Tells us the u. K. Is ripe for reforms in eu leadership but there is no reason for a breakfast. The u. S. Fed gives failing marks to Deutsche Bank for their capital holdings. We bring you the latest on the second round of bank health checks. The country joins the global wave of monetary easing and lowers key Interest Rates to an alltime home low. We tell you what it means for the market. Mark get hopes of pulling the economy out of the brink. We will bring you the details on the loan program. Hello and welcome. Anna i am anna edwards. Greece is running short of cash and time. We will tell you who is bringing in the billions with the Greek Economy on the brink. Mark this video shows flashing lights. We have reports that two officers have been shot in ferguson, missouri according to a local news station. We will bring you updates on that story throughout the morning. Three days of sovereign bond buying from the European Central bank in bond deals in the eurozone continue to make fresh alltime lows in germany. Yields are negative even on 70. One councilmember does not think this distortion will last for long. Jonathan ferro in frankfurt for an exclusive interview. This is an ongoing discussion that we have. In principle, of course, the policy of Central Banks follows Monetary Policy aspects, not aspects of, lets say, profit maximization. So we have a clear priority but still, one has to be careful about the potential of future losses so that maybe also we see first as an indication of the structure where to buy and second also perhaps on the volumes and the future volumes to what extent we are prepared to get into this. Jonathan what do you mean by future volumes . Ewand we have this program [inaudible] we look at the territory of higher inflation rates and higher expectations. That should translate or so into higher current bond yields. If we succeed for a longer time we still have a large part of the markets negative yield. This is something to think about. Engaging in foreseeable losses is something that may come with risks for Central Banks. Jonathan when you consider scaling back on purchases between before 2016 . Ewald it is too early to think about that. We have had a good start and then we will see. Jonathan is that something we can roll out . Ewald we have this program and were going to do it. We should not rule out anything. Anna i am pleased to say that jonathan has returned to the studio. Good morning. What is the caution . Jonathan you sit there at your terminal screen and you look at these bond yields and do work out what youre going to buy determined by various Different Things but for them it is not about profit maximization but it is about risk as well. When you have so much eurozone sovereign debt that is negative and i am have a graphic here it is half of 1 in germany. In austria almost one third of Government Debt is negative. This is a cumulative losses after losses. There is a risk there and if it stays negative, he did mention this, the word future volumes were having a debate on whether the ecb can carry on the on september 2016. He did not want to get into that with me yesterday. There is a concern for ongoing losses. Anna we do not understand the impact of the losses. Jonathan we still do not have enough detail. It there is this thing called the gap where you get this price formation in the secondary market and they can buy. How long do you wait for when they are issued and you buy in the secondary market, we do not know how long it you have got to wait. There are a lot of unanswered questions. Mark the title of the less compelling title of the year award goes to ecb watches. Jonathan you might say that about the attendees. Mark what was the takeaway . Draghi did not talk about it. It feels like a victory lap from the European Central bank. They feel like they are heading in the right direction. The forecasts are looking good and it is conditional implementing. For me, we are not their area. We have record low bond deals and the euro is declining but we have not seen it translate into gdp numbers and cpi numbers. Best not bad seems to be the take away. Anna it would feel good for greece. It would be arod to frame this as a currency war. Jonathan it is not [inaudible] mark we are ringing you live coverage of a speech from the bank of england governor from 12 30 p. M. The second stage of the u. S. Stress test results of common. The banks did not all pass with flying colors. Notably it was the european units that let the side down. Here with more is caroline hyde. What was the difference between last weekend this week . Caroline last week it was do you have enough capital. Unemployment spiking to 10 , the Property Market something 25 , can you survive that with the required Capital Buffers . All 31 could. Now comes the qualitative part. Where are your stress test warrior stress test were your stress tests good enough . Suddenly we get some trip ups. Most of the europe banks the u. S. Banks were fine. They got a big take from the Federal Reserve. The rank of america got a rep on the knuckles. They were conditionally repute approved. You can do as you wish but you have to shore up your internal processes and resubmit i september so they have a bit of a issue there. The real failures with Deutsche Bank, both u. S. Units fail and they have restrictions on paying dividends. Significant deficiencies across aggregation processes and they have there were problems with internal controls. Sometimes there were widespread in critical deficiencies across their [inaudible] many things showing in the headlines. What are the next steps . They are limited for buybacks but that may not be significant. They were not planning that anyway. There are more roles that they have to make parts of the banks more solid. They have to inject capital. That was approved last year. They were not going to hemorrhage cash. Their qualitative failure highlights meaningful work produced so they have things to do and they are going to reinforce the government and address the quality of concerns. Deutsche bank says it was enhancing capital plan processes. There are two things that will change in their are at great plains they are at great pains to point out [inaudible] they were a new addition to the club. If you look at the common [inaudible] they did do incredibly well. They are trying to show that they are improving. They are hiring 1300 employees. They are hiring 500 across the u. S. So they are making steps. I think what is interesting is the criticism that is leveled not just of them. Jpmorgan, morgan stanley, Wells Fargo Capital plans were moved were approved but at smaller margins. Notably citi failed and it will raise its dividend and they are going to beginning back a lot of cash. Are the stress tests good enough for the long term . Anna as the u. S. Gears up for its first rate rise in years asia is heading down a different path. Korea did a rate cut after thailand did the same. Lets go to yvonne man. Why are these rate environments diverting like this . In what seems to be a global trend toward rate cuts. Reporter it is a world fighting against the rising u. S. Dollar and one analyst put it quite simply here. It is a doubleedged sword. You have these currencies pegged to the rising u. S. Currency and those currents are going up and appreciating but the economies are not performing as well. On the other side you have got this threat of a fed rate hike. Essentially, everybody else is playing defense in this part of the world. South korea to the latest to join the bandwagon. They lowered to one point 75 . That is an alltime low. The bank of korea governor talking about inflation at the slowest pace since 1999. They said there was domestic demand. They have been fighting this relationship over the weaker yen affecting their export but the governor today mentioned the Euro Weakness and how that is also hurting their exports perhaps even more so than the weaker yen. He also mentioned that if the fed were to remove the word patients out of the statement essentially, more uncertainty to affect the global markets. That makes it more now than 20 nations that are losing policy this year. The fomc meets next week. Anna i was reading some analysis that was asking when the chinese were going to meaningfully step into this particular phenomenon and with the chinese in mind the governor is holding a press conference later this morning. What can we expect from that . They will be talking about how this is going to be prioritizing its open market operation especially the ones about how it will spur liquidity. It was imperative that the pboc spurs lending. We are expected to hear from the chief in less than an hour. I will be listening in and let you know how things go at the top of the hour. Anna thank you. Yvonne man joining us there. Mark there are reports that two officers have been shot in ferguson. Th suburbe that erupted in riots last year over the shooting of an unarmed teenager. These are live pictures from the scene. This latest development came after the local police chief resigned last night. He led the Department Since 20 and reached a mutual decision with the city to leave next friday. He will receive severance a and Health Insurance for one year. The International Monetary fund has approved a 17. 5 billion loan program for ukraine to help the wartorn country stave off default. The aid is part of what the imf and ukraines government hope will be a 40 billion package including contributions from the u. S. And European Union to financing offering the lifeline to the economy that the government thinks will shrug by 12 has the conflict in the eastern part of the country hobbles its industrial capacity. Alibaba is planning to invest in a move that would value the tech startup snapchat at 15 billion. They are plowing into hundred Million Dollars according to people familiar. Snapchat is a mobile app that allows you to send each other photos and videos that then disappear. The greek Prime Minister and the secretary general of oecd will meet in paris to discuss reforms. Greek authorities began talks in brussels yesterday. Those continue today but some euro area central bankers are raising opposition to the prospect of any additional emergency cash for the countrys banks. The former bank of scotland trader has waited guilty pleaded guilty. He agreed to cooperate with prosecutors and admitted participating in a scheme to cheat customers through bought in sold bonds. Anna you can join in the conversation on twitter and let us know what you are thinking about this morning. I have in tweeting about the stress tests in the u. S. And was the bar raised high enough . You can find that on my twitter page. Mark i have yet to be in begin tweeting. Weill we see parity with the u. S. Dollar . That is next. We [inaudible] i think we are [inaudible] by the central bank. We should be more prudent. Anna that was the former french president. He would like to see a slightly higher euro but the currency is taking another tumble toward parity with the dollar. It has reached one dollar and five cents. A12 year low that comes in the same week as the ecb begins quantitative easing. Great to see you this morning. Comments coming through from the former french president. He says it would be wrong to characterize the weakness in the euro as a currency war. Do you think we are in a currency war environment . When does a currency competition become a currency war . Local central inks are using their policy to address issues with glue growth and inflation but a byproduct is the value of the currency and certainly for those who are struggling, getting a little bit of an advantage is not a bad byproduct of is your Monetary Policy. Youre seeing a lot of countries pursue that and you have quite a competition going on. Mark and this is the 22nd central bank to cut Interest Rates. The fed seems very much on its own and wanting to tighten policy. What are the implications as we approach next weeks meeting and as the dollar continues its ever upward climb . The story is a good news story. We have had a stronger pace of expansion. While oil prices are challenging we are probably closer to being at our target over the near term. The Federal Reserve has the luxury to begin thinking at least about starting to unwind what has been six years of very aggressive policy. The results have been fine. It is time to see if the economy can move on its own. Anna can he move away from those years of aggressive policy because there are people who want to see a starter that process. Can the u. S. Move when the rest of the world is still playing catchup . Carl the u. S. Is or self contained in the sense that we are reliant. 70 of our own consumers for growth whereas another parts of the world they are reliant on exports. We have created a lot of new jobs and the incomes that go with them, that creates the income for spending and profits it leads companies to think about hiring and that way the economy can work without too much performanceenhancing policy. Anna if you look at what has happened to equities in the last few days there is growing concern on wall street that profits are going to be even into by the strength of the dollar and that could diminish companies ability to export. There are going concerns about what the strength of the dollar does to the u. S. Businesses. We have been watching very closely and are sensitive to the suggestion that the only reason that we are in the territory we are is because it monetary holocene is we spend easily. If the central bank were to raise Interest Rates by 1 that is hardly an onerous level of borrowing costs for american companies. We do not feel that the stock market is too far off. Mark should the fed get cracking . Richard fisher made some interesting comments a couple of days ago. He said the process should begin before the economy reaches full unemployment to avoid triggering a recession. Are you in his camp of thinking or not . Carl there are always risks of going into pricing. Creating an asset bubble that rages out of control. Those things develop over time and sometimes arrive without much warning. It is difficult to reverse them once they are there. That is in the minds of people like richard fisher. On the other side, the fed is very aware of the applications of its policy internationally. As for the tone of this ecology of markets you have a lot of borrowers overseas that are borrowing dollars. When Interest Rates rise that could put them on under some pressure. What is the new level if there is a new level . Carl we are still finding underage is. Job creation has not all been that good. Our feeling is that the fed may not be in as much as a rush to tighten. September would be the first suggestion for the rate increase. Anna is the economy with prices falling, perhaps that provides a boost to the consumer. Are we seeing recovery in europe . There is a favorable tone that we have not seen in some time and part of that is the momentum established but i would not underestimate the psychological benefit of the announcement of quantitative easing which is a tangible symbol that if mario draghi was saying it you would do what it takes, now he is actually doing it for all the challenges and limitations of the program. That has the psychology grabbed the psychology in a favorable way. Mark Inflation Expectations will pick up and the bond market will reflect that. Is that pending a rosy picture . Carl in the near term were more likely to have more negative rates than fewer as the European Central bank tries to find 50 billion euros of hans each month that bonds that are not easy to attract. Anna thank you for joining us this morning. The chief economist at northern trust. Mark we will bring you full coverage of the speech by mark carney. That is at 12 30 p. M. Today. Mark t video showsh flashing lightse. Youre looking at a video of ferguson, missouri where there are reports that two officers have been shot. We will bring you updates on the story throughout the morning. We will continue to finance these live pictures for you. Announce these live pictures for you. The two officers have been shot in ferguson, missouri. Anna breaking news from the tons of. In terms of the numbers they reported, they are giving us a focus on 2015. That was 1. 2 billion in 2014 so theyre expecting that number to improve urine year. Theyre talking about yields falling. That is the amounts of money they get her seat per seat. Lufthansa said that profit will fall but revenue may improved but revenue may fall. Passenger load factor increasing slightly in 2015. Averaging significantly negative. They are talking about unit costs excluding fuel being slightly reduced. Fuel down by 3 . They are talking about the contributions that their program is making to profit [inaudible] they are saying that the benefits is costs and yields decline. They are using words like significantly substantially in terms of the increase in net profit. These are the words they are using around their guidance. They have been subject to a number of strikes, 10 strikes in 2014 and the fallout with pilots as they try to bring about changes to that is this. We will bring you more as we go through the morning. Mark time for your foreignexchange check today. Were looking at the south korean won. It is dropping against the dollar. This is dollar won. The countrys central bank becoming the fourth or second Central Package in another 24 hours to cut. It is the 22nd country to cut rates so far in 2015. Only two out of 17 economists surveyed forecast the move today which is a move to counter slowing inflation. It is at its lowest level since 1999 create coupled with the weak economic recovery, the won is at its weakest level against the dollar since july 10, 2013. Against its 11 major asian peers, the won is weaker against all but three. The singapore dollar, the Malaysian Ringgit and the rupiah. The filipino peso has fared better with a gain of 4. 5 . The bank of korea number 22 to cut rates this year. A