mario draghi still addressing european parliament. he has been trading quite -- treated -- treading a neutral line when it comes to monitor policy. a now from and lawmakers, one thing that has come through is mario draghi reformat the u.s. tax will reshape the global tax landscape and also said they are doing much more gender diversity. so the euro has barely changed while he has been speaking. this is bloomberg. reform will reshape the global♪ vonnie: live, this is bloomberg markets. deutsche bank. it will sell shares in the ceo is under pressure to get the plan backup on the right track. joining us now is the bloomberg finance team leader michael moore. why now? >> this is something they wanted to do. they were talking about it last year as part of a shift in the strategy. that was in response to concerns in the capital level. we saw banks raise capital last year. this is about bolstering business. john had a lot to do. i think they are just now getting around to executing on this. it seems like the market is still at a decent lev

also, ecb president mario draghi delivering his report to the jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head to the final spread. coming up over the next week, we get a rate decision from the bank of england with boe governor mark carney delivering that. european parliament, his annual report. we get another round of earnings including tesla, and once again, there is the potential for another u.s. government shutdown, which most investors have become desensitized to at this point. with me now is lisa, kevin and eric. lisa, we were talking about central bank decisions before the break and what this means for peripheral europe and the ecb. one thing that people have not started thinking about in a big way yet and rightly so because it is a 2019 story, is who runs the ecb next? i'm surprised by how governor kuroda is to the bank of japan. the next person that takes over from ecb president mario draghi will have some big shoes to fill. when you start thinking about the ecb post-draghi? lisa: i told you i am short btp's. jonathan: so you're hoping it

the next person that takes over from ecb president mario draghi will have some big shoes to fill. when you start thinking about the ecb post-draghi? lisa: i told you i am short btp's. jonathan: so you're hoping it is a german who takes the top spot? lisa: i think that may be the case. it is a selloff environment for european bond yields that have been anchored by the ecb program, by low rates, etc. it is a totally different set of members as well. it is a different cast of characters, so we are looking forward and we are trying to make expectations based on what they are telling us. it is a whole different fed this year and it could be a whole different ecb next year. jonathan: kevin, let's think about it. you are at the bloomberg terminal one morning and the headline says he is the next president. do you react to that, should you respond to that? kevin: not immediately but i think there may be a shift in focus. much like it has been a pro-usa or pro-america focus since donald trump was elected, that maybe there is a pro-german focus within the ecb or within the european union. th

also, mario draghi delivering his report to the european parliament, his annual report. we get another round of earnings including tesla and there is the potential for another u.s. government shutdown, which most of us have become desensitized to at this point. with me now is lisa, kevin and eric. lisa, we have been talking about central bank decisions before the break and what this means for peripheral europe and the ecb. one thing that people have not started to think about in a big way yet and rightly so because it is a 2019 story is who runs the ecb next? i'm surprised by how governor kuroda is to the bank of japan. the next person who takes over from ecb president mario draghi will have some big shoes to fill. when you start thinking about the ecb post-draghi? so you're hoping it is a german who takes the top spot? lisa: i think that may be the case. it is a selloff environment for european bond yields that have been anchored by the ecb program, by low rates. it is a totally different set of members as well. it is a different cast of characters and we are trying to

i also want to ask you about mario draghi. we have been hearing him testify before the european parliament. when it comes to growth and inflation and monetary policy, he has traded a fairly neutral force as you would expect his final appearance before march 8. what are you expecting this year in 2018? are you expect in the hawks to come out more enforce? not really. if you look at what has happened to the euro, that will put quite meaningful downward pressure on inflation. the notion that the ecb is full hawks will parade sometime this year is misguided. you will see downward pressure on core inflation, particularly the imported inpatient -- inflation in the eurozone. they are in no rush to raise rates at all th this year. nejra: i have a chart and that does point to what jpmorgan is saying, that the outperformance of cyclicals have not yet peaked. how are you investing in europe sector wise? mike: even though base rates in the eurozone are going to remain at these low levels come i think you're probably going to see further s

who will replace mario draghi? there's on kind of eu decision-making driven by all sorts of political calculation. if a southern european takes the deputy's role and its seeming much more likely that the new president will be a north european and you have a very helpful feature on your website -- nejra: you say they might be german and that might be a faster pace tightening? stephen: i think a bit more than that. i think it's a complete change in style and direction if we have the very hot favorite. mario draghi is an italian. he is a goldman sachs alumni. he's a believer in intervention and he's created a narrative that because inflation was undershot in the eurozone, then we will allow to do all sorts of unconventional policies. i think they will completely reject that in my opinion. nejra: overall you are seeing declines in your hanging that largely on this withdrawal a stimulus globally or something else? stephen: i'm saying there's a trigger. jay powell is now the chairman. we have a new personality. what do w

gdp plus mario draghi and theresa may will both be speaking. to wrap things up, matt, kathy and mike. matt, what are we looking for from chairman powell? >> i was reading the transcript. there were enough interesting speeches from powell. i think he will have his eye on financial stability more so than we have seen for other chair people. with that in mind, even though we don't see risks to financial stability today, if financial conditions can ease as they are trying to tighten monetary policy, that will change. that will encourage the fed to a salaried the pace of rate hikes. -- to accelerate the pace of rate hikes. that is something that will continue. jonathan: will we finished near 2%? >> they will be substantially lower than they are today. as the market is forward-looking and by the time we get to the end of this year, we think investors won't have as bright and outlook as they do today. people are very bullish on everything today except treasuries. we think that will be different. kathy: we think the 10 year rates could peak of about th

mario draghi is the president of the ecb. he is giving his opening statement to the european parliament. he says the ecb still can't claim success in its struggle to restore inflation in the euroyen area despite -- bureau area despite strong economic growth. we will discuss in just a minute. this is bloomberg. >> household incomes rise. this has helped to strengthen private consumption growth. ♪ mark: live from london, i am mark barton. vonnie: in new york, i am vonnie quinn. this is the european close on "bloomberg markets." time now for stock of the hour. fargo are thes biggest loser in the s&p 500. the federal reserve stopping the bank from growing until it addresses its shortcomings. joining us now is taylor riggs. a real slap on the risk for wells fargo. enough,interestingly while having its worst day since 2011, it's been up a little bit. if you want to call it a little bit of a recovery, there you can. there is some headline news and in the fundamental news. the analysts we were looking at were really looking at the

mario draghi tells the european parliament that uncertainty remains and he's not ready to reduce support. later we bring you our interview with the president of the bundesbank. ♪ a very warm welcome from right here in our blood body. we have a great day ahead of you. many important figures speaking to the conference and they will speak to bloomberg. we have a real rally on our hands and a potential for more momentum. or do we? bitare looking at a little of a global risk on momentum. before the powell testimony is saying sustained growth is there but he doesn't want to kill it off with high rates. oil inventories could rise by 2 million barrels. in february. 1.5% the best january in a decade for the oil market. this is dollar-yen. the worst quarter in dollar-yen in four years. still the market is hungry for a bit of en. of yen. 2018 special items will be slightly rising. this is a forward-looking statements. that missed the estimates given the growth that the imf and the world and the ceos talked about. about slighting sales growth for 2018. estimate.eat on the would you have there is a

at 9:00, mario draghi speaks to the european parliament. at 10:00, will get the data for new home sales. alix: we will take you through the top three stories. xi forever. also we have a bond bear, bond cold situation. morgan stanley says by. david: to go over it all, we are joined by lisa abramowicz. xiant to go into thisx forever. the committee announced that it proposed -- that is limited the president to two terms. this is in vance of a parliament meeting. -- this is in advance of a parliament meeting. -- that is growth not that growth of gdp but the rate of growth of gdp. blue line is the shanghai composite. that is level. he hasn't done to better job. lisa: they love him and he is trying to cement his putin like status. he is in a second five-year term. he is in his mid-60's. there are a lot of questions. he has a heart attack ahead of him last month -- a lot of -- he has a heart attack ahead of them right now. stocks and bonds in china are rallying because of political uncertainty is viewed as a good thing. as we saw and what we will

mario draghi sticking with stimulus, telling european parliament that uncertainty remains and he is not ready to reduce support. , the shakeup continues kingdom replaces top military commanders and opens the door for women to enlist. apple considers radical expansion plans for the iphone, three new devices with a big new tablet for mobile. ,:00 a.m. across the emirates 12:00 p.m. in hong kong. embraer of the global financial markets embraer i am yousef gamal el-din. over 3000 delegates expected at the global financial form. we have some big interviews throughout the day. as to to give you a tease who will be involved. we will speak to the ceo of one bankny and the central governor of the uae. the list is long. i want to shift to the real-time market action. an asian session that makes the u.s. handoff a positive one, u.s. stocks at a four we cai. -- week high, so investors holding their breath. the nikkei is punching on come gains in terms of automakers and banks. quite a bit of pressure on chinese stocks, really the standout on the gmm. in the fx space, the bloomberg dollar index looki

still ahead, featuring comments from both jay powell and mario draghi. we will have that conversation very shortly, this is bloomberg real yield. ♪ ♪ >> i am jonathan, this is bloomberg real yield. it is time for the final spread. coming up, one of the main highlights will be the new federal reserve chairman jay powell, testifying before congress. we will get a fresh round of economic data including numbers on just be plus mario draghi -- u.k. prime minister theresa may will both be speaking. to wrap things up,, matt, kathy and mike. matt, what are we looking for from chairman powell? >> i was reading the transcript. they're interesting speeches from powell. i think he will have his eye on financial stability more so than we have seen for other chair people. with that in mind, even though we don't see risks to financial stability today, if financial conditions can ease as they are trying to tighten monetary policy, that will change. that will encourage the fed to a salaried the pace of rate hikes. that is something that will continue. jonathan: willi

featuring comments from both jay powell and mario draghi. we will have that conversation very shortly, this is bloomberg real yield. ♪ ♪ i am jonathan ferro, this is bloomberg real yield. it is time for the final spread. coming up over the next week, one of the main highlights will be the new federal reserve chairman jay powell testifying before congress. we will get a fresh round of economic data including numbers on gdp, plus ecb's mario draghi and theresa may will both be speaking. with me to wrap things up, matt hornback, kathy jones and david riley from bloomberg asset management. matt, what are we looking for from chairman powell next week? >> i've read every speech he has written, i've read the transcripts. jonathan: couldn't have taken long, there weren't many. >> there were a number of interesting speeches from powell. i think he will have his eye on financial stability more so than we have seen for other chair people. with that in mind, even though we don't see risks to financial stability today, if financial conditions continu

draghi has to step down next year. we got the new vp announced. do you think that has bearings on policy or some steps they'll decide to do >> the interesting thing to us is the two key people communicating the ecb policy beyond mario draghi is the vice president and peter pratt, the chief economist. they always did the job of providing keynote speeches after every press conference, doing interviews, if you went on and read the speeches, they put it into context what the ecb was trying to achieve. we'll have to see what happens communication will be key. i'm hoping that their communication doesn't suffer from the departures. phillip lane is still in play on being chief economist when peter pratt steps down next year we just don't know it's normal horse trading in the eu >> certainly lots of moving parts. it looks like fundamentally the data is strong thank you very much for joining the show that was david owen from jeffries international i just want to bring your attention to a couple of coca-cola flashes. we can see c

the bigger question is around mario draghi, when he goes and he steps into the issues. the survey that we have done said that the environment is up there but also others. expectation? james: it has the potential to make a lot of difference. while it is a very difficult job to craft a message which doesn't reflect the view of all council members, it does lead to tilt the message more toward mario draghi's personal leanings. if we were to get a german president that does have the potential to be seen by market -- by markets as a hawkish shift. survey, it does seem to be streaks ahead of the of will hexpectation take over from draghi. we'll have the vote around the vice presidency. we don't really know. does the vice presidency have the ability to shape the dovishness hawkishness? james: the speech can move markets. we assume the market believes, extrapolates as having credibility. if we were to look at the previous vice president, we haven't had a lot of huge market moving rhetoric from him. i don't think the vice president role is a significant from that perspective. ann

secondly, who is likely to replace mario draghi the second question we won't know for some time but i think markets themselves are likely to still look at it with a fairly cautious view. so we also expect to see five-year yields particularly in europe go higher we've actually recommended this morning to be selling the five-year part of the european curves because of that >> guy, thank you very much for joining me this morning. >>> up next on "worldwide exchange," a call to action. the latest on the big push for gun reform in america. we're live in washington with orwi etails on that when "wlddexchange" returns that binge watch over the weekend thing. that back from the dead or robot-cowboy thing. or maybe it's watching satisfyingly-satisfying things. organic avocado on everything thing. doing it yourself or tagging a friend thing. more checking-in or checking out things. like faaaaaaaaaar out of this world things. far out. more revolutions in the making thing. that play like a girl thing. is it a '4 your eyez only,' thing. more of a 'no role modelz' thing. that triple-double thing. "i

not mario draghi personally. at the moment there are possibilities, looking into the , perhaps going to frankfurt and working as a governing member. guy: i don't do have to put this more delicately. have you ever been offered a bribe? gov. rimsevics: no, i have been hinted. these are very thin ice things. that hint?u report gov. rimsevics: no. guy: why not? gov. rimsevics: that is a good question. usually you think maybe i misunderstood, let's see how things are developing. the bank of latvia, the most important thing is we have nothing to do with commercial banking supervision. to thatt to come that issue, you say is a good question. credibility of a central bank is extremely important. we can put the regulatory issue on one side. but i'm curious to know why you didn't -- even the merest whiff of impropriety, why didn't you report that at that point in time? that would be a fair thing where you can say now, that happens then but i reported it. you can imagine, if i had known that this thing was going to develop

what does that mean for mario draghi and his successor next year conrad. well the written rule in the eurozone is that if a man from the south or a person from the south becomes the vice president of the european central bank somebody from the euro zone's north. has to become the president so that now after the nomination of the who is the go in windows from spain as vice president of the e.c.b. the chances are rising for young man our man from the bundesbank here our reserve bank in germany to eventually succeed mario draghi when he leaves this post in the autumn of twenty nineteen conrad who's in first in frankfurt a financial correspondent thank you. now today it's back to work for traders in asia after the lunar new year celebrations hong kong's hang seng index closing off eight percent. and for traders the first day of the work week was dubbed the special new bold was a woman with a big posse that will be used to host ceremonies the companies that are listed in hong kong's hang seng index there's also an area that museum telling the history of the sto

guy: that is not mario draghi's role in the process. i'm interested to hear if the governor has had a conversation with mario draghi or anyone at the ecb to explain what is happening. the ecb's credibility is on the line to a certain extent. it is important also because other countries are potentially looking to join the eurozone and this may or may not affect their ability to do so. seewill be interesting to if the ecb wants that in twice shy baltic a different view in countries gaining seats on the ecb governing council. surrounding what is happening, the credibility of the latvian central-bank, the latvian legal system, and the credibility of the euro -area to a certain extent. tom: what is the view of the bank from the politicians in latvia? the independence of the central bank should be absolute in theory. it is operating in the eurozone. it should be an independent central bank. of whatpart and parcel is going on. there is no difference in theory to any other bank within the eurozone. you have to see it within that context. tom: w

how important is this to mario draghi? peter: it's very important because with the ecb is saying is that they have a foundation of growth in the euro areas that is strong enough to allow them to slowly move away from the extreme levels of monetary easing. that's a credible statement. you look at these pmi's, particularly in the service sector, they are extremely strong. and they are going to be resilient to financial conditions in the form of stronger currency. the sector that is going to be less resilient to a stronger currency is the manufacturing sector and in particular, the manufacturing sector in the economies which are further behind the curve. really, i'm thinking about italy. if there is one economy in the euro area manufacturing sector that would be susceptible to slow down in the event of a stronger euro being maintained, it's that one. that's where i would show some caution and that's the economy that frank like, i'm following the most closely at the moment. guy: stick around. petr cech will joining us. i want

part, they have got mario draghi with peripheral yields. germany down 12 months. the periphery. what is the outlook for the periphery in this process? there are a few political murder -- hurdles? >> european bonds and collective thatng, it is a concept has been a study, clearly going through around in europe. the first instance they have is that more europe leads toward a banking in as well. means there is talk that debt in , aope could shake shift backdrop of the support mechanism, like the european monetary fund. mandate for a the new coalition, we may get more europe, which can only be great news. mark: thank you. columnist for bloomberg gadfly. funny: another last effort to avoid a critical deadline, trying to get a deal on immigration. the latest in a live report. this is bloomberg. ♪ mark: live from london. i am mark barton. bonnie: congress faces another self deadline one funding runs out it tonight. congressional actions. and, the funding extension is tied to legislation to it the so-called dreamers stay into the country. in march, the specter increasingly hangs over t

mario draghi is presenting the annual report to the european parliament. decision in, a rate brazil and earnings out of tesla. thursday, the bank of england rate decision, with a potential u.s. government shutdown for the close of the week. tracy: macro and micro. the way we like it. let's talk about saudi arabian stocks. the best monthly performance in years. a key resistance level was broken, that could signal further gains. -- felipe, what was driving that performance? >> saudi has catch up to do. january was a good month. the index was going up more than 5%. had the indexwe trading at such levels was in july of last year. what we do know is that investors see some of the concerns that were mentioned. including the crackdown on corruption, how far this could go. this is seen as behind us. drivers are getting investors to look forward when it comes to stocks. the potential addition when it comes to emerging markets. sees this happening the first half of this year. combination of not as much bad news with potential good news. this is on a year to date bas

it also won't make mario draghi the head of the e.c.b. very happy at all his goal is to keep the inflation rate at a level of two percent for the eurozone next week there's going to be a meeting off the e.c.b. here taking place in frankfurt just a few blocks from where we are and we can be very sure that not too many changes after monetary policy of the e.c.b. will be announced there has been this rumor and many have asked for that for a long time that we might see by the end of two thousand and eighteen accomplis stop off the bond purchasing program this was already had reduced in the last last month from sixty billion euros a month to only thirty billion euros a month but most likely regarding interest rates we're not going to hear anything new here at all ok i believe the markets aren't to happy today either and that's because the u.s. fed is expected to increase rates several times this year. yes exactly investors were closely monitoring the words of mr powell the new head off the fed even though he has been working for a long time th

mario draghi was addressing parliament. economic expansion is partly due to the renewed vigor of small businesses, which are a key engine of creation in our economy. while our confidence that inflation will converge towards our aim of below but close to 2% has strengthened, we cannot yet declare victory on this front. yousef: let's get back to hans goetti, the founder and ceo of hg research. as you listen to neel kashkari and mario draghi, what are your key takeaways? does it have any bearing on how likely you think the central banks will start winding down policy? >> first of all, the fed is using the wrong inflation, they are using the pc inflation, which has not been at 2% for the last seven years. i would think that they will have to recalibrate, if they really want to look at inflation. it has been too easy for too long. the fed now finds itself way behind the curve, and that is where these forecasts of four rate hikes come from. the fed will probably stay on course. the answer here is, it depends on what the fed will

guest: i think mario draghi has managed this quite effectively. i think the transition from what i would call emergency policy settings to transitioning to more normal policy settings, i think he is managing that transition very well. i think you're right. this next year is the end of his term, and i think by the time he is replaced with the next ecb president, we will look back on this era as being an era of effective munication by the ecb president. nejra: does the ecb or the fed come with one of them has more potential to catch markets offguard this year? richard: given that both central banks rely on forward guidance, i think that the ecb is actually changing its policy from one of super accommodative stance to less accommodative is perhaps where he might get a little bit more surprised. the fed narrative is well-established. we know what they've been up to for the past two years. it will continue in that regard. there is possibility for some surprise from the ecb, although i think it will probably try to avoid that. do you think the euro will

mario draghi was addressing the european parliament and stronger. mario: well be can be more confident about the path of inflation, patience and persistence with regard to monetary policy are still warranted. for underlying inflation pressures to build up and inflation to converge durably towards our objective. and persistence. not declaring victory as yet in terms of the fight against inflation. mario draghi addressing the european parliament. about he is talking inflation. in many ways, he is intimating what greta is saying. now might be the wrong time -- what kuroda is saying. now might be the wrong time to step back. it is far, far from done. eurozone, the recovery is probably two years younger than the u.s. in terms of the cycle. they are still having spare capacity. any signs of major wage inflation, price inflation, excess credit growth, which means the ecb will go much slower by virtue of the fact that it is still a long way away from where the fed is and the u.s. economy is. anna: looking for signs is interesting though, isn't it? i have a

it was the case when i was president and the case with mario draghi and also my predecessor. as in the united states of america, we have open market committee deciding, it is the same in europe. there is a visibility of the president. which is normal. he is not -- vonnie: he is a message bringer. at the trilateral commission, there is a question of whether north america, western europe, and japan are as close as they used to be. what is the primary concern of the group right now? confidence,ay that cooperation, between all countries that are systemic at the global level. which is the franchise of the g20 itself, is the franchise of the trilateral commission. we are doing what we can to exchange views of all persuasions, all sensitivities. it is very important. we are not associated with any association but we trust that the world, which is interconnected, which is so important in terms of links -- interlinking between all countries and all markets. between all economies. we need to have confidence and cooperation. and what goes in that direction is, for us, very important. vo

president mario draghi hinted that the strong euro wouldn't affect the block's economic prospects but he said global factors were a wild card that could have a negative effect the european commissioner for economic affairs pierre moscovici said the eurozone would maintain its momentum at least into twenty nineteen but he hinted at worrying issues including a lack of investment persistently high youth unemployment and stubborn public debt . of all sounds very good about will it remain that way let's bring in mark was very he's an economy economists rather at the university of sun-god in switzerland marcus druggy mentioned global factors as a wild card but does it does he mean with that. always wild card he probably means the wia guys i mean north korea can be on the phone and mr trump you never know what's going to be happening in the next tweet so global factors could be nice or it could be political issues in europe take the german grand coalition discussions which hopelessly hopefully will finish today we have elections in italy to come up so there are a lot of political factors whi

up first, from a mario draghi speech to the d.o.a. rate decision, we take a look ahead to some of the biggest events next. this is bloomberg. ♪ yousef: this is "bloomberg markets: middle east," line on bloomberg tv and radio. let's get you up to speed with the regional equity market action. you looking at the dubai exchange come away down -- exchange, the lowest level since november 2016. saudi stocks down 6/10 of 1%. qatar has rallied quite a bit into 2018. all numbers of the exchange down , overall loss of 2.7%. israel as well joining the big movers, the biggest move in quite some time for the israeli exchange. let's get you up to speed with the latest business flash headlines, starting with the story of saudi arabia. the state oil company aramco has kept pricing to asia the same for the second state month. the first time since 2007 at prices have stayed the same for back-to-back months, aramco had previously arranged prices for five straight months. the ceo of dubai holding has left the firm less than a year after taking the helm

draghi and theresa may will be speaking. up, matt, wrap things kathy, and mike, and david rally from bloomberg asset-management. what are we looking for from chairman powell next week? >> i have read every speech he has given and every trans cript. his eyeis going to have on financial stability, more so than other chair people. with that in mind, even though risk today, if situation eases, that will change, and that will encourage the fed to perhaps accelerate the pace of rate hikes. that is a big that in our view it will keep flattening pressure on the yield curve. jonathan: when of our clients has written in saying he is sticking and coal. the message from us is clear, we expect yields to and lower than they are today and substantially lower as the market is forward looking at credit that we get to the end of the year we think investors will not have a bike outlook as they today. people are bullish except treasuries, it will be different by the end of the year. >> we think today. rates could peak and ar around three but 2%

it sounds like mario draghi wants to step back on his inflation. he has talked about inflation and the need to get there. what makes sense to take some money off of the table -- would it make sense to take some money off of the table? >> the market has been anticipating that perhaps we did not get an interest rate hike from the ecb this year. with the bank of japan, the market was convinced that the bank of japan would be stepping back. i would say that that type of speculation as a little bit ahead of itself. both mario draghi and kuroda have been pushing back against this speculation. i think we are likely to get a continuation of that dovish talk. anna: we have seen some strong data out of germany. does that involve the hawks at the ecb? >> i think it keeps the hawks at they -- bay. the hawks in germany are not going to go away. the pay deal that they have got, it is quite substantial. i think it is very interesting, because one of the reasons that we have low inflation is because wages, wage growth is so low. without wage growth you are not goi

and mario draghi the new and departing directors of the european central bank sent a secret letter to bonus going to be exposed by the korean adela's newspaper. they remind him of the basic measures expected of it in a. structural reform favoring competition and italian balance including the full liberalization of local public services through large scale privatization. that secret letter. caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. and what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the. was under attack one of. the berlusconi government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. courts intervened and said no you cannot remain should use. legal provisions that i've been repealed as a result of a referral. this caused european commissioner olli rehn to write

mario draghi uses verbal intervention as well. where are you thinking in terms of the currency wars in 2018? viraj: we saw it with mario draghi given a verbal warning to the u.s. administration last week. i think it's only of currency start trading away from fundamentals. let's not get carried away and try and drive the dollar away from fundamentals. we know the dollar is structurally weak that let's not private aggressively lower. that's one of the reasons mario --ghi did not actively that's what has been driving the euro. the ideas that central banks are not necessarily trying to get involved, but there is certainly a bit of noise around here, cautious that things are moving maybe to quickly. anna: there are a few opportunities to change the environment 2018. the trump administration likes to talk about bilateral trade instead of multilateral trade deals. i was interested to see that in the export data from china we saw the strengthen their currency was damaging some of the chinese export engine. that's been such a part of the g

and mario draghi the new one departing directors of the european central bank sent a secret letter to bonus going to be exposed by the korean adela's newspaper. they remind him of the basic measures expected of it in a. structural reform favoring competition and italian bonds including the full. blizz ation of local public service is through large scale privatization. that secret letter caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. and what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the euro area was under attack one of. the bell is going to government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. the course official courts intervened and said no you can't rein should years. legal provisions been repealed as a result of a referral. this caused the european commis

i understand keep fi -- to keep fit i understand mario draghi. has 45s, are you trying to get fit for a future will? jens: i am always trying to remain fit, so it has nothing to do with any future personal decisions. weidmannat was jens and we want to look at reaction in the marketplace. the euro-dollar and how it reacted, and the euro went down. alix: it started lower after germany inflation came out, the lowest since november 2016. that was also a surprise for estimates. some week as had been expected but this is weaker. plus, you end up hearing from jens weidmann that the future is bright, but the combo is looking at the euro lows in the session. david: we went to bring back board mervyn king -- mervyn king, thank you for listening to jens weidmann. let's talk about what he talked about and there are two related things, one, possible rate hike, have not beeny specific enough in their guidance and it has been vague. to you agree? -- do you agree? mervyn: this guy is having to be big because none of us know what the position in the middle of 201

is mario draghi really the savior of europe? it is almost thanks to the ecb that we don't really see spreads widening. it is 100% thanks to the ecb. >> he's done a great job stopping the existential crisis. say the french electorate have done a great job stopping the danger that populism drags a major economy out of the euro. i don't think the italian election is a major threat to italy be in part of the euro. francine: let's say there's some kind of coalition that doesn't deliver reform. >> how many italian coalitions have not delivered reform? francine: what do you mean? [laughter] >> we can live with domestic problems in italy. francine: it is an italian problem, but i went through every single proposal and none of it really makes sense when you are trying to balance the books. >> it may come back to be an issue. when we find a market clearing level for bones, everything else, then we are going to start focusing on actually balancing the books. divergence back to between european bond markets when whatever it takes ceases. fr

and mario draghi the new and departing directors of the european central bank sent a secret letter to bonus going to be exposed by the korean adela newspaper. they remind him of the basic measures expected of it in a. structural reform favoring competition and italian bonds including the full liberalization of local public services through large scale privatization. that secret letter. caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. on what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the your area was under attack one of. the bell is going to government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to private eyes water. a proposal that italians had rejected in the referendum. courts intervened and said no you cannot reign should years. legal provisions that i've been repealed as a result of a referral. this calls to european commissioner olli

and mario draghi the new and departing directors of the european central bank sent a secret letter to bonus going to exposed by the korean of the newspaper. they remind him of the basic measures expected of it in a. structural reform favoring competition and italian bonds including the full liberalization of local public services through large scale privatization. that secret letter. caused quite a backlash because the e.c.b. has no institutional jurisdiction to enforce policy making in an e.u. member state. it was judgment the judgment of the e.c.b. what was necessary in this absolutely dramatic circumstances where forty percent of the g.d.p. of the euro area was under attack when i think. the bell is going to government implemented many of the measures proposed in that letter while at the same time secretly trying to introduce provisions to privatized water . proposal that italians had rejected in the referendum. the course official court intervened and said no you cannot remain should use. legal provisions to be repealed as a result of a referral. this calls to european commissione

president mario draghi into that the strong euro wouldn't affect the block's economic prospects but he said global factors were a wild card that could have a negative effect the european commissioner for economic affairs pierre moscovici said the eurozone would maintain its momentum at least into twenty nineteen but he hinted at worrying issues including a lack of investment persistently high youth unemployment and stubborn public debt . business is back to thank you so much. well we turn now to a very big meeting happening today because turkish president rector typed out a wan is at the vatican for a meeting with pope francis protests have been banned in central rome for twenty four hours as feelings run high over turkey's offensive against kurdish militia groups in northern syria their talks are expected to focus on the controversial u.s. recognition of jerusalem as the capital of israel both men oppose the move. they couldn't be more different. the all three tarion turkish president and pope francis known for his humor and humility but over the years both have attempted to build bri

well you know mario draghi has got its hands full with the you're with all of the eurozone because it is growing gangbusters right now and yet he's got a quantitative easing program that's up and running that is ridiculous it's ridiculously too loose and we know that the germans are going to be stepping in and naming his replacement by the time labor day rolls around here in the united states i would look for potential more and more tightening than we anticipate right now in europe and don't count out the bank of japan either they have chosen to to peg their quantitative easing program to a ten year yield target and that has forced them to decrease the amount of monthly purchases they make in their own quantitative easing program and we've got quantitative tightening going on back here at home and jay powell has been a huge advocate to continue shrinking the fed's balance sheet so when you look at the globe when you look at the world holistically and add up all of the tightening that's supposed to occur in two thousand and eighteen i'm not so sure the markets are ready for it danielle