can keep cool, as europe's troubles heat up. >> reporter: central bankers from europe, england, and china moved to give their respective economies a boost on the same day, within the same hour. and, don't forget just a few weeks ago, ben bernanke and company moved to keep long-term rates low longer. so, investors are now wondering whether all of the action suggests world leaders finally have a grand plan to rescue the global economy or, could it be the slowdown is worse than we originally thought? economists say it's probably a bit of both. >> there is a big problem. it's why wsee central bankers around the world putting stimulus in place. i think there's a recognition certainly in europe that action needs to be taken. so, that's a good thing. >> reporter: after the european central bank trimmed rates today, e.c.b. president mario draghi raised the economic red flag, noting the downturn was spreading. he said "we can genuinely say that this measure is addressed to the whole of the euro area and not only specific countries." against a back drop of weakening global economies is it even poss

australia and if this is to be ratified by six of those parties europe will not be a part of it europe is considered as one entity the main a concern really here is the loss of freedom and just more monitoring from authorities in favor of those people lobbying commercially for the intellectual property rights of their climbing especially for example the entertainment industry is not for individual for people who are using the internet what they want here is simply freedom to do what they what they see as a very democratic platform and so millions of people had signed on directly emailing any peace sign a petition to the petitions committee here in brussels arguing that the potential benefits of this act of bill of wanted to bring through is far outweighed by the damage that it could bring david martin who was steering this act to bill in the parliament had actually said that the devil in this case is in the lack of detail it was so vague that it is indeed passages opens the floor for interpretation of possible jailing of individuals and so he says that the european parliament is simply

let me give you some examples of what is happening in europe today. britain, a lot of people don't know that. britain has today around 60 official sharia courts. and one of these courts settled an inheritance dispute involving a man whose estate had to be divided between his children, and that sharia court in britain gave the sons twice as much as the daughters in accordance with the koranic pronouncement that a woman is only worth half of a man. and in my own country, the netherlands, sharia is being applied. i know it's hard to believe, but sadly it's very true, and, that ladies and gentlemen, is a disgrace. in our civilization, men and women are equal before the law. [ applause ] ladies and gentlemen, please make no mistake. islam is also coming to america. indeed, it has already arrived. your country, too, is facing a stealth jihad, an islamic attempt to introduce sharia law bit by bit by bit. islam demands already in america today separate campaign housing for muslims. islam demands that women have separate hours in gyms and swimming pools. schoo

this europe, this europe is on the verge of disappearing. in each one of our cities both an italian author shortly before

process of discovering in europe. and that's high growth the last couple of years. and start for example this year. the other thing is we're not really strongly represented in some of the economies that are weakened. so we have a small business in italy. our business is concentrated in the uk and ireland, and france, and coming stronger. i think as a result, our overall performance in europe has been pretty darn good. >> susie: it looks like a repeat of m.f. global, but this time, the fraud appears to be smaller. more than $200 million in client money is missing from p.f.g. best, the futures brokerage firm. federal regulators today sued the firm and its chairman russ wasendorf, sr., for misappropriating client funds and submitting phony bank records for at least the past two years. the national futures association froze p.f.g.'s accounts late yesterday, after the company reported wasendorf had attempted suicide. he remains in critical condition. we spoke with wasendorf back in november as the futures industry was grap

it's still unclear what's going to happen in europe. >> right. >> and if europe blows up, then that is going to explode a lot of business plans of a lot of companies. it's not a bad idea -- to keep money on your balance sheet. >> we have to take a break. when we come back we will discuss whether europe will blow up. whether there will be another oil hike. stay tuned. [ male announcer ] citi turns 200 this year. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. so why should our anniversary matter to you? because for 200 years, we've been helping ideas move from ambition to achievement. and the next great idea could be yours. ♪ >>> we are back with zanny minton beddoes of "the economist,"" zachary karabell, chrystia freeland, and larry kudlow. zanny, the thing about europe that surprises me is everybody says it's going to blow up. and somehow it doesn't. i mean, things are a mess, bond yields go up, it's harder for them to borrow, and there has v to be some emergency -- at

this europe, this europe is on the verge of disappearing. in each one of our cities both an italian author shortly before she died in the year 2006, in each one of our cities there is a second city, a state within the state, a government within the government, a muslim city, a city ruled by the koran, end of quote. and perhaps many americans see immigration as something which is inherently good for our country. since i know it contributed in the past so much to the united states, but while most of the former immigrants to the united states came from europe, a continent with the same judeo-christian heritage and roots, europe contemporary immigrants do not share, do not share our common roots. on the contrary. the islamization of our society today in europe is undermining that same western judeo-christian values. and i'm not talking about the threat of terrorism of violence alone. there is also the phenomenon of non-violent jihad. europe's increasingly assertive islamic lobby has successfully pressured european politicians into implementing p

what's the real danger in europe now? >> well, the interesting thing is the last two weeks, the market went from focussing on the macrostory to the microstory, basically looking at earnings which actually have been better than expected, hence the market kind of grinding up higher. now, on friday as earlier you're mentioning in your program, valencia, one of the regions in spain is basically asking for a bailout from the larger spanish government. this is nothing new. if you just look back a couple of months back, one of the largest banks in spain, b bancia was partially nationalized. the markets in essence had just switched gears and foe kiss on the micro, and are looking back and realizing that the situation in spain has really not been resolve and we're dealing with the same structural issues we have been for the last couple of years. >> susie: you know, investors everywhere knew the situation in europe is not over and i think what's really worrying everybody is that the view that spain got this big bailout on friday, a

well it's it's a late stage phenomenon it feels to me in the western world where if we look at europe and the us exclusively. these are these were the powers that emerged in the second world war and there they emerged and strengthened throughout the ensuing decades because they were relatively free market societies and the us has been a free market society for a long time. so as those economies have progressed they have become. a lesson free market oriented to the extent that the zero eight crisis opens the door to government manipulation on a monumental scale so instead of doing what a healthy organism would do which is to say ok i got up i took a trauma blower i got sick i'm going to just heal instead of keeping dosing ourselves the governments have been involved in in sending bailouts to every possible place they could send a bail out running up that's the process they have been manipulating almost every single credit market whether it's sovereign debt whether it's the debt financial institutions whether it is. mortgage debt now student loan debt and the list goes on and on and on

they talk about the overall economy, and europe. a lot of people say banks would lend to people, but only to people who don't need money with really great credit. so they're very risk averse. >> i think it's fair to say this is a lolt lot of regulatory clogs, and giving people jobs writing rules. hard to judge that. >> susie: and more rules to come. the one thing that people at home want to know is has the way of dog business in the banks and the financial institutions khiefrjed? as the culture changed? what is the attitude toward taking risk? has that changed? what's your sense? what are you hearing? has the culture changed? >> that's a great question. here's what i was told today. banks when they look at making investments and decisions they start to think about regulations. some say good, they're being more careful. they're thinking about what they can and can't do, and maybe after what we've been through, we want banking to be a quiet boring business again. other people say no, like the ceos are saying it's innovation. the real

just today, ups and dupont did a but-for, and you could only wish they could asterisk europe, as if europe somehow doesn't count towards earnings because it's dragging down both the tops and bottoms line. ups, which was the most negative i have heard of any company, because they were the precursor to last year's decline. they didn't have a good word to say about asia either. they're talking about business falling off a cliff. even mcdonald's had to talk about how you needed a super super value meal to attract diners. in germany, a value meal isn't enough? get a super value meal. mcdonald's sited the ennui in europe for the reason for the slowdown. customers final understand things aren't coming back anytime soon. this is burgers and fries we're talking about. unlike europe in the united states, though, the genuine chinese politicians, yum brands has echoed the negativity. yum's sales weren't as robust as they were and neither were the sales of mcdonald. of the tree sets of politicians, the europeans, american and chinese, the communist recognize the imperative growth of capitalism to provi

europe. those who tipped the scales in favor of one side lose the other. >> more than 12,000 legal challenges have been lodged with the court. plaintiffs feared germany is giving away too much power to brussels. >> we do not want people like you and i, voters in germany, to wake up tomorrow to find that we are allowed to vote for german parliament, but that parliament has ceded key elements of laws governing budgets to europe. >> the court has invited a large number of experts to assess the case. the german government is represented by the finance minister, who warned that the markets could lose confidence if the new bailout fund is delayed. >> i am please we are having this hearing, and i hope that through a thorough examination of the case, the constitutional court will issue its ruling soon. >> first of all, judges have to decide if the federal president is allowed to sign the laws already passed by parliament. if so, they could come into effect, even if the court were to rule later that t

is dead agrees it was a disastrous spirit europe europe is a cultural scene poor. it's significant that's what happened that's what your welfare state just took us out of the. experience with a socialist dream paradise of sweden and i can tell you it is nothing like the other party the global politics sea change also made waves but two more on the guest list the eminent thinkers tariq ali and chomsky the world protest movement showing modern politics are no longer fit for purpose to them the answer could lie in latin america you mentioned a couple of times one of the most striking things that's happened there is the most repressed part of the population of the hemisphere the indigenous population has moved into the. political arena i want you know i am not defending it i think he is a dirtbag i think he is a dirtbag he obviously has no problem using his fifteen minutes of fame to sleep with anyone who is crawling dividing media opinion but getting real people talking julian assange show hit the ground running and the public on the twitter sphere have an appetite fo

just defend europe and united states to skate take care of its issues i mean. decouple i think that i think there certainly is a need for greater security integration in europe particularly look at the expense we have a lot of countries now in europe are cutting back on that force is already too much duplication so i'd really like to see some kind of uniform unified security for force in europe but i think it's also important to look at nato whether we got them the successes or failures we talk to and nato interventions but i come back to this point there's a lot of things that happened in the world which nato manifestly didn't we didn't get involved in to give just one example to rwanda and genocide so obviously the security setup we have in the world at the moment isn't meeting its needs and that's why i think we need this new infrastructure this is new tech to be able to meet the needs of the world of the modern world george what do you think about that would you like. me go to georgia or would you like to see need to expand i don't think it's a question of

housing bubble and bubbles across spain and greece and other sort of places in europe that seem easy money also lifted the good streets of many emerging markets to up normally high levels and i think what we're seeing now is that investors appetite for risk is coming down and that easy flow of capital from western financial institutions into these developing economies is no longer that easily available so in this environment i think we've got to go back to that all rule of emerging markets which is that fear is as or if not more common than success some countries will do well some of it is not but will depend on each country and its own merits to really be break out nations this decade so the whole point is last decade it didn't matter which emerging markets you would in because you practically made money by being in every single developing country this decade i think it's going to be a game of much greater difference see asian as it used to be or has been you know there are about one hundred. economy used to be in the global economy thirty five developed economies everyone is sort o

of the rise of notions of extreme nationalism into europe on the. emotions of a number of the four terrible fascist. regime so that so the less there is a historical lesson there is that there is a great danger that develops now i don't see is by any means being. simple i think the difference between now and then is that democratic culture democratic institutions are much stronger in europe than they were before the second world war so i'm confident i'm hopeful that european democracy can subodh its current across do you think talking of democratic institutions to think that a politician with anti-democratic views could rise to power through those democratic institutes but that that's exactly what happened in the case of hitler didn't it and that's what happened in a number of other countries in europe but before and all for the second world war so it's it's a distinct possibility that it will be a challenge it will be a test of western democracy not just western democracy but european international democracy kind of if you survive the challenge of

australia and if this is to be ratified by six of those parties europe will not be a part of it europe is considered as one entity and the thing is those who are supporting actor really wanted to get the european union on board because this will have more clout in terms of what they want to accomplish in enforcement of the law cooperation basically for you the merger of all of these but now that europe is out of the picture it will certainly diminish the kind of control or power that this agreement will hold if it is indeed ratified by six parties who had initially signed on to this agreement. we're seeing live pictures there from the european parliament the agreement sparked mass protests across europe why exactly were people so concerned about what could have happened if this bill went through. well the main concern really here is the loss of freedom and just more monitoring from a florida in favor of those people lobbying commercially for the intellectual property rights of their climbing especially for example the entertainment industry is not for individual for people who are usin

and europe could find themselves on very fresh but unconventional attack british m.p.'s say the u.k. should declare cyber war on states and organizations which target it by carrying out aggressive hacker attacks itself. if you can't beat him join him that seems to be britain's new attitude when it comes to dealing with attacks a new report by the u.k.'s intelligence and security commission has concluded it's not enough to defend. attacks additionally the military and spy agencies should be actively declaring some. enemy state attack evidently is in their view the best form of defense although in this case they're calling it active defense. barry voicing that britain should be secretly hacking into enemy systems using programs like the stuxnet virus which disrupted iran its nuclear enrichment program it comes just two years after the launch of a six hundred fifty million pounds national soluble security program but progress according to the m.p.'s on the committee has been slow the national security strategy ranks the threat of cyber attacks alongside that of terrorism a

top stories europe makes. big corporations and president of the web. war of words a dispute over russian to be used in ukraine. crowds. everything in the universe exists up next america. has taken a battering in recent years. good afternoon and welcome to capital account on laurin the store here in washington d.c. these are your headlines for tuesday july second two thousand and twelve mexico has elected a new leader reportedly the opposition candidate from the former ruling party and he's promising to put the country back in the big league of emerging economies and we'll talk to the author of breakout nation route share sharma about one takes to be a breakout emerging economy and where some of the up and coming booms are likely to be seen also today commodities specifically industrial raw materials lead reported they are concerns about growth and future demand as our guest puts it the game of economic growth is one snakes and ladders so looking ahead what do those countries climbing up versus those sliding down mean for commodity prices and our centra

and economically for europe those reforms need to be more financial support, if you leave europe, will is, there is a good way to think about the challenge if you lead europe to the edge of the abyss and leave it just teetering on the edge of financial disaster, it will be much harder for the strategy to work. >> rose: some say the chancellor merkel believes she can always come in and rescue at the last moment. >> that's right. >> rose: and that's her operative philosophy. >> that's right. now, to speak in her favor, as a strategy, she is very worried about is that if they relieve too much of the pressure, the incentive for reform will fade, and they will have spent a bunch of the taxpayer's money in germany without any real return to make europe work better, so he is right to be worried about that, if you were in her shoes you would think the same way, the balance is if you leave europe on tej of the abyss as your source of leverage your strategy won't work because you will raise the ultimate cost of the crisis, much more expensive to fix and you a lot of damage to the politics of tho

they say they consider the measures as a bite minge plan europe affecting opel. its top executive has resigned.el is >>> gm said the chief executive officer of accounts with yahoo! are busy changing theirin hundreds of thousands to in cuers and is incident will affect confiden an attempt to restructure. in may board say in attack buys government forces and observato launched anthe hamma regis takes. meanwhile, syria how to stop country willdr of using cluster bombs. human rights watch said the assad . >>> foreign ministers from southeast asia are wrapping joint statement at the end of their discussions. itof territorial disputes in south doggaesn gather ministers began their meet inging onslan ment off the shoals in the sea.hs. from cambodia which chaired the eenoint effectively suspended thursday when the philippine foreign minister returned toapanese foreignl minister not intervenefully dissolve the torele yal >> reporter:nister in south china to showts in the east china sea. where they oversenkaku islands. gemba claimed that many countries participate in the j

the whole of post-war poland has been working hard to build the image of europe's most tolerant country to legalize soft drugs and prostitution as well as same sex marriages freedom of opinion and liberty are the call values of the modern netherlands. coffeeshops. status will be all. that i will be no. there will be no fear. on the streets so the youth will be protected so they won't be doing hopeful things. these young people are representatives of the islamic organization shari'a for holland there are groups of this kind all across western europe only recently to great britain banned a similar group of islamist the chief mission of these orthodox muslims is to establish shari'a law that's the combination between democracy and sharia it's either democracy or syria. the same is the twenty nine year old leader of shari'a for holland even though he is actually of moroccan descent christine was born in the netherlands schooled here and is fluent in dutch and english. but at the same time he rejects western values and meticulously observes all the rules of the qur'an. for instance he would

lingering concerns of europe. mixed jobs day hangover added to caution ahead of the official earnings season kickoff after the bell today. that's where we are getting all this red. it is risk-off trading. nearly all major sectors are lower. materials in the energy are trailing most of -- if i move out of the way, you can see thooefr here on the far corner and move down almost a percent here. health care, though, holding on to some gains of less than an hour left to trade. wti crude oil prices gain being 2% at one point as the strike in norway could show production important the world's fifth largest oil exporter. energy equities selling off on global growth concerns. we don't have them behind me but trust me, they are. health care getting a boost today as the nation's second largest insurer wellpoint acquires medicaid coverage amaregroup. cough -- coventry health and aetna. >> as you heard investors are getting desperate in europe to try and, you know, prey serve some of the capital and just make sure they manage

the more possibilities there offer people to europe which. distorted accounts. of the war so i think it's partly a function of of the distance we've got to travel from war to partly explains. this development of nationalism out for national mixed emotions in europe but then because the moment the main reason i mix to do with contemporary politics i knock an economics role but that. history now and that's that's not to say that history isn't important of course because there are many many lessons of history which are rather to the contemporary crisis seem relieved to have faced the worst crisis that here are right now is experiencing if that is to last or get worse that will also. but it would also incite that they rise of more national nationalist sentiment i think there is there is a great danger of that if the eurozone collapses the e.u. collapses the most likely. it will be replaced by a different forms of national. question is what forms a national some extreme and dangerous take on herself i think there are great dogs and of course that's the historical les

a lot of talk of people in europe that needed to lighten up here, margin calls in europe. at any rate, heading in to the european close, the dollar came off of the highs and maybe some of that selling pressure over europe abated a bit. slowly moving up here. regained 100. i just want to note, though, there are a number of big sectors entered correction territory. financials a little while ago but today energy and tech. down 10% off the highs. industrials interestingly not having that bad of a day. eaton with numbers better than expected. revenues disappointed and the guidance wasn't very good and not as bad as some people feared and companies with tough times in the industrial space trading to the upside. finally, a ban on short selling of spanish stock seems crazy stupid to me. they had a ban on short selling financial stocks august of last year to february of this year and you can see, sue, not prevented the spanish market from falling further. they need to think more clearly about this. hurting spanish stock trading and volumes back there. >> i would agree with you. ber

united states have been doing great compared to europe. but in absolute terms, things are not so hot here. [ booing ] >> i mean, it seems to be impossible to come by any growth in this country. witness the second hard employment number in a row last friday. meanwhile we know congress will never pass any kind of job creating stimulus. we have a looming fiscal crevice or maybe a gully that has everyone and his brother panicked. and the 30-year treasury is signalling forget about it. the economy is dead on arrival. be afraid. be very afraid. in short, we need to prepare ourselves for the possibility -- the possibility -- of a recession. that's why tonight i'm giving you a diversified portfolio. five recession resistant stocks that will do better than most if the economy keeps slowing down. that will be the trajectory worldwide. how do you protect yourself? first of all, it means lower commodity prices as demand slows for every material under the sun. we want a company hurt by high commodity costs who passed on the costs to the consumer. at th

less europe, not more europe. lest he talks, lesser bureaucracy and less meddling in issues that allow to nation- states. all party leaders will have to address this question. far from the ruling out a referendum to the future as a fresh dill in europe becomes clear, we should consider how best to get the consent of the british people. speaker, as the eurozone moves to a banking union, we must ensure britain takes responsibility for sorting out its own banking sector. only on folding banking scandal here in uk, we need to take action across the board. introducing the toughest and most transparent rules on pay and bonuses of any major financial center in the world, increasing the taxes banks must pay, answering tough and civil criminal penalties for those who read the law and clearing up the regular -- the failure left by the last days of government. the british people want to see two things -- bankers who acted improperly punished and they want to know we will learn in the broader lessons of what happened in this

europe, i am not as worried about europe. i agree with bill. i think we are out of the wood economy is improving and china goes into the tank that could hurt our economy. we have a bless rate. and we are going to have to wait until the end of the decade to get it below 7 percent. and do you think that that is a issue? >> we have people in washington d.c. that think raising taxes will grate jobs. >> they want to just give consumers money. people say the government is dumping more money out. they will not expand businesses. they know it is mempary. we need to lower the capitol gains rate. that spurred a bomb in the economy and stock market. i mean, california has an unemployment rate at 12 percent. i said this before california's unemployment rate should not be where it is. especially the growth they am see will in silicon valley. for decades tax and pend. bomb and bust reality. it is important to look at europe and americans are looking at europe and saying is that our future and are we going down tho that path. five or 10 years down the road. >

in other words, it might be a slowing europe or contractionary europe makes them cautious in the back half of the year. one more reason why you are not seeing the m & a activity you talked about at the top of the show. c.e.o.s don't have a lot of confidence. i think will you see that come through on second quarter earnings calls. >> susie: all right. a lot to think about. nick, thanks so much. nick colas, chief market strategist at convergex group. >> thank you. >> susie: a record-setting fine today for glaxosmithkline. the drug company is pleading guilty and will pay $3 billion to settle charges it illegally marketed drugs, and withheld safety information from regulators. that big fine makes this the largest health care fraud settlement in u.s. history. as darren gersh reports, the punishment covers wrong-doing related to seven different drugs. >> reporter: federal prosecutors say the criminal charges and huge fines imposed on glaxosmithkline will send a message to the entire industry. >> we will not tolerate healthcare fraud, and in every instance where we uncover it, we will use al