g gemma godfrey joins us tonight from london. thank you for staying late, as always. >> thank you very much. >> two things that happened last week affecting the market, i think, this week. last week the ecb cut rates on thursday. then we had that very strong jobs report on friday. what do you see happening as we go into this new week here, gemma? >> well, the concern that's starting to eke out in terms of the ecb rate cut is the fact there was german opposition to this cut. the cut itself was maybe at best symbolic, at worst shambolic but it disincentivizes banks to lend. rates are already so low so it doesn't make much of a difference. what's coming to light now is germany opposed this rate cut. which means there's growing discourt in europe. in the next few weeks, european leaders have to sit down and hash out the strategy for how they're going to have structural reforms. these are reforms crucial to economically solidifying europe to coming out of the recession and actually have that greater tangible impact. >> it's a great po

gemma godfrey is live in london, and joins us now. gemma, nice to see you. >> hello. >> are 3% rates a bull market killer? >> well, 3% is the level that investors are looking at. but where most of the risk has been stored up is in emerging markets, especially the areas that have the highest foreign ownership. because when liquidity is withdrawn, the economies, if they haven't done enough in terms of actually looking domestically to support their markets, they are the most vulnerable. and the term that's being bounded around at the moment from the likes of morgan stanley is the fragile five. so that's indonesia, india, turkey, brazil, and south africa. and we saw from indonesia just today the third rise in rates since august. so we're talking about rising rates, and now there already is a problem of inflation. so i'd be very concerned and very cautious in the way i would trade this type of market. i wouldn't say it's about being a bull or a bear. but about being eagle-eyed and going in and being much more particular country-to-country