both in italy and spain. and i think, you know, what the election outcome has done, it's been the most disappointing in a way that we could have seen for the market. it's clouded the structural reform, and the growth paths to the economy and the fiscal consolidation that we're seeing. >> it's all -- it's going to embark on a multi month, multi year fall out. kind of a really confident to the dollar rally across the board. now it could extend cable lower and it could be a reflect job of that, as well. >> the world economic system is looking more stable, start to go turn tharnd. some of the big investors are starting to get out of gold. i know a lot of the hedge funds are thinking about where do you start shorting this. >> and the federal reserve will announce results of the latest round of bank stress tests today at 4:30 p.m. eastern. it's a two-step process. the fed will first reveal how much capital the banks would have to hold under a severe economical downturn. the central bank will tell them privately whe

spain -- liberal and conservative. the latter includes a special on of the catholic church founded in madrid in the 1920's -- special arm of the catholic church. it has substantial influence at the many schools that its members run. the statements of the pope are most welcome here. >> these reforms are unfortunate, and the church has to make clear its position. thank god we can express our opinions openly and have the opportunity to question if these laws are appropriate. >> just 12% of spaniards go to mass, but most still want to attend weddings, first communions, and other ceremonies -- a dilemma for the church. >> spaniards are catholics but not practicing. all we did was inherit the face -- faith. >> still associated is the franco regime, which the church supported. it is a legacy which continues to cause much soul-searching among catholics. >> this is about a separation of the heart and mind. atop the catholic church is -- at heart of the catholic church as part of a long family tradition, but our hearts tell us s

on the left, you can see spain. banco santander down almost 4% some some cases. unicredit down almost 5%. moving to the french banks, credit agricole and bnp are showing pressure down 3% to 4%. even in germany, down 2.4% there. a lot of concern will come down to just to what extent investors can assume even senior debt is protected going forward. we'll get to that discussion in just a second. in the meantime, look at the bond space. no rotating out of the periphery and into the safer haven trades this morning. yields falling below 1.9%. and the ten-year bund in germany is below 1.4% as the yield is spain is back above 5%. that spread is about 37 basis points at the minute, that's considerably wider than what we've seen over the last couple of weeks. forex, the euro/dollar is expected to be under pressure. it's holding up reasonably well, up 0.25%. after testing some of the lows below the 1.29 level has held up reasonably well. yen is strengthening, calling into question the extent to which the currency remains a bit of a safe haven trade. carolyn ross joins us no

spain -- liberal and conservative. the latter includes a special on of the catholic church founded in madrid in the 1920's -- special arm of the catholic church. it has substantial influence at the many schools that its members run. the statements of the pope are most welcome here. >> these reforms are unfortunate, and the church has to make clear its position. thank god we can express our opinions openly and have the opportunity to question if these laws are appropriate. >> just 12% of spaniards go to mass, but most still want to attend weddings, first communions, and other ceremonies -- a dilemma for the church. >> spaniards are catholics but not practicing. all we did was inherit the face -- faith. >> still associated is the franco regime, which the church supported. it is a legacy which continues to cause much soul-searching among catholics. >> this is about a separation of the heart and mind. atop the catholic church is -- at heart of the catholic church as part of a long family tradition, but our hearts tell us s

mass protests against spain's unemployment. the opposition leader of it is well will announce that he will stand for president next month. divided balls in syria. -- divisions in syria. >> hello. karzai has accused u.s. forces of working with the taliban and behind his back. he says colluding with them means of violence will worsen. the commander in afghanistan says this claim is categorically false. the comments came on the second day of what seems a challenging visit for the defense secretary check hegel. suicide bomb attacks killed at least 19 people and cobble creek in kabul. they did meet in private. the press conference was canceled hour after the afghan president made these comments. >> america is saying that the taliban is not their enemy. they're fighting them. they are abusing our people. there in daily talks with the americans. they claim they're showing strength to america. did they are not. >> chuck hagel has had to do with a number of risks that have blown up between the two countries. at the moment, at the u.s. h

here we have spain coming down. meanwhile, the shanghai composite has suffered its -- do you want to look at -- what do you want to look at? european markets. let's take a look at those. >> and now the shanghai. this is the story, anyway. we might as well just look at it, down 3.6% on the latest move to curb property markets there in china. it's amazing how quickly we started talking about tightening as opposed to last year when concern about hard landing was all the rage. the shanghai composite has suffered its biggest loss in months. limit down today on the back of fresh tightening measures on beijing. for more, joining us from singapore is andrew leon. andrew, there was some suggestion that this was spurred, as well, by a media story in the u.s. last night. "60 minutes" did a story on the chinese property market. the question is whether today is an overreaction to some of these headlines. >> well, i don't think it's an overreaction, really, because we were seeing china with this national people's congress ordered

a report from the southeast. >> this is a sea of plastic in spain. thousands of acres of greenhouses, producing vegetables for the export trade. look harder, and you can also see it is home to some of the pores and vegetable pickers. many are not tracked by the spanish recession. one man lost his job as a builder in barcelona and came here in search of farm work. his home is a shipping container shared with friends. wasting our days here, and we are wasting our lives here. it is what is. >> he crossed illegally from morocco to spain 12 years ago, clinging to the underside of a lorry. he says he has been working for the past 10 days picking tomatoes, but he claims the former is refusing to pay him. many workers say that with jobs so scarce, the farmers are refusing to give them written contracts. there might be up to 35,000 undocumented workers in this province alone. meanwhile, every day, the produce is sold to supermarket chains and others at auction. borrowers say that though the sales in spain are down, demand elsewhere in europe remains strong. t

spain, they came out 2.9% higher despite the horse meat scandals in britain. they did surprise to the up side with their sales ratio. we see the national bank of greece better than 7%. there is still plenty of concern in markets at least for names that are trading today with regard to how this cypriot deal will be handled. here is what the bond space is doing today. we're seeing differentiation where the yield is selling off. spain, rallying a bit, coming in back below 5%. and the ten-year german bund sitting at about 1.40. still indicates a flight to safety bid there. for ex rates, today down about 0.1% to 1.2941. traders looking for a sign of weakness in that. the dollar/yen is weakening -- i'm sorry, the yen is weakening against the dollar, 95.40. up about 0.2%. you just heard valentin talk about how they still like japanese equities the. for more on what's happening in the nikkei and other asian stocks overnight, let's get straight out to li sixuan joining us from singapore. >> thank you, kelly. asian markets rebounded from monday's steep decline with the

you can see it in places like spain and italy. they go one step forward in austerity, two step backwards. and that's also an issue with the social compact there. we've seen in greece and seeing in cyprus that every time there's austerity people don't like it and people protest. so that's a difficult situation. >> rose: how much exposure to europe is there on the part of big u.s. banks? >> it's still, it's still not nothing. i mean, it's scaled back consider me from where it was three, four years ago. but all these banks do a lot of business in europe. i mean just on that side. and so -- >> rose: they've got the risk under control do you think. >> look, if italy goes under, if spain goes under, no. i think then we're going to have some problems. i don't want to suggest we don't have problems. if spain were to have a run run on the bank, you name your big u.s. bank. >> rose: it's less likely today. >> less likely today. but we're not out of the woods yet and that's why the story is important. >> rose: because you're not out of the w

the yields in spain and italy are very low. they didn't move much. >> seven or eight basis points today. >> joe, while charles rated the contagion effect as low, he said later in response to my question, whenever these banks reopen -- and he himself said this, why shouldn't you have another run on the bank? why believe anything the government said? they threatened to confiscate 6% or 7%? why not if you do have a run on the banks, there are three major banks in cyprus, will the ecb come in with the ultimate liquidity bailout safety net? that becomes the key question. >> the answer is i don't know. i think this obviously is a political issue. the banks are still closed. i think what we are failing to realize is that the ecb has their omt, their open market transaction program in place from last summer as the backstop. their version of qe. if we could isolate cyprus for a moment, i don't think we have to worry about these bank runs across europe. that's what you would be concerned about. that's not the issue. coming back to the u.

the same is true for spain today. if you look at the ibex 35 rallying about 11% ahead of that auction, it was one of the lone green spots on the map yesterday. and the ftse 100 which has underperformed on earnings weak ps issic maing up ground this morning above 6 500, we should add. here is the bond space. you can see here relatively steady 37 italy is rallying today, 4.65%, the yield coming down. spain meanwhile is moving out a little bit. it's interesting to see out here the opposite of what we have seen. italy, again, we're seeing some demand. investors are filing out of german bund this morning. for more on what that impact we're seeing across the forex space, let's take a look here. the aussie dollar is was to one in particular adding 0.5% after stronger than expected data that suggested perhaps this loosening cycle is over. in fact, also according to the city analysts, maybe the u.s. dollar strength story isn't the only story in town that people still like some of the commodity or other stronger based stories,

you can see it in places like spain and ity. they go one step forward in austerity, two step backwards. and that's also an issue with the social compact there. we've seen in greece and seeing in cyprus that every time there's austerity people don't like it and people protest. so that's a difficult situation. >> rose: how much exposure to europe is there on the part of big u.s. banks? >> it's still, it's still not nothing. i mean, it's scaled back consider me from where it was three, four years ago. but all these banks do alot buness in rope i mean just on that side. and so -- >> rose: they've got the risk under control do you think. >> look, if italy goes under, if spain goes under, no. i think then we're going to have some problems. i don't want to suggest we don't have problems. if spain were to have a run run on the bank, you name your big u.s. bank. >> rose: it's less likely today. >> less likely today. but we're not out of the woods yet and that's why the story is important. >> rose: because you're not out of the woods. and

spain takes them of of france at the top of the group. problems -- now they are in position to defend their world cup trophy. >> bolivia's president is planning to try to commercialize the coca leaf industry. they can be used to make anything from an injury drinks. their more famous for been the primary ingredient in cocaine. theyrlier this month, gathered in the capital to celebrate a plant sacred to them. coca leaf is the main ingredient for cocaine and is considered a some predict controlled substance in both -- in most countries. , but not bolivia. it was not until earlier this year that the president succeeded in getting you an approval for the plant's legal cultivation for the traditional use. but now he wants to go even further, exporting products made with the coca leaf. energy drinks. >> our strategy is to get recognition, spreading information about the benefits, not dangerous to our health, and has nothing to do with the drug. >> coca leaf has medicinal value because it contains vitamins, minerals, and other nutrients. tonic to

. >> a nice cup of tea may not seem the obvious answer and to spain's unemployment crisis. but in her own small way, christina could be contributing to her country's economic salvation. she is a newly trained expertsional tea shantesha fluker upper own tasting business -- and she ahs tastingup her own business. >> sometimes you don't know how to do it or you are afraid. >> she has taken a growing risk that a growing number of spaniards are doing, setting up their own company. this place is full of consultants, designers, artists. like this thats employs three people or less, the government hopes they can revive spain's economy. the big companies have shed jobs. more and more individuals are relying on their own ingenuity to earn a living. a new batch of policies have been announced to help start-ups such as allowing people to invest their unemployment benefits in one lump sum and lowering the social security burden to those under 30. but self-sufficiency is on display. promises from the government don't mean much. >> i really feel they say that because it sounds nice. despi

and workers at spain's iberia airlines launched days of strikes to vent their anger at the british parent company pushing through massive cuts. great to have you with us this afternoon it's three pm here in the russian capital i'm lucy catherine of and of course you're watching our t.v. well into our top story five people including two police officers have reportedly been killed in the egyptian city of port side the army had intervened to break up the clashes there leaving about six hundred people injured violence erupted over a decision to move those detained over last year's football rioting to prisons located outside the city this came during the u.s. secretary of state's visit for talks with president mohamed morsi which up outraged the opposition parties bill true has the latest from from cairo looks like the clashes have been continuing overnight in this restive totals city of port sites with the death toll rising and the injuries are topping i just pull hundreds what happened was thirty nine defendants in this port saïd football months ago that occurred last. february when moved b

you throw increasing rates in spain and italy. you throw cyprus at us, threats of contagion and yet it hardly affects the market. look at today. today's performance is impressive. the caution near term is spreads are finally beginning to widen in europe, spain and italy. i was expecting that to happen. so i think we just tread water here, maybe trade down a couple percent. >> why can't we get through the record level on the s&p? what's the one thing holding us back? >> i think it's those events and the fear that there's something bigger coming out of europe. europe is slowing. i really don't pay much attention to those numbers. they mean nothing. i don't get an extra star in my portfolio because we're going through a psychological level. it's that type of natural progression in the market where you have to consolidate, maybe even pull back a little bit. before you can go higher. >> i'll say this in terms of what's holding the market back. it's not just europe. it's international weakness as a whole. we saw caterpillar talk about a

yes, it's selling off, but 4.6 mers here compared to the 4.7% reading on spain. perhaps there will after all be the yields on italian and spanish debt. we have seen italian debt rally considerably since the election despite being conclusive. the real question is whether that continues this week. forex, we have seen a lot of key levels here. the dollar/yen, over 896. the yen has continued to weaken further. not a major move, but taking out yet another level as it inches ever closer to that 1 00 level that a lot of strategists on the program have been looking for. the australian dollar is just about flat. sterling/dollar is giving up about 0.1%. italian gdp did shrink, but not much more than expected and that's enough to keep things relatively steady at this point. a major cabinet reshuffle is on the agenda for china. we'll cross line to beijing with eunice to get the latest from the npc. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per sec

an 11-6 win against spain. pablo sandoval has won two world series championships with the san francisco giants. he also scored for venezuela, but the result is of little consequence. that is the sport. thank you for watching. >> thank you. that is it for me. stay with us here on al jazeera. a full look at news is straight ahead. thank you for watching al jazeera.

spain saw a record number of evictions. up to 200 per day. at times of crisis, the state cannot help so many people, but gloria will. she is a courageous spanish woman who has turned her house into a shelter for homeless people. >> this upper-middle-class apartment in central madrid has an unusual set of residents -- 10 men and one woman. for 13 years, gloria iglesias has been taking in homeless people in her private home. these men at rock-bottom. each one of them has been hit hard by spain's financial crisis. now, they are eating lunch together and have a roof over their heads again. this is the story of an incredible private initiative. >> we have all overcome one crucial thing -- isolation. we are gd to be able to share, and i think gloria enjoys seeing that we are happy. >> gloria has invested all her money in the project. she shows us the apartment. the men sleep here. in one room, a dialysis patient receives treatment. she takes in everyone, including drug addicts and alcoholics. gloria is 61 and a former flight attendant. she had a fa

now but what about the rest of the eurozone what will happen when a larger struggling country like spain needs another bailout and even more importantly what will happen in cyprus is banks open up next week a separate government as whole is waiting to end its temporary bank holiday while new bailout terms of negotiated are just putting off the inevitable we see a bank run in cyprus spread to the rest of europe and maybe even the u.s. it's us richard wolffe economist and visiting professor at the graduate program for international affairs at the new school university and author of numerous books his most recent democracy at work a cure for capitalism richard welcome back thank you tom this. seemingly arbitrary maybe you can explain the rationale for it. maximum budget deficit european countries can have a three percent flies in the face of automatic stabilizing mechanisms that all of these countries have where if they go into recession then automatically they have things like on employment insurance and all the people who were paying taxes into the government are now taking tax money out

italy and spain are up, will their banks handle it in some similar fashion? we don't know. this is the worst thing you could have done. >> what is the worst case scenario for europe? how much of that is just a knee-jerk reaction and the possibility that cyprus may leave the eurozone. >> right. that probably wouldn't be bad for the euro if they left but what's worse about this is this creates additional ease for investors out there look at bank stocks and you have seen it get hit. for the euro, it's always been weak. we've already seen it come off and seen it come off in the face of other currencies like your own kurccurrency. specifically, when they had much better than expected unemployment data and the british pound rallied as well. again, it really depends on the individual currency. europe is just a mess. and they -- the more they have politics involved the worse it gets. >> t got it, andy. you just answered our question about whether or not mri aussie dollar will go far or not so far when i go back to australia next week. thanks. >>> breaking news right now. amman jafe

whether or not it's going to come to us here is what this article points out is that new zealand and spain have already introduced legislation in no uncertain terms saying that your cash will be taken and back in december two thousand and twelve the f.d.i.c and the bank of england published a joint paper outlining their new approach for how to resolve any future collapse of one of the too big to fail banks called resolving globally active systemically important financial institutions so the paper is a blueprint for how they will deal with the collapse of a g. syfy globally systemically important financial institution and what they say and section thirty four is under such a scenario deposit guarantee schemes may be required to contribute to the recapitalization. of the firm so of course may used to mean it could possibly be in today's world may means it will be legally covering their butts to because they're going to not honor the minimum deposit guarantee scheme look we've seen with hank paulson he told his friends before he worked out a deal through tarp like tim geithner and goldman sac

you are crazy to leave money in spain or italy right now. san dray: peter, you don't like bailouts, but what about this one? >> i don't, but as long as you make the mistake of bailing out a bank, the way they did this is better where all depsitors are made whole. the moral hazard around deposit insurance and perception that even the uninsured are protected. i think depositors have to be aware of the risks. remember, the banks were paying high interest rates on their deposits, much higher than pretts that prevailed in germany, and they knowingly took the risk to get reward. there needs to be some losses if the banks fail. sandra: do you think, peter, there's a run on the banks after all this? >> well, i don't think you're going to see a run, but i think some people walk to the ban to grab theironey. if you have money on deposits, certainly, in any of the cries where there's problems, why leave the money in the bank? especially in today's environment where interest rates, in general, are so low, why take a chance? you know, it's not just on th

spain, as well, the mib in italy adding almost 2%. >> and we've seen yields lower today for spain and italy. spanish yields just 5.0, 4.7%. ten-year italian yields, 4.76%, as you can see. gilt yields are higher. they were higher, anyway, because stocks went higher, as well, post that good services pmi number out of the uk. we had disappointing manufacturing and construction pmi made us thought that possibly we would have a negative quarter. and then we got a better than expected services number. maybe just takes the pressure of the bank to do anything this thursday in terms of extending its qe program. and it may just mean, as well, that the uk avoids another quarter of contraction. that is where we stand on that. quick check of the currency markets, aussie/dollar, 1.0236. dollar/yen, 93.12. not far away from the high we hit on february 5th. >> euro/dollar, 1.3054. a little firmer on euro/dollar. that is where we are right now in europe. so let's recap. you've just joined us. what happens in asia today, sixuan? >> thank you, ross. asian markets staged a strong rebound after yesterday'

spain, italy. they don't even come close. there's 600 billion euros of senior debt in italy. >> three practical questions. first, there's a bank holiday today. there's a bank holiday technically tomorrow. >> probably. >> if you want to get your money out of cyprus, you can't. >> impossible. >> two, when there was a crisis in -- when we thought there was a true crisis going on in italy and spain, corporationes and some institutional investors put their money in, but retail did not for the most part. so what happens in cypress and what happens across the board? even in the u.s. whether we have -- it's called runs. >> why do you touch anybody under the insurance level, though? >> i agree. that's where the writing comes in. >> if you have your money in europe, it's not so clear to me that you run with your money so quickly. if you're a russian oliguard you might run with your money. but you're not running tomorrow. you might be running over the next couple of weeks, months, it's a different thing. >> i agree. >> so it's not like

the ibex 35 giving up 0.5% in spain. the xetra dax one of the hardest hit down 0.7%. this after the german data showed surprise manufacturing activity in its flash pmi estimate. services disappointed, too. the ftse 100 also taking it on the chin this morning. here is a quick look at the bond space. an important one to watch. we're still seeing prices rally for spain and italy, meaning the debt has fallen to 4.95% and 4.6 respectively. we're seeing the bid into periphery and out of the safer haven trades this morning. can it continue? this will be the question. here is a look at forex. the euro has been a reasonable guide lately with regard to risk. today it's giving up 0.2%. this is one cowatch particularly if it drops below that 1.29 level. the dollar/yen showing some strengthening down about 0.3%. and sterling, again, catching a bid on the back of both the budget statement yesterday and the slightly more hawkish minutes than were expected from the bank of england. straight ahead on the program, any more going on after we take a quick break. we'll come back and talk

growth and you know in spain you've got use unemployment approaching sixty percent so now you're going to have a total revolt against the euro. this is not a good thing you know it basically is a signal now that the euro is not safe and anything can happen anything is not taken off the board in germany is the paymaster here and i think that what it indicates is preposterous ahead of the german election because this is an itsy bitsy you know it's a bit steep payout which was ten billion and if you think about the first bailout it's like greece bailout one was one hundred ten billion euros and then bell out two and then bailout three bailout for bailout five i mean bell infinity has become the new normal in terms of what the government is doing very much in germany that mean they benefit by these countries going into collapse because it keeps the euro relatively cheap and this is a big export business at the same time they're introducing measures they give them a play on the entire banking system across the euro zone in competition with the city of london and they're trying to boot out b

with other countries such as italy and spain and portugal and ireland because basically those countries not basically ireland what i meant was that ireland already bailed out of going to the going to come back to ireland the coming back right but here's my point there's reach everywhere right now and these countries are in a depression and i don't understand why the media isn't picking up and calling it what it is it's not an economic recession italy has had i think nine quarters of negative g.d.p. g.d.p. growth and you know in spain you've got youth unemployment approaching sixty percent so now you're going to have a total revolt against the euro this is not a good thing you know it basically is a signal now that the euro is not safe and anything can happen anything is not taken off the board i mean germany is the paymaster here and i think that what it indicates is preposterous ahead of the german election because this is an itsy bitsy you know it's a bit steep payout which was ten billion and if you think about the first bailouts like greece bailout one was one hundred ten billion eu

whether or not it's going to come to us here is what this article points out is that new zealand and spain have already introduced legislation in no uncertain terms saying that your cash will be taken. and back in december two thousand and twelve the f.d.i.c and the bank of england published a joint paper outlining their new approach for how to resolve any future collapse of one of the too big to fail banks called resolving globally active systemically important financial institutions so the paper is a blueprint for how they will deal with the collapse of a g. syfy globally systemically important financial institution and what they say and section thirty four is under such a scenario deposit guarantee schemes may be required to contribute to the recapitalization of the firm so of course may used to mean it could possibly in today's world may means it will be legally covering their butts to because they're going to not honor the minimum deposit guarantee scheme look we've seen with hank paulson he told his friends before he worked out a deal to tarp like tim geithner and goldman sachs they

that's slightly worse than spain's market generally. moving on to italy now, the president says he will today announce his next plan to try to form a government, following last month's inconclusive elections. the president has held two days of talk wes party leaders to try and reach a compromise. pierre bersani was the last to meet with the president and is he's insisting he'll be expected to form the next government since his party has the lower house, but ohm if his party has full control. >> translator: this is our intention, being available to help and find a solution, but not the whatever solution. a government that is not able to make a real change knot the solution. >> antonio garcia pascual is with us from barclay's. is it going to be a better sanny coalition here? >> well, i think right now, bertano is going to play an important role. in our view, it will buy time to form a grand coalition. i don't think -- we don't think that they want a minority government led by bersani. >> why not? >> because it will travel throughout, will

david: but might -- >> a big difference between that and spain and greece. david: but just a bushel more call might that not lead to a bank runs? because it nobodies' money is safe then people might think, and g's, my money is better off in gold or maybe even u.s. treasurys. >> but i think the difference here was a commitment that he made to the banking system in greece, to the banking system in spain and portugal's cahuenga that we have our discount window open to you to borrow anything the you need so that there will not be a run on the bank. if there is, you can have these to pay it out. he explicitly never said that. there was never qualified to do that. therefore i think it will be a special category compared to alysian the rest of europe. liz: you have been awfully bullish saying that the s&p 500k hit 1700. don't we need strong gdp? the output of all goods and services, to generate better returns for stocks in the stock market? currently kind of just bubbling along here with our gdp? >> we are. there are two major ingredients to a stock market. one is

whether or not it's going to come to us here is what this article points out is that new zealand and spain have already introduced legislation in no uncertain terms saying that your cash will be taken. and back in december two thousand and twelve the f.d.i.c and the bank of england published a joint paper outlining their new approach for how to resolve any future collapse of one of the too big to fail banks called resolving globally active systemically important financial institutions so the paper is a blueprint for how they will deal with the collapse of a g. syfy globally systemically important financial institution and what they say and section thirty four is under such a scenario deposit guarantee schemes may be required to contribute to the recapitalization of the firm so of course may used to mean it could possibly use in today's world may means it will be legally covering their butts because they're going to not honor the minimum deposit guarantee scheme look we've seen with hank paulson he told his friends before he worked out a deal through tarp like tim geithner and goldman sachs

you're in spain and not drinking red wine, sangria? is that okay? >> well, let me tell you about the study a little more. the study had three groups. the first group they took people -- these are people at high risk of heart disease. high blood pressure, high cholesterol, many on statin drugs. they had family history. they smoked. they said what can we do to improve things? one group they gave nuts to, walnuts, hazel nuts, almonds. the third group they gave a low fat diet. that was the control group, by the way. there's a problem which is they didn't get exactly the low fat diet they were supposed to get and they didn't get the fish that the first and second group got. it's not a perfect study, but i actually like it also the same as david does. i think it adds more evidence to the fact that fish, that omega threes, that nuts, that olive oil and even more important, jamie, cutting down on red meat, cutting down on the dairy like we said in the first segment, eating more fish and poultry, all of that improves life span and decreases your risk. in thi

growth and you know in spain you've got use unemployment approaching sixty percent so now you're going to have a total revolt against the euro. this is not a good thing you know it basically is a signal now that the euro is not safe and anything can happen anything is not taken off the board in germany is the paymaster here and i think that what it indicates is preposterous ahead of the german election because this is an itsy bitsy you know it's the bits the pay out which was ten billion and if you think about the first bailout it's like greece bailout one was one hundred ten billion euros and then bell out two and then bailout three bailout for bailout five i mean bell infinity has become the new normal in terms of what the government is doing i mean that's in germany that i mean they benefit by these countries going into collapse because it keeps the euro relatively cheap and this is a big export business at the same time they're introducing measures they give them a play on the entire banking system across the euro zone in competition with the city of london and they're trying to bo

now but what about the rest of the eurozone what will happen when a larger struggling country like spain needs another bailout and even more importantly what will happen when cyprus is banks open up next week a separate government as whole is waiting to end its temporary bank holiday while new bailout terms of negotiated are just putting off the inevitable we see a bank run in cyprus spread to the rest of europe and maybe even the u.s. it's us richard wolffe economist and visiting professor at the graduate program for international affairs at the new school university and author of numerous books his most recent democracy at work a cure for capitalism richard welcome back thank you tom this. seemingly arbitrary maybe you could. explain the rationale for it maximum budget deficit european countries can have a three percent flies in the face of automatic stabilizing mechanisms that all of these countries have where if they go into recession then automatically they have things like on employment insurance and all the people who were paying taxes into the government are now taking tax money

italy and spain, 4.65% and 4.88% respectively. spain's longer term debt auction failed to reach what markets thought it might raise. here is a look at what's been happening in forex. a lot going on. mervyn king making governor last night suggesting that he thought the pound was roughly at fair value. in other words, he's not trying to talk it lower. you can see a sharp reaction in response to the 1.51 level. jack lew is treasury secretary although that's potentially seen as lip service. the dollar/yen, given up 0.1%. the euro is a little firmer on the day. given that we've seen the yen improving a little bit, what impact does that have for us? hi, sixuan. >> thank you, kelly. asian markets lost a bit of momentum in the afternoon session to end the week on a mixed note. samsung electronics, the technology giant finally took the wraps off a much anticipated galaxy s4, but might have failed to impress markets especially after weeks of speculation over its new features. investors took profit on that stock tumbling 2.6% today. the nikk

you are crazy to leave money in spain or italy right now. san dray: peter, you don't like bailouts, but what about this one? >> i don't, but as long as you make the mistake of bailing out a bank, the way they did this is better where all depositors are made whole. the moral hazard around deposit insurance and perception that even the uninsured are protected. i think depositors have to be aware of the risks. remember, the banks were paying high interest rates on their deposits, much higher than pretties that prevailed in germany, and they knowingly took the risk to get reward. there needs to be some losses if the banks fail. sandra: do you think, peter, there's a run on the banks after all this? >> well, i don't think you're going to see a run, but i think some people walk to the bank to grab their money. if you have money on deposits, certainly, in any of the cries where there's problems, why leave the money in the bank? especially in today's environment where interest rates, in general, are so low, why take a chance? you know, it's not just

that's what happened in spain i would argue where their unemployment rate is still at about 25%. what do you see in spain that gives you hope when they're raising taxes, which kills business in order to balance the books? >> well, that's a big headwind, we agree. but they are, their equities, the companies are, the big companies that account for the main part of the stock market are not doing that badly. he despite the taxes. the economies in europe, particularly we're talking now about spain and italy, have been beaten down by the austerity programs. we, but we see them coming back slowly but surely in the second half. and fourt fourth and, the -- 2014 and equity markets tend to look ahead six months or so for those developments. david: let's hope it happens. bill, great to see you. thank you very much have. appreciate you coming in. >> okay. lauren: budget proposals everywhere but no deal in sight as the clock continues to tick. congress has one week left to come to a compromise and avert a government shutdown. we're live on capitol hill with the very latest. [ engine revving ]

what about spain? what about italy? nicole: when you read a headline and you hear the government will just say, you know what, you have been a great worker and a great saver, we are just going to take some of that. stuart: i want to bring the rest of the company into this. i never thought i would sit here and talk about a european government which is reaching directly into private bank accounts and taking money. >> it is taboo. it breaks the cardinal rule. you want public trust in the banking system. the direct opposite of what they intended. it is called a flight to treasuries right now. that is the other irony. cyprus is less than half of the gdp of the euro zone. italy tried this move and 92. stuart: charles. charles: it really is the most frightening thing. a lot of people already worried about government, in general. they get into financial difficulty and cannot find their way out of it. this is frightening across the planet. it could happen anywhere. you cannot say that it cannot happen here. the idea that people

growth and you know in spain you've got use unemployment approaching sixty percent so now you're going to have a total revolt against the euro. this is not a good thing you know it basically is a signal now that the euro is not safe and anything can happen anything is not taken off the board i mean germany is the paymaster here and i think that what it indicates is preposterous ahead of the german election because this is an itsy bitsy you know it's the bits the pay out which was ten billion and if you think about the first bailout it's like greece bailout one was one hundred ten billion euros and then bell out two and then bailout three bailout for bailout five i mean belo infinity has become the new normal in terms of what the government is doing its in germany that mean they benefit by these countries going into collapse because it keeps the euro relatively cheap and this is a big export business at the same time they're introducing measures they give them a play on the entire banking system across the eurozone in competition with the city of london and they're trying to boot out br

the ten-year in spain, 4.72%. if you're just joining us on the program, we'll get to your headlines in a moment. >>> first, the biggest insurer in europe has forecasted a profit of 3 billion euros this year. stell, the insurance giant it could she additional losses in its unit. up about 1.2% right now. >>> and coastco reported second quarter results this morning. profits better than expected 39%. same-store sales were up 5%. boosts of higher gas prices and stronger foreign currencies. costco, which has about 650 locations in the u.s. plans to open 14 new warehouses by the end of september. addsing about 0.2 outperformancing the program. >>> if you're joining her -- >>> and a state judge puts the lid on new york city's sugary dling ban. >>> and here is a look at today's other top stories. hewlett packard is looking at a takeover of autonomy. reggie gupta said the board laid a solid foundation for hp's turn around. hp has disclosed the uk serious fraud offer as joining the justice department. hp took a massive write

especially in a country like spain, for example. which is under very stringent conditions being imposed by the european union. there is widespread disillusionment with the whole e.u. bailout situation. that brussels can reach into private bank accounts in countries receiving e.u. bailout funds and brussels can take that money out in effect. this looks like socialism written at large on the european stage here and think it send all the wrong signals. and just earlier today the dutch finance minister who is leading the eurozone group of countries declared categorically that cyprus is example pour the rest of europe to follow. this is the shape of things to come. this is disturbing for depositers across the region. they had money in quotes that are uninsured accounts. are there a lot of banks within the eurozone that have large number of depositers with uninsured accounts? >> well, basically, there is a european union wide or eurozone wide guaranty of one00,000 euros -- 100,000 euros per bank account. in a country like spain, for examp

it might even take a while to spread to spain and italy. that may only happen if we start it see worsening trends in credit walt. david: erin davis from "morningstar". good to have you on. thanks so much for explaining it. appreciate it. >> thank you. david: thank you very much. sandy, over to you. >> david, people might have a little less to spend this spring but that doesn't mean they won't be buying new clothes. you never sacrifice fashion. up next we've got a top analyst ready to share her fashion stock picks for your portfolio. >>> samsung's newest phone putting a lot of pressure on apple. find out how the tech giant is responding to the competition. log on to facebook.co facebook.com/afterthebell, click on the "like" button. tell us what you think is the best smartphone on the market right now. ♪ . today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on sit

spain and italy are seeing the yields fall a bit. 4.711% for italy. 5.05% for spain. >> gilt yields have dropped about 20 basis points since that data point. 1.95 was the yield. the interesting thing is, here we are since the downgrades. yields are gone only one way, lower. >> that happens when you downgrade equities. that's not surprising given the fact we've seen the u.s. react to its own down graiz grades. >>> italy is pushing ahead with its needs faster than planned. the yield offered on the ten-year was the same as wednesday's scheduled auction which was 4.81%. that's up from a sale seen at the end of january. meanwhile -- i'm sorry. >> that's all right. italy's future remains clouded in uncertainty. bersani has ruled out a grand coalition with silvio berlusconi's party. in an interview, it was stressed that the idea of a grand coalition does not exist and never will. >> the comments come as former italian prime minister silvio berlusconi faces yet another scandal. this time, he's under investigation on suspicion of bribing a senator to change sides in 2006. investigations have been

eight hundred forty eight is spreading right across europe and starting greece is now moving to italy spain and i can assure you right now france is going the same way the french economy is an appalling polling situation they're fed up with the right all along we had to election in france last year france france is completely different germany would be different this year it's not transit state it was a great. the greek banks greeks will a great deal of money to the french as france's economy is in the polling situation . people are leaving there because of the the republican rich their struggles visit friends the european union opposing in terms of. your you're looking at ironically oppose all right ok all right all right dell and jumping you really hard i've tried to impose limits on the whole deal and if you want to feel like you just go ahead. i'm interested in david's repeated analogies to eight hundred forty eight since as we all recall they were a huge failure this is where it was altered and of and so i i don't know why is taking so much pride in that but i think it's. people nichol

of things to concern yourself with and clearly one of the issues at the moment relates to italy and spain because they've both got incredibly large problems of fiscal nature and they're going to find it very difficult to manage to find their way out of the crisis and i think that they must be amongst the countries who look very on easily the marks by mr di mr jessel and the head of the euro group who said that ultimately savers are going to be in line to lose all of their savings the next round of bailouts that's a catastrophe basically we're in a situation whereby anybody who's got money in a bank must be worried about where it's sitting because it could be confiscated at any point in time by what amount to little more than bureaucratic euro things so is there a problem yes of course there is because italy and spain are only at the point in time one further away from managing to sell their government debt and if they don't do it the. going to be a catastrophe and of course as we know i mean the spanish government is well actually in competent government well that isn't even entirely wort

some other world news and prevent thousands of students gathered in the streets of spain's capital madrid on thursday this after the country's government slashed education funding in a bid to ease spain's crushing debt burden the demonstrators are outraged over a sore intuition fees at spanish universities while tens of thousands of teaching staff have been laid off meanwhile spain of faces record unemployment with fifty five percent of young people currently out of work. well for rain has been engulfed by the most intense clashes between protesters and police in leeds that's on the second anniversary of a saudi intervention which crushed the nation's pro-democracy uprising security forces fired stun grenades and tear gas at thousands of angry marches who were in thai is and hold stones and the police have been mined in political and religious turmoil in recent years with the shia majority demanding a greater voice from the sunni want to keep. coming up we had to our washington studio for breaking the set with jose the mountain that's next here on our team. are you an investigator ben emm