how were you rating the uk economy? how good was your outfit? what was it assessing as the systemic risk in the uk banking system? >> of the uk's rating, was aaa in 2007. >> but were it good? as it turned out your rating was -- >> i'm sorry. i don't understand the question. >> what do you think -- are you aware there's been a financial crash in the united kingdom? what i sent you, what was your rating prior to that crash of the uk banking system? >> we don't have a single rating for the uk's banking system. we don't -- >> you don't? >> our methodology does not take a system and give it a rating. we only apply ratings to individual institutions which is why i found it difficult to answer the question about the rating for the system as a whole. >> right. so you don't subscribe to the system, for instance, that fitch have for -- for countries. mr. riley, you have a system, do you not, which rates the banking strength of a country? >> we do. there's two aspects of system rating. one is actually just simply taking the rating of the standard loans, the

>> i think it's a very acute example of the situation that the uk economy is in. we've got a shrinkage of the public sector, so border staff disappear by huge amounts over the next year as part of the program of slinging the public sector and getting the deficit and debt down. that's supposed to be replaced by a boost in the private sector job growth in order to replace that shrinkage. and here we see a class he can classic example. maybe more funding has to come through fees or in some other way for the airlines on ensure their sufficient staff to handle the sort of people coming into the number of people that will come into the country over the olympic period coming up. and i'm sure that it will be very damaging internationally if that issue isn't solved. >> i remember post-sort of 9/11, going to the states, i it actually thought unless i have to go to america, i'm actually not going to go because i don't want -- it does have an impact. >> jfk used to be just an impossible place to enter the u.s. from. go try to find some small mid western airport to land in. >>

sequence of the macro economic environment both in the uk and elsewhere in which is operating the uk's economy is sitting and as a consequence of the potential for further shocks to emulate from the euro area as a consequence of the debt crisis. >> if i pressed you and asked you about the key risks to the uk's aaa rating status, would you say it would more extend to exposure to problems of the eurozone or the trajectory of fiscal policy? >> the risks -- i think there's a first step and a second step. the risk -- our view is that in the absence of further macro economic shocks, the debt to debt would be restored and the debt, then, would become sustainable as a result of plans. the threats to the plans are in the macro economic arena and those threats are both within, as consequence of the uk's domestic macro environment and as a consequence of the situation in euro area. we haven't sought to try to weight those two broad underlying threats to the debt consolidation trajectory. >> mr. kramer, do you -- just going back to what the chairman asked you about the u.s. experience. do you accept that

and nearly half are not confident that manufacturing be a core sector of the uk economy in the next decade. given the government's point on the importance of mfrtsering, i wonder what your opinion would be. >> i think manufacturing is absolutely a central part of the british economy. we should stop talking down the good parts of the economy that we have that we can build on. we are one of the world's top ten manufacturers. if you just take the car industry, it is an important figure. for years people thought that britain had stopped making cars. today we are making an exporting more cars than we import. it is difficult to find a car manufacturer in brit tape that isn't in investing and expanding. i've been to almost all of the major plants over the last year. sunderland lull going all guns and great new orders of cars going to be made there. on a housing boom, on a financial services boom, an uncontrolled migration, on government spending it is hard and pain staking work to rebalance that model that couldn't work anymore. that we've now seen what a mirage stfs. we have to rebalance away fr

the decision is at 12 noon, despite the uk economy falling back into recession first quarter of the yearon still stubbornly high levels. and remind you ahead of that decision, gilt yields 1.2%, pretty much down on all-time lows for the ten year gilt at that yield. ruth, welcome. there's a theory that actually we're in a negative supply shock and low interest rates might be making the situation worse. i agree in the sense that in stubbornly high inflation and no wage growth has been a bigger drag perhaps on the uk economy, about you if you have things like food, energy, credit, clothing all playing a part in inflation, you can't do anything about those. you say you strip those out. and then we still have a problem. >> it's not a theory. we've had zero growth for the past three to four years and the price level is over 15% higher. so it's a fact. no growth, high inflation. >> how do you deal with it? >> textbook says tighten moneta monetary. the point we're making about quantitative easing is two fold. first it's done nothing to help growth. we've been consistent in that line of argument.

uk? how do you square that with this report? >> yeah. the economy is obviously soft.firmed a couple of weeks ago. it's all relative these days. the inflation numbers continue to edge gradually lower, and so the bank of england have been stuck between a rock and a hard place for a while now in that inflation hasn't fallen fast enough, so they've had to stop qe. further if itakens it is possible. >> what's your market forstering? >> for cable, we're seeing it a lot lower. euro/sterling we're think of changing the 23r569. if greece does exit we're thinking of taking the euro down to around 75. >> stick around. we'll talk with you. there's plenty more going on today. in particular, an zwrjen la mer has talked to cnbc. silvia joins us now. this is the key point, right? if greece cannot fulfill the terms of their bailout package, what would she do? >> she quite clearly didn't answer the question. she was asked by several people ser several times. she said i'm not going to say. i think what the eurozone governments need is a greek government or greek counterparty that says,

the active monetary policy that supports demand in the economy as it has done in the uk. y the need to be combined for reform and its -- there is a need for proper structure form so they have competitive economies. and then i think the extra element is using the credibility we've earned, the strength of the government's balance sheet to try to deliver finance into things like infrastructure and into credit. and that it's an option to open in europe as well and i think that's what president hollande is talk about. we have gotten in the uk. we need them in europe as well. >> with my right honorable friend and agree that when we look at the scale and timescale of the burma of that fell on west germany, and german reunification, we get a sense of the awesome challenge we could face any german chancellor in trying to achieve fiscal union in europe? >> yes, i think my honorable friend is entirely right. this is what i think when some people, and was employed in the question from the former chancellor, implied that german stubbornness is unreasonable. it's understandable. obvious

center for economics and business research shows big data can contribute 216 billion pounds to the uk economyoining us is the chief executive. jim, welcome. so data can save britain from recession or at least from further deepening, worsening of recession? >> there's certainly a lot of up side to being able to analyze large amounts of data that companies are obtaining. if you think about all the tweets going around the world, we analyze the tweets. facebook is a great advertising platform strategy. and the goal is -- they choose which ads to put on what pages. since they have a tremendous amount of demographic it information about the people that are on facebook, they can use that information to do very selective ad placements. and those placements, they can get premium dollars. so i think the -- >> even if half the people don't click on the ads? >> i guess it they hope to change that. i don't click on half the ads i see. >> that's the point, isn't it. where facebook is unbelievably valuable is that you can test responses to products or ideas. now, how much will come companies prepared to pay

turning to the imf, saying dangers to the uk economy are large and mainly from the escalation of thethat the uk recovery will gain pace, but there is risk of lasting damage from a persistently large output gap. saying they should ease policy further through a cut in interest rates or more quantitative easing. the government has scope to rejig austerity, do more wage cuts to fund infrastructure projects and that the government should ease its fiscal consolidation measures if recovery fails to take off. >> osbourne welcomes the imf support, but i'm not so sure he'll ever say he wants to reduce -- -- well, reduce the deficit cutting plan. there's one plan in the uk and that's it. >> this is the second set of headlines out this morning. you have to look at how the rhetoric is shifting. >> and all the pressure is on angela merkel. does she change her tune or not. that is tomorrow night, it is a dinner. plenty ahead of that. meanwhile greek banks set to receive much delayed recapitalization funding. by by friday, the country's top four banks will receive 18 billion euros as part of the ori

and the economy of the uk since the great recession struck. you can see there, both economies cratered in 2008. since then the uk instituted harsh austerity measures and here's what happened there. their economy recovered initially, but it has since taken a turn for the worse. the united states rejected austerity measures and opted for a government stimulus package and this was the result, growth. slow and at times uneven but growth nonetheless. the u.s. has so far managed to avoid the double dip recession the uk is experiencing now. it's been the same story throughout much of europe as stimulus measures have jumped started the u.s. economy, europe economies have seen their economies recover at first then drop off. here in the u.s. there's even evidence now that less austerity could have improved the economy even more. this graph was posted by justin lahart of "the wall street journal" today. it showed if they spent money to keep government workers rather than lay them off, the unemployment rate would be around 7.2% instead of 8.1%. in the fac

i think that will help with the margin, but the uk economy will be hit hard because of the huge tradek retail sales data shows the sharpest drop since january 2010, driven by a drop in auto fuel sales hit by potentially weather-related drop in clothing sales, as well. not adding to what's happening with sterling. i think we're going to continue to see -- >> we're below 1.57, sterling slipping deeper. 3 1/2 month low, the euro's against the yen too. european stocks today, well, none of that is helping us, that's pushed us down further, ftse down 1.6%, the cac down 1.7%, as well. let's take a look at bonds. if we take a look first at bunds, they were down 1.4%, italy just below 6%, still 5.78%, spain at 6.14%, we're not at twhat we were earlier this week. >>> germany auctioned a zero percent coupon today. patricia joins us from frankfurt with more on this. >> well, it seems to be fairly solid considering that you don't get anything in return apart from having your money back eventually. and this is exactly what the market is buying right now. of course, we'll see the final results later

and the economy of the uk since the great recession struck. they both cratered in 2008.ince then they instituted harsh austerity measures. it's recovered but has taken a turn for a worse. the united states rejected austerity measures and opted for a government stimulus package and this was the result, growth. slow and at times uneven but growth nonetheless. the u.s. has so far managed to avoid the double dip recession the uk is experiencing now. it's been the same story throughout much of europe has stimulus measures have jumped start the economy. here in the u.s. there's even evidence now that less austerity could have improved the economy even more. this graph was posted by justin lahart of the wall street journal. it showed if they kept workers the unemployment rate would be around 7.2% instead of 8.1%. in the face of all of this evidence we're in the situation in this country where one of two major political parties is committed to austerity. massive cut, massive cuts in government spending. rejection of any government administered stimulus for the economy. precisely

by comparison, uk costs are below 2%. the economy has been shrinking in a lengthy recession. by the end of 2012, output would have fallen nearly 27% over five years. why is the economy stuck in reverse? i asked the head of the leading greek business organization. >> people prefer to keep whatever euros they have in a safe or the wallet, and not spend it. and of course, business investment is about taking a targeted risk for the future. it is not possible to calculate any risk at this time, so investment is up a total standstill. >> tax rises and spending cuts are not helping growth. without it and higher tax revenues, greece will struggle to reduce its borrowing. it has become europe's problem because the financial markets are closely interlinked. leading european banks are still dealing with bad debt linked to the economic downturn. problems in greece could damage confidence across the system. there would be serious consequences in european banks, including in the u.k., if there is a complete default. >> if greece is not in a situation to continue with the bailout package, a

uk armed forces. we certainly hope as the economy revives in the uk that britain will return to sustain that defense budgetk of nato where it certainly belongs. there's one more country that we emphasize in this report, and that's turkey. if you look at the landscape in europe, the euro debt crisis, if you look at the real-time and power power in the world, with the rise of china, brazil, india globe, with the rise of regional powers, there's one european country that is rising rather dramatically in its power, its influence in the world and that is turkey. i would say person that turkey is more influential in the middle east than germany or france or britain. we've seen a remarkable rise of turkey under the leadership of the president and prime minister urged want over the last many years. and the willingness of turkey to lead and to be active in the toughest problems. and so our report calls for turkey to be treated like a leader at nato. turkey join the alliance in 1952. it's never been given leadership opportunity to is an informal group of four countries. the u.s., france, britain and germany that has

that imposes a risk on france that the uk with coherence of control over its own economy and currency doesn't face. japan, people have confidence in japan. and in the u.s. they don't have confidence in europe. and in europe, it is some states, not all. many are doing very well, but it is some states that are in unsustainable situations. that is something that could have been nipped in the bud and dealt with a couple of years ago. but wasn't. and the problem has grown and grown and grown as a result. and it can still be dealt with, but it requires some choices that thus far, europe is notal to make. i would just say one of those choices is to euro bondize the debt that's denominated in euros and then have a collective process for issuing euro denominated debt. that would be a huge transformation of the way things look now. is that going to happen? i don't think so. >> we did that in the '70s when i was a small trade with new york city. the template exists. it's one, two, three. you add a big premium onto the interest rate and you create a junk bond but by the way, you have a lot of peo

the powerful german economy is showing signs of weakness and in the uk the double-dip recession is worseoriginally thought. the impact of the converging crises could damage the u.s. economy as president obama heads into november. ben, it is bad out there. what, i mean, what -- and obviously no one can look into a crystal ball, but in terms of the future of the eurozone, it really sounds like greece may leave. there seems to be plans being made among the eurozone countries for a greek exit. >> there are contingency plans made in the europe nations. why didn't they make these sooner are repaired for a eventuality that greece could step out? greece, small economy, side of rhode island, on paper, shouldn't be a big deal. they had no idea how it would exit the eurozone and how to replace the euro with its own currency. the problem is investor panic, see greece come out of the euro, pull money out of banks. we exposure to european banks in the united states. we don it would be a dent to gdp, be a real problem. greece comes out of the euro, banks start to fail, italy and spain's economies go in

. >> spain has been a mature economy in the eurozone so it attracted a lot of investment from all around the world, including the uk. that is the broad exposure but there is direct exposure because some u.k. firms owned banks in spain. >> loners will watch anxiously to see how they will solve the problem. >> this is bbc news. still ahead, catching a dragon by the tail. free enterprise makes its debut. -- its space debut. the uk prime minister says he does not regret giving jeremy hunt responsibility for the news corp. taking full control of bskyb. adam smith said it was mr. hunt who suggested he should resign. he and tony blair are due to appear at the inquiry next week. and the campaign for scott wren to leave the united kingdom. the campaign is called yes, independence. a millionaire's daughter sentenced to two years in prison for her role in last summer's riots. she was found guilty of burglary and handling stolen goods during the disturbances in london last august. courts heard she had driven looters to shops during the worst of the trouble. hello. you are watching bbc news. these are the headlines. six weeks a

uk. is this more than some in gimmicky acronym? >> i think it has a lot of substance. this was created by the economy intelligence unit after the thorough analysis of the macro economic fundamentals and social variables. i think it has a lot of potential. the recent history proves that the economies are right in forecasting a high growth rate for our economy. >> what are you learning from egypt? >> we have a large population. >> true, they had a growth rate of less than 1%. >> the imf forecasts a growth rate between 4%-6% for the coming three years in egypt and i believe that there is a potential for that kind of growth rate. >> what do you make of this idea? >> i am a bit more circs -- skeptical. they share a favorable growth outlook. however, i am much more on the gimmick aside for a couple of reasons. first of all, the commonalities around these countries. moving from indonesia to colombia. a country with a one for the gdp, indonesia, shy of 300 billion. second, why is egypt in this group? the growth is not that favorable. the assumption that each of the has got good fundamentals is certainly ques

uk will be affected if there is a serious spanish downturns. british banks have lent money to the government. the weak outlook for the economy will keep u.k. growth subdued. british consumers will still be squeezed with inflation above wage rises. >> the lawyer for charles taylor says he will appeal against his sentence of 50 years for war crimes. last month, mr. taylor was found guilty of aiding and abetting rebels in sierra leone between 1991 and 2002. in sentencing, the judge described the crimes as among the most heinous in human history. >> when charles taylor arrived in court, he knew there was no precedent in modern times for sentencing a former head of state. he had hoped that might help him. he was wrong. >> we wish to underscore the gravity of mr. taylor puzzle the trail of public trust. this the trail out ways the distinction that mike i.s.o.'s pertain to the liability discussed above. -- might otherwise pertain to the liability discussed above. >> the judge said that because charles taylor had been a powerful man, he should have shown more responsibility. >> for the foregoing reasons, the trial chamber unanimously sentences you

and the uk from countries that do still manufacture into what you call manufacturing economies?t is to design products that develop technology that the rest of the world wants. and the reason britain has lost all its manufacturing capability is that it's stopped making products the world wants. it used to, b. >> they became service providers? >> certainly that. the service sector and banking sector seem more sexy. but they lost confidence in manufacturing and they for goat engineering and design is incredibly important. it's the product that's important not the business or banking. people in china and people around the world, europe and the united states, they buy products. like the iphone and hopefully the dyson vacuum clean, whatever it is. and world's biggest companies and manufacturing company, they're the not service companies like mircosoft. they make real things. >> smexplain this to me because you say the reason companies go to asia to manufacture things is not solely because of labor costs, which are substantially lower than they are in the west. it's got more to do wit

economy in trouble. look at japan as one of the highest debts in the world. uk has actually a higher debt than france has and is borrowing at lower rates. united states is borrowing at historically low rates even though we have a big debt. i mean we're getting kind of lose in how we talk about these things. the economist, frankly, don't really know how it works. they say you shouldn't have more than 90% gdp to debt ratio. but there's no real theory that those numbers are founded on. they are kind of fulling them from historic research, other things. i just think that, you know, any comments that you have. but i think that we -- things are not as simple as the narrative is making it out to be. >> final question in the back. >> thank you. karen johnson. i very much share some of your concerns. you mention the problem with the public's level of interest on the foreign policy issues. i think there's a missing link here. that slink -- link is the role of media providing accurate information about some of the foreign policy issues that are of great concern to you and

. >> and add into that pile the uk, you've got a whole bunch of other european economies with a deadtio alongside what france has or even higher. guys, thank you very much. gorgeous short with the eiffel tower in the back. steve indicating it could in fact be more about greece. greece's future very much in doubt after the two main parties suffered heavy losses in sunday's election failing to gain enough support to form a ruling coalition. following the stinging defeat, they've both called for changes now to the international bailout terms. >> a national coalition government with the participation of all the forces without any exceptions would declare one way or another their attitude to the eu. no matter what their position is towards the memorandum and the bailout is a meaningful one. it is meaning pl if ful if we c a common program base that is beneficial and secure. >> and again, carolyn joins us from athens. and just to recap a bit, just assuming that some people might just be waking up now especially state side or joining us in the bank holiday time here in the uk, just recap wh

you don't want a lot of austerity occurring when the economy is very weak. the ukurope is starting to show that. >> i would do the same thing. kristy romer in a new york city piece -- -- >> i saw that last weekend. >> do not enact moore immediate ifor making the challenge harder. >> but what about all the labor reforms. >> so can you slice and dies the deference. >> of course been. >> unfortunately the discussion about europe has come down to raise taxes and cut spending and that's their answer to everything and they refuse to acknowledge the strangele hold that unions have on near live 60% of salaries over there. you would agree dismantling that and allowing more ability to hire and fire would be a good thing. i also think the key thing is not to be immediately raising taxes and cutting spending in the way they are because it creates a downward spiral. >> i'm having a deja vu in washington. >> wow, that's right. >> we agreed on the you a then at this tease. i saw the interplay and i said i've seen this before. >> because you would not normally be on the show with

economy going again. the president pushing through a stimulus plan in america. europe pushing through austerity and deep cuts. we're seeing what's happening in the uk. greece on the brink. our 401(k) so connected to it all. david, good evening. david kerley has the story. good evening. >> reporter: good evening. the president said he got it right. and everybody now agrees that jobs and growth must be the top priority right now. there are some new faces running the eight biggest economies in the world and a couple of them are proving to be new allies of president obama who has been asking the europeans to follow his lead. >> growth and jobs must be the top priority. we know it is possible. in part, based on our own experience here. >> reporter: the european economies have been in the doldrums, greece is in crisis, it may drop out of the euro zone. here is what the president is preaching. in the middle of the economic crisis the u.s. went one way spending on stimulus for growth. while the europeans went the other, austerity, spending cuts. now with two 2 1/2 years of growth in the u.s., albeit anemic the europeans are listening. >> the emphasis in eur

the active monetary policy that supports demand in the economy as it has done in the uk. d to be combined for reform and its -- there is a need for proper structure form so they have competitive economies. and then i think the extra element is using the credibility we've earned, the strength of the government's balance sheet to try to deliver finance into things like infrastructure and into credit. and that it's an option to open in europe as well and i think that's what president hollande is talk about. we have gotten in the uk. we need them in erope as well. >> with my right honorable friend and agree that when we look at the scale and timescale of the burma of that fell on west germany, and german reunification, we get a sense of the awesome challenge we could face any german chancellor in trying to achieve fiscal union in europe? >> yes, i think my honorable friend is entire right. this is what i think when some people, and was employed in the question from the former chancellor, implied that german stubbornness is unreasonable. it's understandable. obvious the acting

that imposes a risk on france that the uk, with control over on economy and currency, does not face. they do not have confidence in europe. many states are doing very well. some states are in an unsustainable situation, and that is something that could have been nipped in the bud and dealt with a couple of years ago but was not. the problem has grown and grown as a result. it can still be dealt with, but it requires some choices that thus far europe is not willing to make. one of those choice is the eurobond, and have a collective process for issuing new euro denominated debt. that would be a huge transformation in the way things look now. is it going to happen? i don't think so. >> we did that in the 1970's with new york city. you had a big premium added on to the interest-rate. . lot of people want to buy it >> to close of controversy and no, i think that voters and students are better informed. people have access to all sorts of information through online media, social media, through television, travel. people are a lot better informed than they have been in the past. the quality

economy being in trouble and your bond rates. look at japan. it has one of the highest debts in the world and they borrowed at a very low rate. uk has a higher debt than france has and is borrowing at lower

uk with the continuity of government policy is a necessary requirement for russian to move onward a severe enough warrant for large scale to transform asians said we have been carrying out recently in the economy in the social sphere in a new politics it is very important for those to continue that this is the only way for us to build a strong and democratic society that has the words that going where there will be the rule of law speech in the and social justice where security is ensured than the it was motions to where everything is that's necessary is provided for what it being you might be so fulfilment us down for doing business for creating him in the it is that you win these are the tests that have been my priority as president. i would work as i promised when i too could both i work in an open and honest way deal as serving the people and doing i knew my best wouldn't see it here to help people to be free and confident about their future. and we have that managed to achieve a lot even during the difficult period of the global crisis we fulfilled our social commitments the beacon and we launched the modernization of our economy of course we feel that not everything we're. like what we t

uk, the gilt just over 2%. >> and top officials from the world's two largest economies are holding high level talks at the strategic dialogue in by jink. timothy geithner says america and china share a mutual interest in open property rights and these are certainly some of the issues the united states has long pushed. geithner recognizes china has moved towards a more market based exchange rate, but he does know that the yuan has more room to strengthen against the u.s. dollar and other currencies. he says a firmer yuan will give beijing more flexibility when it comes to balancing growth and inflation. take a look at the u.s. dollar versus the yuan, pretty much unchanged. hillary clinton touched on a host of diplomatic issues urging china to play its part when it comes to diffusing global tensions particularly with north korea and iran. clinton addressed prickly human rights issues which have taken center stage following the news surrounding dissident chen guangcheng. >> as part of our dialogue, the united states raises the importance of human rights and fundamental premiefreedoms. because we believe that all gover

front of a third investigation economy, the levinson inquiry, where you have senior executives who will be talking about their relations with the conservative government in the ukndid fashion and what it does is it just creates this long-term uncertainty about where this is gonna end. i have to say, it is pretty isolated from the u.s. businesses at the moment, in that you look at all of this mayhem going on in london and then you look at the share price here and it is up a couple of percent. >> i was gonna ask you about that you anticipate my question, first, will met mention this interesting twist, where rupert murdo murdoch's "new york post" reporting on this british parliamentary verdict or criticism of the boss took a completely different tack. seen the headline there, probe, myler lied, he was former editor of news of the world, he was in this as well, murdoch, the boss, wasn't mentioned in this "new york post" report until the 11th paragraph. since you mentioned the impact on this side of the atlantic, senator jay rockefeller has sent a letter seeking evidence whether any americans were involved in any of the hacking that went on in any of these news corp

economy. boe is set to be more concerned about stubbornly high uk inflation. meantime the bank of japan signaling a pause in easing. last month the central bank boosted asset purchases by 10 trillion yen. now policymakers are suggesting they prefer to stand pat and try to examine the impact of that action on the the economy. unemployment filings are expected to rise by 5,000 to 370,000. before the bell we'll hear from kohl's. >>> facebook revealing more details on mobile usage, saying the numbers continue to grow more quickly than the number of ads delivered because more people are using the social knelt work on mobile devices. facebook show as very small number of ads in the mobile space so it's a big issue investors are looking at. apple and foxconn will share in the initial costs of improving labor conditions. fighting the perception that their plants are sweat shops. no numbers yet, though, on a cost figure or a split ratio. and con a conocophillips reported to looking to exit nigeria. the sale could help raise about $2.5 billion or possibly more if assets

uk, and europe. and there's two ways to delever ram. you either take the pain with the deleverages and the forces dominating on the economy, which, of course, is spain or you prinl and try to offset the broad money in the economy. >> it remains to be seen. europe has no growth. in fact, in many cases it has contraction as well. it is much easier to reorg nice your economy if you have growth, isn't it. so are we doing this the wrong way around in europe? >> i think in europe you probably need to print some more money basically. we have bun phase of printing and stood back and within europe itself as well. of course, there are parts that are weaker than other parts. so places like spain increasing to hole lard, greece, france, italy where you're trying to attract fiscal deficits in a deleveraging economy. you need more stimulus. you need to print money and so on. we need to currency lower in europe. >> what about the chinese perspective here? they seem to be in a soft spot, probably will avoid a hard landing but at least they're introducing market reform measures. how much support can that give global equity markets? >> china's not going to