016. when you look at the growth figures and you look at what is happening in commodity prices in terms of the currency, there is a real risk the markets come back to asking the very broad fundamental question, what is abe-nomics? became prime he minister is up 1%. in g

draghi also said stimulus is intended to help get inflation back toward the ecb target of just below . the program is slated to run at least through september, 2016. and hungary's railway company says it has suspended all train west of the capital because of the migrant crisis. officials say it is for security reasons. more than 3000 refugees are currently camped outside the train station in budapest, many of them from war-torn syria, trying to get into western europe. marketre at home, turmoil did not keep the biggest part of the economy from moving ahead. service industries are moving at close to the fastest pace in a decade. as according to the im nonmanufacturing index. this sector makes up almost 90% of the economy, including everything from farming to retail to restaurants. verizon will add mobile millennia for about $250 million, the latest acquisition aol has made to expand its presence in the market. bloomberg spoke to the ceo, tim armstrong. >> arm -- online is switching to mobile, and in the business is that we are in, we are able to turn aol around, do a verizon transactio

investors can focus on matters closer to home such as the ecb monetary policy meeting tomorrow. jobs report on friday. the appetite for risk is causing investors to move out of the euro which is taken on a new mental of a safe haven currency. sterling is an interesting one. it is rising against the euro for the first day in three. it is falling against the dollar for the seventh consecutive day. the longest losing run since june. construction activity in the u.k. which rose but not as much as anticipated. facts about ecb meeting on thursday. investors want some reinsurance from ecb president mario draghi he is willing to expand the ecb's bond purchases necessary to fight deflation. look at the german bund. little changed. up 2.8%. 8%.up to . the five-year forward inflation operate has actually fallen to 1.67%. you know more than i know because he used to live here at the ecb target for inflation is just below 2%. i, orto you mr. drag should i say mr. miller. matt: if only i were in mario's position i think i can do a lot. we had gains after europe gains. we are coming off session

it will give the ecb more flexibility. >> this potentially keeps the ecb in an using mode for a longerime. you see the reflection in interest-rate target and currency markets, even energy and whatnot. brendan: you might as well claim is to me right now. what is the significance of the move now within each asset, they used to be able to buy a quarter of each asset and now they can buy one third of it. what does that mean? >> this post a limitation in terms of the entire size of what they could actually purchase. question, they would eventually run out of assets. now by ending the month -- the amount they could buy, it gives them more scope for a bigger program. this lays the groundwork to say, you thought we were doing qe, we are doing qe 2.0. we are also seeing asset creek. brendan: the other news that came out earlier this morning, they could buy irish mortgage debts. we will see an expansion of the kinds of assets they are able to buy. >> right. issue was they would eventually run out of targets. it is not necessarily that they see some problem in the movement, but rather that they h

the ecb shouldn't recapitalize the banks at this stage. you'll damage just the international investors actually invested in the banking sector here. it will hurt taxpayers too. do you agree or disagree? >> i think that we should not recapitalize the banks excessively. he meant that we should obvio obviously bear witness to the fact that they need to install it and make it easier to get out of the controls but there's no reason why we should force feed the banks with excess capital which is more likely not needed and may be waisted at the expene of the european taxpayer. >> so don't dilute existing shareholders too much. >> excessively. it will be bad for people that supported the case of greece over very difficult times but also it will be bad for the banks going forward. excess of capital is not a good thing but we do need to have just in time capital for the regulator to address anything so it comes back. >> if we get to the point where this hasn't been agreed by december, in january of 2016 the new bailing rooms kick in and we're talkin

this is why i think the market is focusing on december for the ecb meeting. ibility that we might see a step up in qa. -- qe. moves, thatsee that would make for a busy december. diametrically two opposed moves. >> the fed meeting comes after the ecb meeting. tohink it will be easier know what the fed will do and then the ecb can make their decision. the ecb gets to move first. there is a significant risk that we will get these posts policy moves. just to make the point that during all of the gyrations of the story in august in this part of the chart, we saw strengthening of the euro. it is the move towards looking at the euro as a safe haven, i have seen fascinating analysis trendsmberg around the -- the cure -- correlation between the euro and the yen. it is flattering because of what it says about trade data that is strong, it is also bringing challenges though with the japanization of the euro. >> it has been used as a funding currency. that is because of low interest rate. popular, we had a lot of risk appetite. the market was using the carry trade and mov

the ecb meeting is on thursday. everything is up roughly 1%. d want to note, jim, you were asking earlier what would put in a bottom in the market short term. there's two answers for that. first is to friday, august jobs report. if we get some weird outlier number. i was asking people, what's a weird outlier number, 160,000, way below consensus of 220, that puts a stake in the idea of them raising rates in december. at least we get a number. if we get 280,000, it would increase the chances. we can get a short-term estimate but also a lot of chinese growth metric numbers next week. we'll get trade, cpi, ppi, retail sales on the 12th, and any kind of stability there might also help stabilize the market or potentially if they go in the other direction, unstabilize it. right now we're off the highs of the day, dow up 180 points. >> let's get to the bond pits today and check in with rick who's had a busy morning of data. >> good morning. we're only going to get busier. volatility keeps us busy. if you want to know what's going on in treasuries, of co

all those things are likely to set the ecb on a policy of further easing. we expect them to extend their qe program the minimum time commitment. they make it is sense that they will go to negative rights. francine: what do you expect euro-dollar by the end of the year? marvin: low parity. 98, actually. francine: interesting. thank you so much. head of european fx strategies at barclays. here's a look at what i else's on our radar. the biggest rally in 25 years -- oil rallies, and data will show an increase in valves. 27% in therged previous three days, after opec said it is ready to talk to other global producers to achieve a fair and reasonable price. francine: angela merkel and the spanish prime minister are due to hold a news conference on migration near berlin. it comes after merkel called the european union to take a united stand on the crisis. you are watching live pictures of hungarian authorities leading a protest in an effort to prevent migrants from leaving. that itss hoping newest smart watch will create a revival of fortune. it boasts a longer ba

currently where the review will be, that is where the credit will come here. ecb'sthe banking sector this year. that could open away to the euros of the recapitalization of the banking system and possibly qe, quantitative easing from the ecb. a well regarded economist who had difficulty negotiating. what is the verdict so far? if he is continuing on his ability to negotiate with the rest of europe? >> there are reports coming through in the last few hours that they will be reacquainted tomorrow. ..5 hours will be made my morning, the cabinet will be confirmed. much more moderate in temperament and appears to have a much better relationship with credits. he famously ruffled feathers. , thoughe of a diplomat he said to us he will continue to push for some kind of a relief in the four or five areas that he said creditors agreed to put on the table, and still up for negotiation. 50 million euros is part of the creditor's plan. it seems ambitious too many analysts. they have more faith in him than they do on he who caused a lot of attention. brendon: thank you. for more

but i was in the risk in this environment, the ecb have to speed up bond buying. t more guidance on that in december when heather meeting. guy: when you look at france at the moment, you mentioned germany and it struggles with vw, we will have a french budget later. indications are that we see a 7.3% gdp story. it is going to be interesting, and as much as it will take the pressure off. david: france is at least generating growth. are we underestimating what is happening? a reallyries interest, italian gdp is 9% below. and the four indicators have actually turned up quite positive. the indicator i missed earlier, the bounce of really being strong, also spain is doing it. and spanish gdp has been around 4.5% for quarter for a long time now. on this measure, italy is now outperforming germany and france. it has had the most consistent policies, if you look at what happened to lending rates since qe kicked off. at the end of the day, countries like italy which are fairly large could certainly outperform expectations. and france is tendency to do recently well. guy: is

futures adding to the gains and ecb rocking the market, a press conference in minutes.the one on the left. the speedy guy on the right is part of an intelligent system that creates the optimal trip profile for all trains on the line. and the one on the left? uh, looks like it'll be counting cows for awhile. so maybe the same things aren't quite the same. ge software. get connected. get insights. get optimized. >> these markets are rocking and rolling, up 109 points on the dow still average. 30 minutes away from the opening bell. final thoughts here? >> it can be interesting. the jobs numbers tomorrow. if the jobs numbers are too hot puts the fed back on the table for an interest rate hike, i continue is say is not a good idea. maria: sell into the drought. dagen: when world growth is the issue weighing down the markets. if the u.s. economy looks like it's on solid footing. that's good even down the road. maria: dagen mcdowell and scott, thank you for joining us. tomorrow on mornings with maria, 8:30 eastern, we'll be joined by monster worldwide and see where the jobs ar