perhaps some head scratching over whether these measures will actually help the eurozone economy. e will return to the markets in a moment or so. first, let's turn difference. the french president -- let's turn to france. the french president says the government will press ahead with reform to labor laws. tens of thousands came out to protest the government proposal to do so. the labor minister has signaled she is ready for a key concession to get unions onside. delano d'souza has more. delano: a day after tens of thousands came out on the streets to protest a reformed to the labor code, the government in france says it is willing to compromise by increasing payroll taxes on short-term contracts, an issue unions have repeatedly been calling for you promote long-term jobs -- calling for to promote long-term jobs. >> the proposition exists and goes hand-in-hand with my bill. delano: short-term contracts are increasingly popular in france. nine out of 10 new hires in the country take up jobs which, half of them are under 10 weeks. at this company, the owner relies heavily on short-ter

i have a chart here which shows the eurozone picture with regard to inflation. have euro area inflation, and in blue we have the euro area core inflation. if you are generous, you could say it is trending up ever so slightly, still at only 1%. statistically anomaly, it is flat. president mario draghi try to do by injecting liquidity into the economy by various different routes, we have him buying corporate credit as well as the usual government bonds, despite all of that, it is not moving. right> what does it tell you, we have no inflation in the eurozone. we are not going to have any in the eurozone anytime soon. because we have a massive output. we have too many unemployed people. that is the bottom line. the u.s. is a complete different story, where they do not have so many unemployed people. recoveryot have a that has been faster since 2009. we have more to catch up. anna: the classic relationship between china labor markets and inflation at play here, not the extent of deflationary forces coming through from china. edmund: exactly. a come back to economics

and put money out into the eurozone economy. on top of that, they're going to increase the amount they're purchasing by $20 billion a month, that's close to a quarter of a trillion euros extra. and they're going to bow corporate bonds. >> and for investors, it's clearly supportive fof investors, people are currently holding investment grade bonds into buying high yield. it will be supported for that. >> and that point there is good for the banks, as well, which we've seen higher this morning. do you think also an insleft er that's negative. >> i think you're going to have negative interest rates for a long time. everyone was complaining that negative interest rates were bad for banks. draghi acknowledged that and said they're not going to take interest rates significantly lower, but they're going to do other things which more support the banking system, more support for assets. so i think it's a positive. >> david, do you think you misspoke of saying, you know, that you're not going to be. >> i think it's very difficult to tell.

could a recession mean the end of the eurozone? third recession and a decade could put the financial and economic future of the eurozone at risk. a renewed increase in unemployment would further fuel the support, particular in southern europe, for radical populist parties. we would have three recessions effectively pushing the employment rate backup. at that point, a lector its on the political and economic framework of they are inhabiting and effectively seeking a different political and economic future. i think politics is one fault line that another recession would build up. the other is the financial sector. scarlet: i wanted to ask about the broader backdrop. area cyclicaluro- indicators, and it looks as though it has rolled over. with emerging markets having bottomed, what does that mean for europe? >> i think it means cyclical momentum will continue to weekend. europe had outperformed over the last year or so. i think this slowdown looks to be broad-based across a range of economic indicators. it is likely to continue for at

a recession in europe could destroy the eurozone. es for the european central bank when it meets tomorrow with its policy decision. neville talked about what factored into his recession call. >> politics is one fault line that another recession would build up. the other is the financial sector. scarlet: we will get there in a moment. i want to ask about the broader backdrop here. you look at a euro area cyclical indicator. this is a case of europe's perhaps catching down with weaknesses outside of the eurozone. what does that mean for europe? does the sun keep going down? >> cyclical momentum will continue to weekend. europe had outperformed over the last year or so, if you look at the pmi's and other indicators relative to those. prettyowdown looks to be -- as a consequence, it is likely to continue for at least a few more months. it does for the euro zone recovery at a bit of a risk in the sense of having seen a long economic which momentum was strengthening, it is now starting to deteriorate. >> who is to blame for the week growth

the broader eurozone crisis. i spoke to the finance minister about how they're going to finance themselves going forward. they're fully financed for the next four years but still have bonds which are below investment grade or at junk grade. they're not going to get support from any ecb bond buying to tie in with the broader issue of the day as well. so questions about when their going to go back to the market. i spoke to the finance minister about funding going forward. let's listen in. >> what the markets are seeing and have seen, and i'm very confident they'll continue registering, is a very positive trajectory. the debt is coming down. the npls are being restructured fast and will start showing. so it's all down to a very positive trajectory, which is becoming very clear, and it's becoming very clear to the markets also. i can confirm that we shall be out and about in the markets, even though i cannot say exactly when and if it's going to be a ten year or a seven. >> reporter: that was the finance minister of c

if i'm not mistaken, it is unprecedented for the eurozone. he further expansion of the negative rates. can you see that going into other categories? , you mentioned deflation. i wonder if you could just clarify. we have really not discussed this. we believe the measures we have taken today are adequate to address the change on the line. it is the last monetary policy measure. second question is, are we and deflation? the prediction shows the it will be negative for several months this year. but the years and come it will go up again. a sickly, because of our monetary policy measures which will create expectations so that inflation will return to the rate of inflation. horizon, andhe other words, the time it has taken to get back to the objective is now longer than it was. havedoes not mean that we deflation. this isr words, substantially different than what it was in the 90's. what to say? before you close the press conference, there is one thing i believe it is quite important that i should mention. to the banking sector, the eurozone banking

we're looking basically at february being the worst month for eurozone businesses in over a year. that's the message coming from these pmis. the final composite pmi reading, 53. the flash reading was 52.7. the final of january, 53.6. it stands at a 13-month low. a little better than the flash rating. still, we're somewhere around these lower levels. the february final services pmi at a 15-month low. expectations, 63.1, which is a little higher than the flash estimate and a bit lower than the final. first quarter the gdp growth could be a little slower. the firms cut prices at their steepest rate for a year. so the weakness continuing. >> and also we were just talking about the automakers, what they have to say about the european climate, but also keeping this focus on what the voels kag gone diesel scandal means for the wider industry. as we speak, we're getting audi earnings. it does appear the scandal continues to take a bit of a toll. we're seeing earnings fall on the year. operating profit fall about 6% last year. that was somewhat to do with the cost tied to the diesel emissio

a more radical move would be for the ecb to launch a helicopter rescue of the eurozone. what is a helicopter rescue? has been taking a closer look at that and what else the ecb might -- may have up its sleeve. it's been a year since the ecb began its bond buying program to jumpstart the sluggish economy, yet the results have been far from stellar. ecb president mario draghi has all but promised further measures. bond purchases have been increased in the current 60 billion euros per month almost 80 billion euros -- 60 million euros per month -- 60 billion euros per month to almost 80 billion euros. would be to push banks to lend to consumers by penalizing them for depositing cash with the ecb. mario draghi could also come out with more unconventional proposals, like helicopter money. it's a scenario where the ecb would directly transfer funds into people's accounts, in the hope this spurs economic activity and brings up inflation. some economists don't think the current situation in europe warrants such a move. >> a situation in which governments cut taxes or increase expe

the bloomberg index, this is the economic sentiment in the eurozone. has been going down to we are at 103, the lowest level we have the eurozone since february of last chair. a 13 month low for this. .oney going into equities similarly, significant movers in the benchmark metro. betty, you were talking about earlier. oft jump since november 2013. this an m&a play? does it where the appetite of investors or potential buyers of its electronic unit? it is really partitioning its food retail and electronics. anglo-american america. m&a speculates about this as well currently up 13%. the chief executive setting itself up to be sold. that: we will talk about later in the next hour. let's check in on the bloomberg first word in. vonnie quinn has more from the news desk. vonnie: at a town hall hosted by cnn, donald says he does not feel beholden to the loyalty pledge because he has been treated very badly. federal court judge merrick garland is leading with two more senators today -- meeting with two more senators today. illinois senator mark kirk becomes the

in the eurozone, you saw a smaller rise in savings rates. actually, especially in a world of negative rates, i think it's the german consumer that's been interesting. it's not, oh, let's borrow more, you can get a ten-year mortgage at 80 basis points. it's, oh, we're getting negative rates or no rate, we better save more and for the future. but the lower oil price has been a net positive to the western consumer. >> janet, thank you very much for your time this morning. janet henry, global chief economist at hsbc. get involved. we'd love to hear your views on all of this. you can find us on twitter @louisa bojesen. we're showing you the e-mail address right there on screen. streetsignseurope@cnbc.com. we're also on facebook. you can find the show twitter handle as well. it's all on there. a bit confusing. you'll figure it out. coming up on the show, hillary clinton and donald trump solidify their primary leads on tuesday. mr. trump reached out to his global supporters. >> i'm going to be very good for the world. i'm going to get along with the

think back to the eurozone prices. i wish yields on the 10-year or something like 12 or 14 -- i wish yields on the 10-year were something like 12 or 14%. alix: fixed by higher into the inventory numbers. to a 3.5% gain. part of it was the dollar. it rebounded from the five-month low. also, there was doubt that any kind of production freeze would be nullified. kuwait and saudi arabia are starting a production again in the neutral zone. what do you believe, what they say are what they do? tracy: exactly what the market doesn't want to many hint that the supply what is going -- that the supply glut is going to continue. alix: you can follow all of the tricks using the function at the bottom of your screen. i'm looking at crude positioning -- tracy: of course you are. alix: and how that might influence prices in the short term. here is what we have. we have the white line, hour-long sp== our long specks coming into the market. you can think of these as etf investors. the green line art merchant-long positions and they are v

. >> draghi was talking about this, the need to cross out a course for the eurozone and where it needsmember talking to a regular free agency, the big german bank tales, germany would bail it out and the current structure in terms of the banking union does not address any of those problems. we are very national, how far away are we from getting the structures in place? >> quite slow, the european experiment is only a year old. ofthe early stages experience with european regulation on the banking system. it is working. hopefully giving people greater confident of transparency and consistency of the averages. you do not get the national being played because it is driven in a consistent way across the entirety of the eurozone. we have to recognize the complies and that's compliant costs are rising and equity returns are demanded by our shareholders. banking models are becoming more expensive to run which is why you are seeing the banking sector not valued. the bank of cyprus stock is the same as the average german banking sector and i suggest there is an issue of different scope in each s

m looking at commentary there's saying that the measures by the ecb will not be enough to help the eurozone. you look at stocks. in terms of the push and pull of the session, we have a potential deal helping lead the s&p 500. food sales rising for that gaining on expedia the piper jaffray outlook. if you look of the bloomberg and the imap and the sectors on the move, you have energy and tech as the two worst performing groups. telecom, materials, and health care faring better on a relative basis. and energy -- attempting to acquire williams -- a lot of questions about getting that done. they are raising cash to pay down debt once the deal gets done, but relations between the two companies are frosty in that deal is underscoring that and we see declines and other materials-related shares. related to the ecb, we have been watching the euro today, which of course fell right after the announcement of the stimulus , as mariod recovered draghi said. this is likely to be the last interest rate increase. and interest-rate action. we see the dollar fall against the euro. people are looking for safet

a measure of inflation in the eurozone. this is why they are thinking of doing it. out expectation -- inflation expectation. the fact we have seen such a move downward, we're still at 1.5%. it is below 2% and that is where they wanted to be, isn't it? setew: can central banks inflation expectation? it willsignal that flick around the other way and send a cautionary message, not an optimistic message. when you get these just get to these extremes, the reaction is to save. i was traveling in the states last week, and there is no feeling of imminent recession did the talk is all about ticks. one of the aspects about politics was the feeling of exclusion. the lack of benefiting from the economic expansion over the last six years. anna: what is it that drives the -- a more robust economy joining the savings rate higher. in the case of ecb, we could see people sitting more if rates go more negative because of the message of caution. what is it? in both economies, it is that degree of uncertainty here it policy change in the u.s. certainly on the quality of jobs being creat

how their the terror attacks affect the eurozone as a whole? to bring had of your practice at the eurasian group focusing on the european political economy and fully worked at the european commission and u.k. treasury. he joins us on the phone from london. a failure ofk europe containing terrorists. >> it is a failure. it is a failure in belgium and more broadly for the rest of europe and i don't think that tell your is lost on public opinion. there is a growing sense and perception among european public opinion that its leaders are not dealing with the terrorists, and that is resulting in a greater push towards an increase in the popularity of populist parties to hisrmany to france far east as poland and hungary. >> one thing i want to get from distinctiveum is because it is a tiny country, but it has provided the highest .er capita number of fighters its intelligence and law-enforcement agencies don't seem to work with one another. is belgian the exception or the norm in europe? a set ofare definitely contextual and specific facts that make be

the data breaking out of the eurozone. we did the composite market eurozone pmi data. the february number a little better than surveyed. the survey number 53.0. that is a service line, composite line. better than anticipated. good news for mario draghi. we're also getting audi coming through. the 2015 profit fallen by 6.1%. it sees moderate unit sales growth. read through and see what i can see in terms of details. expenses in terms of the technicals for audi, a little bit ahead of expectations. and as you can see there is the audi webcast. and we'll continue to monitor what is said. this is vw's luxury division. what will the read across before mercedes and bmw? those guys report in a few weeks' time. let's check in the european equities. the rally starting to fade a little bit. un surprising after we seen such a decent move to the upside. a decent move in equities over the last couple weeks. the euro stoxx 50 under down by .5%. let's get you caught up on all the news you need to know. more evidence of a china slow down this morning. the priced in composite output inde

alix: the eurozone at 5:00 a.m. we saw a move lower in the eurozone. the path for lower oil?he ecb meeting coming next week. a silent quiet time coming. done looking for clues. got to wait for the big number. that is all. thank you for watching. quite have a great evening. -- >> have a great evening. >> the candidates are making their closing arguments. mr. trump: i have seen him sweat like i have never seen anything like it. >> the campaign testing the candidate's resolve. mr. sanders: last week, i bought my second pair of underwear. >> i think we are getting off track. >> this is crazy. this is just nuts. with all due respect

i think that will create two european unions, the eurozone and the non-eurozone countries. it is very interesting question about the role of government. the problem we have at the moment is there is a conflation between the government, acting international interest, and the leaders of the government acting in the interest of the campaign. in british politics, before we have a general election, the civil service will sit down with the opposition parties to ask them what their legislative program would be and their contingency planning for a change of government. yet, our current government refuses to allow the civil service to do contingency planning for a leave vote. that seems irresponsible. it is being done because the government is acting with the remain campaign, accepting that there may -- refusing to accept there may be a leave vote. the government is acting as the remain campaign. it needs to be resolved. the government will meet over the nature of the question for the referendum and the government's ability to exempt itself from existing legislation the govern refere

are you concerned that the eurozone will implode in 2016? are looking at a eurozone implosion. perspective,r-term obviously big challenges. i would say mario draghi, i think, is doing the right thing. his actions have been impressive . he is up against a lot of resistance, but he is being about as aggressive as one could imagine considering the restraints. there is at least slow growth, recession slow growth, unemployment is way too high, but it is coming down, and mario draghi is expected to do more easing this month. it is the right thing to do, but he is overshooting his targets. he does not have as many allies as he should. tom: some of our candidates want to build walls with canada, with mexico. what did you learn in studying immigration for your important book? robert: in addition to the problems with innovation, we have the slowing of hours per person as the baby boom retires. there is no better solution to our demographic problems than more immigration. immigrants are young. the way we get more people into , to paying age groups the t

they won't be happy with the fact that the eurozone is trading down. cial for europe. those are two important metrics for the ecb. guy: if you look at the work function on bloomberg, the german data looks a little bit better on the services. stronger ase is well with 54. 54 is not bad for germany. i want to take you back to the work function. what the market has price in has been great hikes from the fed. rom the hikes for fred. we have praised that back in. we have a 6% chance and that is still not nailed on. the fed is probably comfortable with that. that means we have nothing for the next eight or nine months. that is consistent with what we have seen since december. we have two priced in at that stage and now we have maybe one. it is still consistent with the fact that the fed will not be as aggressive as they were thought to be. guy: the curve was flattened like a pancake. it continues to do so. what are traders saying about that in relation to the yen? >> the anticipation is that the boj will cut rates again. the consensus is they will continue to

there was talk about perhaps the netherlands exiting the eurozone. vitt: no, the netherlands is going nowhere. but there is talk of grexit. there is talk of one of the political parties saying you get us, we get this referendum. it starts breaking a bit at the seams. ,t's a u.k. is very successful if it does leave, others may want to follow. it becomes a very fragile situation and there's nothing more the market was talking about and that is another european breakup it never happens and this will be no different. alix: the backdrop of this is if the fed ends up raising rates, what kind of upward pressure does that put on the dollar? good point.t's a to what extent are you factoring in what the fed does or doesn't do next? changes so it rapidly weather data comes in better or wars than expected. david: i'm looking at the dollar versus the euro. if i'm looking at sterling, i'm just worried about politics. , atfor the other currencies the moment what we are seeing is a bit of a comeback for commodity prices. marketsoment, the chewing a bit of risk at the

and the eurozone. this is the spread between the yields on sovereign debt in the u.s. germany, hitting the highest level since the crisis. actually about a 10-year high right now. it's another way of looking at the divergent pattern between the two economies. the two-year spread often seen as a proxy. the u.s. getting lifts, divergence once again. vonnie: if the ecb does go into negative territory, what on earth happens to this? joe: markets are betting that it is going to widen. a stoneware policy is going, they do not see them converging anytime soon. give it to going to joe. market, i'm so sorry. #btv 475. vonnie: only because it is so topical. all eyes are on thursday. you will have more chances later this week. mark: i wish to lodge a formal complaint. i consent to joe's victory. well done, joe. theill take you through final numbers before the close. looks like stocks are going to fall for only the second day, investors focusing on the china national people's congress. i will have all of the closing figures for you and just a minute. stay with us. ♪ ♪ london and n

among the levers or tools the ecb is keen to use to boost inflation and growth in the eurozone. anna: they actually increase their forecast where the euro is going to be. particular, in the last quarterly update, the less two quarterly updates in september and december, the projections were expecting it to sustain its losses of 10%. , we areatest edition seeing the staff is expecting the euro to officiate. the euroe even -- appreciate. appreciate even further in 2018. you wouldn't do that if you wanted to use depreciation as an instrument. anna: the ecb only one side of the trade. plan to do,t they what do think of this suggestion they don't care too much about where the euro heads in the short-term question mark richard: it depends where the level is. they are probably comfortable with it at 110. 108-112at we have had range yesterday, they are probably ok with where it is. we have a different sort of story. behink the push back will more vigorous against currency strengths should we get to levels where they are less comfortable. anna: thank you very much. richard, thank you very

francine: the eurozone braces for another month of disinflation as the data defies draghi. stocks affect it asian head for the best month sent 2009. the us federal reserve's sees optimism. stoxx 600 trails u.s. equities. and ugly quarter slams shut in europe. -- and ugly quarter slams shut in europe. ♪ francine: welcome to the pulse. live from bloomberg's european headquarters. i am francine lacqua. it is the end of the quarter. thursday, i am ahead of myself. it is job state. this is what the markets are looking like. we had a bit of a reversal. european stocks down to 1.1%. asian stocks still higher but on the day a little bit lower. you can see crude, $38.8. that is putting a lot of pressure coming from the mining sector at euro-dollar, the week in terms of dollar weakness. i want to show you copper because it is down a touch. we are getting some breaking news. chinese data, let's get straight to bloomberg first word news with nejra cehic. nejra: britain might vote to leave the union to help keep consumer confidence at the lower level -- lowest level in more than a year.

fiscal policies this year across the eurozone are, at best, neutral, if not accommodative. at's good for the consumers and the taxpayers obviously. probably less good for public finance in those countries. >> some of those benefits we're seeing on the consumer side could be limited. >> that's true. exactly. >> thank you so much for joining us. a real pleasure. meanwhile, the embattled brazilian president has been dealt another blow as the country's largest party has quit the ruling coalition. the move increases chances of impeachment over the coming weeks, which would lead the pmdb's vice president in lean for the presidency. the party's first vice president announced the party's decision to rule out rousseff's government. >> translator: starting today in this historic meeting for the pmdb, the pmdb removes itself. >> investigators probing last week's terrorist attacks in brussels say a second assailant likely took part in the attack at the metro station. dow jones has cited a person briefed on the investigation as saying, quote, law enforcement believes it is very likely th

cyprus is not the only eurozone country feeling the heat. grexit is back.needs its new cash infusion, but not until investors -- creditors look at reforms from the last bailout. is right around the corner. joining us is the university of texas professor and economist james galbraith. professor, is this summer 2015 all over again? james: not yet. what is going on in greece, a government that is over the barrel, forced to raise taxes to cut incomes and pensions very sharply. what that means, is that the greek people are running out of money. they are being forced to default on their debts. their european a so-called partners are pushing the government to accelerate closures and bankruptcies. isentially what is happening that the creditors are setting up the conditions where they can get greek assets, including some very valuable and desirable real estate. -- for firesale prices. it is not an economic reform or recovery policy, but a land grab. at budgethen you look data from the central government, it looks like there has been fiscal improvement from 2014, th

europe and the eurozone, more negative rates. anged me in terms of the boj and what the ecb were hoping for more action from the fed did when it comes to the ecb, there is a new guy in town in the bond market. anheuser-busch. they are going to watch the market with $13.25 billion of debt. the ecb is going to get involved . it is shifting and turning. how does that play into how you think when you talk rates? laurence: you are right. part of what is been going on with the negative rates and qe is that it is encouraged a lot of in sewers to come into the european bond market. manus: 46 billion in four days. lawrence: the new buyer and -- laurence: the new buyer in town. the details are unclear. what we already have is the traditional qe works is it has a portfolio balance china where the ecb is taking not only the core government bond markets and taking bonds out of that, but the entire government bond market. it is not only did ecb that is buying corporate bonds, it is also the european investors that are finding yields wherever th

i think the eurozone is moving in the right direction. that is pretty significant. saying the ecb has it easy -- they can't do it alone. , youeed a regime change need governments to spend more money. francine: people keep saying that all the time, but no one really does anything about it. what do you expect them to do? >> i really don't know. let's be clear -- mario draghi wants the federal reserve to raise interest rates and obviously the u.s. continues to normalize. think that maybe the new model. francine: how many questions on brexit? >> that's an interesting question -- for him it is a major risk. it is his biggest risk inside europe. are the markets pricing -- the brexit uncertainty makes his job more difficult. >> it does, but they have a press conference in decision in june. he has almost reached the point at which he can't cut the rate further. there is a limit to what he can do. needs dry powder. thank you so much. pulse."h "the coming up the deco chief calls on draghi to do more. then, bad news for science and the bank of england. rate hikes -- we break d

pressure self toward the manufacturing data coming out of the eurozone. 00throws -- opens down .2%. digging into those numbers. lsc is trading higher. we could see a rival bid for the company. taxes down. down. keep an eye across the board of negativity when it comes to equity. risk aversion and europe. -- aversion in europe. we are seeing once again stock markets and oil, that correlation breaking down. oil up .9%. the concerns about the china slowdown playing into metals. copper.terms of money going into gold. 1240. money going into u.s. debt, italian that. -- italian debt. $20 billion worth of debt that came in negative. you are paying japan the privilege from holding your money. let's have a look at the stock market. let's see where that market is moving. they are shaking up -- africa unit. that is going to be helping drive the capital of the barclays higher. so says the ceo over the next two to three years. they are dividing up the bank in line with the need to separate retail from investment banking. ring fencing moves that the united kingdom wanted.

the banks. you have to feel incredibly sorry for eurozone savers here. e message was rates are going to remain low for a long time. look at the front cover of one of the german newspapers here showing mario draghi light ago cigar and setting fire to a 100 euro note the. i think they're clearly saying how they feel about further stimulus measures here. >> we'll try to get that for you goose because it is quite an imagine. >> what an extraordinary move yesterday and julia just saying that, sara, investors needed time to digest what this meant. they've dot guested it this morning in positive fashion and we've seen markets move up significantly. i think when you look at the roles of the dice that central bankers are making around the world, this is as good of a roll of the dice they can do. he's not just focused on the currency. he's tried some measures. we know qe doesn't work simply in european system as it does in the u.s. >> they went all in on that, too, 80 billion euros. >> absolutely increasing that. but i think some of these targeted measures, buying

are we worried about china, inflation, worried that the eurozone -- i'm just not seeing anything terribly wrong but i'm not seeing good news. richard: we are worried about all sorts of things. when you are not growing so fast, the economies don't have momentum. you can't plow through these worries. you feel more to them. ikey, there arer problems in japan. you just feel vulnerable. i think central banks should be doing more. i think the european central bank has backed itself into a corner, where it is being demanded to make policy actions. again this week, focusing on policy actions. why must it do something? what the european central bank should be telling us is the eurozone economy is gradually gaining momentum. he is an improving trend. we expect that to continue this year. and taking people's attention to what really matters. francine: what does matter? the central banks are trying to fight inflation or the specter of deflation. they are probably working a little bit with the currency to give the markets no reason to sell off. richard: i don't think central banks have got to grips wi

not so much in the u.k., more in the eurozone self. tsche bank, but the uproar about february. the last 10 days or so, this is not deutsche bank per se, but the whole industry. no bides the point of become so great that institutions like the ecb or the fed have to provide stability? we don't know, do we? robert: we don't. in the case of the ecb they may .e contributing to instability negative interest rates is a strange concept. pay people to hold your money doesn't make sense. what we are seeing is a reevaluation of whether negative interest rates are accomplishing what they want it to accomplish. well.une 30, as we will continue with mr. sinche on radio. bloomberg is next. they will continue the discussion. francine, thank you. it is jobs they tomorrow. gary shilling will join us on disinflation, and bill gross on janus capital. ♪ >> bank stocks plunge in europe. this is ahead for the biggest quarterly drop since 2011. eurozone inflation remains negative for the second month. the european central bank repairs to ramp up and anoth

mark: the next step in the eurozone is a continuation of the negative interest rate policy it seems when the ecb meets on thursday. mario draghi and his fellow policy makers will ignore mr. greenspan's concern. there is not going to be plain sailing for mr. druggie. raghi. mike: we have seen a lot of volatility in the european bank stocks after negative interest rates were adopted and push down even farther. we'll have that kind of effect if they go even further and how will it impact overall financial transmission function of banks in the eurozone? negative rates work if you are a small country like switzerland at driving currency away. other than that, it becomes a beggar thy neighbor currency policy. while it works for some countries, it will not have a lot of additional help for others like greece perhaps. it is going to be controversial going forward. vonnie: that was just a fraction of the interview. michael mckee, thank you so much. with formerw there fed chairman alan greenspan, look for it on our podcast of section. mark: we are in an hour and 18 minutes away from the close toda

joe: ok, so that is interesting, but the eurozone needs help in some way, inflation is diving, unemploymentsky high, there is risk that they could have another recession since the crisis, should this be more on the fiscal policy makers? what should be done? guest: i think that, a good way of thinking about it, if you look at the u.s. recovery, once you have a recession or financial crisis, that puts in motion recovery. if you look at a chart of the u.s. market recovery from 2009, you'll see that the labor market recovered in total hours, rather than in payroll. it is a tight clear channel and all of the various policy initiatives that monetary policy carried out in the u.s., had no --act it i would argue that impact. i would argue that europe needs to wait. they had a downward trajectory. even all the flexibility that the u.s. has and all the monetary policy action that the thattook, i am skeptical the way to get there in europe, i would say that we've had -- i think that the diagnosis that inflation is low, that is wrong. if you think about inflation and break it up into services and goods

we have seen banks becoming a lot more localized within the eurozone as a whole, but europe is now lessctively engaged internationally. european investors are keeping money closer to home and to the domestic bond market. this is leading to a substantial reduction in global capital flow . one of the consequences is central banks have less incentive to intervene in the foreign exchange markets. in the past, they were intervening and buying treasuries as a result to try to offset capital inflows from europe. those are not taking place so china does not need to intervene so they do not need to buy treasuries. .om: bring up the dollar chart as the end result, the idea of a stronger dollar even if it is not so much below parity, to see a leg up in the dollar? paul: i am not sure that is the answer because the dollar is a disproportionate beneficiary of central bank interventions and flows. ubs has been running the central bank conference for over 20 years and it is clear that in the post crisis environment, just under two thirds of capital flows is going into u.s. assets, disproportionately h

the longer-term story for eurozone is still there. tter profit growth potential than you have in the u.s. ex line the question of when that is going -- u.s. the question of when that is going to be realized. talking and saying the market ecb action very substantial. the priority very much to look at a credit market. he is saying the ecb cannot create conditions for a sustainable recovery could coming back to this notion that we need to see fiscal authorities doing more. what is interesting is the policy formulation does show the ecb is not done yet. there are things still to do. it does underline the ecb's resolve to tackled the low inflation that is currently being experienced within the eurozone. we are nine minutes away from the european equity market open. we will look at the potential corporate moves which includes axa, the ceo and chairman will retire in september. where is he going next? ♪ guy: welcome back. six minutes until the market open it with stocks do we need to be paying attention to? caroline hyde. caroline: i want to

fed meeting comes after the european central bank cut interest rates last week to boost the eurozone fragile economy. sandra: let's look at today's headlines in the "wall street journal." pick up a copy. as car munoz returns to work following a heart transplant with a lengthy list of things he has got to do. madison avenue grapples with lack of diversity. recent missteps paint unfortunate portrait of the ad industry. $20,000 self-driving vehicle hits the road. honda civic lx has automated safety features allows the car to drive itself on a high for $20,000. nicole: pretty cool. walt disney's, "zootopia" ruled the box office. but a newcomer is getting a lot of attention. >> something's coming. nicole: we will tell you the top films of the weekend. in sports march madness is here. the top teams have been selected. but they were let out of the bag a little early. we'll let you know what happened, who sits at stop of each bracket. all coming up next. check out u.s. stock market futures after four weeks of gains. s&p futures down three. nasdaq down three. you're watching fbnam, the first l

the eurozone growth is looking ok. hts direction, but we need to see more growth from the eurozone. they will probably need some reform in order to get inflation expectations -- anna: are negative interest rates the right policy tool to fight week monetary prices? >> we think negative interest rates have been beaten up too much. we think they are an effective policy tool, effective at moving the exchange rate. that has been somewhat distorted since the bank of japan got negative rates. but ultimately, we think this is the right tool. anna: thank you very much. michael stays with us. up next, a food frenzy. china's inflation rises the most since 2014 as millions feast over the lunar new year, but is that rise sustainable? ♪ anna: welcome back. this is "countdown." you here in london, 8:16 if are watching in frankfurt. let's get the bloomberg business flash of caroline. caroline: thank you. an international security exchange for $1.1 billion, catapulting into the top of the u.s. options market. the transaction could help

capitaln't as much market activity in the eurozone. ng sector is more important to the euro. concerns about different banks and stability, and when you start putting negative interest rates into the equation, it creates more risk, so i do think the ecb does have a acre issue with the banking sector, but it they would negative interest rates, kind of hemming in what they can do next week. disappoint,b may but we have chinese stocks and oil that looks like they put in a double bottom and stabilize. how do you marry the two? underwhelm'she ecb and markets remain stable in the rebound a little bit, that would be another sign that markets are rebounding on bad news, so that could be a very interesting test , this improvement in risk appetite if you have unquote bad news -- "bad news" and markets continue to stabilize. so much fornk you your insight today. sales, nextave hurt week big into the company's numbers to see how they might recover. ♪ scarlet: i am scarlet fu. "what'd you miss?" the falling price of gas is putting more money in consu

the u.s. is probably going to grow at a little above 2%. eurozone above 1%. y get to 1% this year as well. the economic outlook when you detach yourself from some of this market volatility, you know, has never looked that bad. china, of course, a limplg pin. we think that's probably in for low sixes this year. >> paul, thank you for coming in. my chart of the week, dow transports. outperforming. can it continue? can they pull themselves out of correction? >> mine is glencore. look how the leverage names to the commodity cycle have bounced this week. that's it for "worldwide exchange." "squawk box" up in a couple minutes. you know, to show the importance of saving for the future. so you're sort of like a spokes person? more of a spokes metaphor. get organized at voya.com. >>> good morning. blue chips, believe it or not, back in the black. the dow turns positive for the year after a 150-point unexpected jump yesterday, while wti gets back to levels not seen since december, topping $40 for a while. i think it's pulling back a little today. >>> calling all cars. t

i would suggest it needs a real good kick to get the eurozone moving. was positive, but it probably needs to get back on the sort of 1% or 2% growth they really want. mathematic love that equation. a little bit early in the morning. hooperis is what peter learns. this is psychology. youou are mario draghi, do say negative rates -- do you need the confidence, to give confidence to consumers that you are there? that you are there and you will it?ort jim: mr. druggie is doing everything he can, but when -- draghi -- the last part about the labor market is why you have buoyant employment in germany and in britain, but you have quite bad unemployment italy, andance, spain. spain is taking steps in the right direction, but there is not much going on with respect to france and italy. do whatre france you you can and advocate something more constructive elsewhere. if you are janet yellen how do you respond? of thethink the strength euro and the yen against the dollar, the fact that upward pressure has gone off the dollar, takes some of the pressure away from the

then you have all these concerns -- brexit, the eurozone, china. this must be weighing on her thinking. >> a lot must he weighing on her thinking. that she should be fairly happy. if you look at the u.s. data, if you take core pce, if you look at u.s. unemployment, you could make the case that the fed has, by and large, achieved its mandate. inflation is edging closer to where it should be, close to 2%, unemployment is at a level that could cause full employment. the first thing is, judging from the fed's point of view, things are actually not bad. francine: the markets aren't believing that. >> i know the markets are believing that. they are always a little nervous as they tended to look at the not so bright side whenever they have a chance. after going forward, the market turbulence was a warning. in response, the fed will probably have a very go slow approach. the data are good enough that you could say you could think about a rate hike in april, that the fed will probably signal they'll look at april, but it could be june. have a real respect fo

daniel: draghi's throwing everything including the kitchen sink at the eurozone at the moment. will these policy changes work? >> well, in a way, it is hard to tell. as i said, a lot of these programs were already in place, and basically, what the ecb is doing now is reinforcing what it was doing. more of the same medicine. the question is how to the medicine worked before? there are signs that suggest so. we are entering and negative period of inflation. the ecb revised its forecast 20.1% towards year-end. -- to 0.1% towards year-end. but this is mostly due to oil prices. once you net out the effect of oil prices, core inflation has been picking up since the ecb started its qe program. there is some evidence that the medicine was working. basically, what draghi is doing now is stepping up what has been done before. daniel: ok, but you can leave an investor to money, but you can't make him borrow. all of this is meant to encourage borrowing, but how do you get people to borrow? >> so in a way the question is whether it -- firms and entrepreneurs that don't want to borrow or whe

we have a bit of an existential crisis if you like going to the eu more broadly and then the eurozonehin that. in the pound weakens because of concerns around brexit and the odd takes on some fairly trading characteristics in the midst of that conversation. how week do you think the euro get from here? >> there are three main drivers. policy, politics and the refugee crisis. they are all interrelated. probably the refugee crisis shows up and risk premium in the peripheral bonds. that tends to strengthen the euro. we just talked about china that is the weakness comes back the euro also traits as a defensive currency. the ecb policy which is generally going to be cutting rates and expanding qe. it is a different directional picture. in aggregate we see the euro as weakening but the path to it eating lower is quite volatile at times. as a baseline view we see it trading below 105 and toward parity by year-end but the path is neither straight or direct. >> the ecb set policy this week do they want to have a weaker euro? is that a conscious choice. with a single will not engage in any kind

having tos draghi inspire growth across the eurozone, but adding to his woes is something out of his l, which is the u.k. vote on a referendum and whether or not we will remain within the eu. wonder we have leaders from france and germany coming over to support the fact that we should remain within the eu. guy: thanks, caroline. up next, we will talk jobs day in the usa. obviously, the market is paying attention. ♪ guy: welcome back. you are watching "on the move." let's see how things are shaping up. london is outperforming, as you can see. london is outperforming because the minors are on an absolute tear. big numbers have been posted over the last couple days. let's catch up on but you need to know. here is caroline hyde. caroline: i have got to show you a particularly volatile stock. this company is on an absolute tear. many in the market are watching this. up, soe oil market goes does sedro. this has been gathering steam throughout the week. an $11 billion debt load. fredrickson be looking to participate in any sort of restructuring? this is a company that has been decimated. by

of u.s., the rest of the eurozone is way down. tive the economy of whether they stay on. the white line is unemployment in the eurozone apart from it. i think it is the green one. the point is there is a diversion snow matter what. peter: i think it is not for me to tell people quite how to vote . set up your mess for why people should think through themselves. my judgment is not to leave even though is a lot of work to be done. the u.k. negotiation has been seen as an opportunity to make further improvements in the way the eu works. there is a divergence. one of the problems, but we should stay, is the more you the morehe eurozone, they think high unemployment, andgrowth, less innovation, we are doing pretty well, thank you very much, on the fringe of europe. >> i am with peter and i am very against the grexit. the one that makes sense is to say we do not want to get shackled to the eurozone going nowhere. i think the bad reasons would resonate heavily with britain. with migration problems or things related in europe by itself, th

nearly 100 billion pounds -- 100 million pounds lost as people decide to leave the eurozone. would be aed brexit furious shock to the u.k. economy. campaigners have disputed the findings. valiant pharmaceuticals have ousted its chief executive and edit hedge fund manager william macklin. the stock fell 73% this year. they launched an investigation into the business and accounting practices. after rose as much as 15% news of an executive shakeup on monday. and sweetening a buyout offer for marriott, hearing a proposal from a chinese insurance group. it is worth $6 billion it would create the world's largest hotel group including starwood and brands like shaton and stin. run would renovate and three hotels in havana, becoming the first americans to broker an agreement with cuban authorities since 1959. in that comes on the back of barack obama's historic visit. host: and i'm sure there will be more economic matters to come. thank you for joining us. stay with us. after the break, we will talk to our correspondent in bamako. the european union training mission attacked in the las