whole of europe. he wanted to be part of the great european project in his head, he said it was a rip-off and the money was being wasted. when it came to economics and politics, economics one. does that remind you of anyone? the most powerful woman in the world, the first woman chancellor of germany, is a daughter of a lutheran pastor steeped in the virtues of thrift, hard work, and behaving responsibly. one of the reasons why angela merkel remains personally powerful, her image is like the house frau next door. sometimes this puts her at odds with her desire to be a good european. now, even if modern germany is divided between catholics, lutherans or other religions, it is a lutheran god they don't believe then. the influence of the way they think about the economy is everywhere. "luther's followers are the backbone of the economic miracle. hard-working, small-business owners, teachers, professionals. they are sharing a very german east background with angela merkel. just like chancellor merkel, they

and that's true for all of the europe mean countries, europe, some of them have not recognized it yet but in a world economy we're all small. and therefore the european union s the last six years that i have spent on the economic council of europe made it very clear that european corporation is the most efficient way that we have to deal with our problems. let us remember that asia was very bad in '97, '98 with its crisis and came out with, and everybody was then saying that the imf was doing the wrong thing and killing growth. but then asia grow for 5, 6% per year of the years to come. and if europe are now doing the right thing when it comes to improving its growth prospects and there are very courageous decisions taken in italy, spain and greece, it is very clear when the ocd assessed structural reforms that it is the european countries that are now coming forward with deep structural reforms. so i would guess that the growth prospect for europe for the next ten years are better than the last ten years. the fiscal side is already going in the right direction. if this is like it was

and in europe. do you see demand picking up maybe by the end of the year, that you will bring back some of that production and what would any of that mean for additional jobs at ail he would with a? >> well, the closure of the facilities was really not that much driven by the demand picture, but more driven by our strategic strategy, and that is to be more competitive also in what we call our upstream business where we make the metal, where we refine the boxite and turn it into alumina. and there we are coming down on the cost curve which make us more competitive and more sound to also withstand volatility, whatever the market would bring there. we have been shutting down 530 town tons of smelting capacity and last week we announced we're doing the same thing on the refining side. 330 tons. this is one of the reactions how we're going to get more competitive. there's also something on the positive side. we're increasing our volumes on those facilities where we are highly cost competitive. that's the

what's the impact of gas prices going to be in europe? because the iranians if i'm not mistaken have said they're going to not sell them any oil so, where do you see that going? >> gas prices in europe when they go up it's not good, but it has much less damaging effect than it has in the united states for a loft odifferent reasons about how they tax gasoline in europe. it's not good. but europe decided on their own to cut off imports of oil from iran they're committed to put pressure on that government. >> with regards to the false credit swaps there. a lot of banks in the country have default credit swaps with european countries and specifically greece. greece is in default. creditors are being asked to take a haircut on 53% of their bond debt. what's the impact of that going to be to our banks, our financial institutions here in this country? >> no material impact. u.s. financial banks have dramatically ecreased their exposure to europe. they did buy protection against the remaining exposure they have. that's haver very small. any inves

the big question is now europe for what europe for hoover is it europe for the banker of europe for trade europe for. business oh he's it a europe of cities or a europe of social rights and the rest of the continents watching too knowing that whoever its next partner is a honeymoon phase is out of the question just are still here archie brussels. the ambassador result plan however needs eighty billion dollars more and the bank is relying on the fast growing breaks countries to make up the shortfall russia has pledged ten billion dollars but along with the rest of the emerging economies once a greater say in how it spans meeting today in washington finance ministers from a group of twenty of us realise nations will focus on their funding brazil russia china india and south africa are expected to come up with eighty billion for a bigger sway over the international monetary fund the i.m.f. president christine lagarde was optimistic that a compromise will be reached by the commons and other planning that's vizor patrick young doesn't have much faith above will help save the eurozone. this is

europe for one for whom it's a cure for the banker of. europe for trade with europe for. business is it europe of cities of europe of social rights and the rest of the continents watching to knowing that whoever its next partner is a honeymoon phase is out of the question to answer celia r t brussels. and with the e.u. future shrouded in uncertainty the i.m.f. chief has now set a goal to protect the world from europe christine legarde wants to erect a four hundred billion dollar financial wall all around the block the plan however is short only about eighty billion dollars now with hopes of the fast growing countries known as the brics group will be able to plug the hole brazil russia china india and south africa are ready to lend a helping hand but only for a bigger say over the international bank meeting today in washington ministers from the group of twenty industrialized nations will focus on that funding. it was a bit deeper with christoph waltz the old political analyst and german government consultant joining us now live here. it's good to see you today one questio

europe for. europe for the bankers. europe trade europe for. business oh he isn't a europe of citizens of europe of social rights and the rest of the continents watching too knowing that whoever its next partner is a honeymoon phase is out of the question. cilia r t brussels. with the future shrouded in uncertainty the i.m.f. chief has set a goal to protect the world from europe christine legarde wants to erect a four hundred billion dollar financial wall around the block a planner is eighty billion dollars short with hopes that the fast growing countries known as the brics group will clog the whole result russia china in the and south africa ready to lend a helping hand but only for a bigger say over the international bank meeting today in washington and the says when the group of twenty industrialized nations will focus on that funding political analyst christophe hostiles says the i.m.f. won't be able to help europe without the brics which shows global power is shifting . not really to pay money so there is a very bad situation or a blow up

the preserve is no europe for one of the europe for whom it's europe for the banker of. your approach. your. business is in europe of cities of europe of social rights and the rest of the continents watching too knowing that whoever its next partner is a honeymoon phase is out of the question does or cilia r t brussels the i.m.f. plan to wreck their massive financial buffer around the euro zone has a bill welcome by everybody or was many nations reluctant to commit their cash and carving on the idea investment advisor patrick young doesn't have much faith a move will help save the euro zone and this is absolutely a counter to listen for the euro zone there is no way no matter harlow are just a sea of gods are no matter how high be the bazooka it is that the i.m.f. is currently assembling and nobody can afford to pay for italian government debt it is simply impossible we are pushing nations on the mediterranean fringe of europe into if we expect that they're going to stay in the euro zone it's a tragic development for government the option is quite clear and they need to

as a whole the council of europe has a program called building a europe for children can you can it also you know more about the good that's a very good very good slogan but what does it mean it's not just a slogan and i appreciate that you emphasize the word will because obviously that refers to the participation of children. because any strategy rich we want to design. to for it to protect children's rights must involve the children themselves they must have a say and that's why the with children is so important. the council of europe has developed such a strategy. as from two thousand and six on words because but because there's so much to do we we have to revise our priorities after years and actually just adopted for the coming three years a new strategy an action plan in which once again we emphasize the need to do everything we can to prevent and commit violence against children is the particular emphasis on particular vulnerable children. we want to promote child friendly services like child friendly justice child friendly health care and we want to promote it once again the

, the ten-year in europe, the boom. now let's took at what's going on in our 10-year. we brought right back into that sub 2%. we have seen right back over to 2%. but we're still on the low side. every time i see us down to 2%. it seems very illogical to many traders but obviously not to investors or getting the banks that continue to stack their balance sheets with treasure ray paper. if you look at what's going on with the euro currency. everybody saying yesterday, the euro's going to,lance. nonetheless, is the market grapples with, the party line in europe. and that is, we have ltros as far as the eye can see. don't worry about the quote unquote insolvency or the spanish banks, 20k eastern, i think are important, we're going to have the road maybe, and we're going to have the march monthly deficit and it's going to be a whopper folks, because of the 200 billion. >> we're here and yet as you were on set yesterday which was great. i wrote a piece on -- we have another politician who is safing the market. >> he has hart

so the latest victim of cold blooded austerity in europe isn't working people in athens young people in london or labor unions in madrid know the latest victim is the dutch government the coalition government in power in the netherlands was split apart over the weekend as lawmakers failed to find consensus over an austerity budget just as an anti austerity fury sweeps across the european continent it's the same theory that dealt french president nicolas sarkozy in early defeat the socialist candidate francoise hollande in the first round of presidential elections in france over the weekend and also the same theory that turned out tens of thousands of protesters into the streets of prague over the weekend calling for an end to austerity in the czech republic and on the heels of a new report out of the u.k. showing that conservative government austerity policies are a complete failure other populations languishing under austerity like in spain italy and greece are growing more and more discontent two things are happening here one austerity is being proven to not work it's a complete fa

the biggest opposition parties in europe's fifth largest economy, the netherlands, have come out against budget cuts just days after it lost the support of its main ally and collapsed. >> a key part of keeping the euro stable, the netherlands must show it can meet deficit limits. if not, a key risks creating new turmoil in and into markets. elections are expected to be held in the autumn. >> the freedom party backed the dutch minority government for a year-and-a-half. yet, builders and other opposition parties now reject the deep spending cuts that the premier wanted to present in brussels next week to show the country is on track to meet budget limits. the dutch had been one of germany's chief partners in the push to cut budget deficits in the eurozone. now, dutch papers are writing that chancellor merkel is losing an ally. lee told parliament that the netherlands was also losing an opportunity. >> a deadlock is not good for the netherlands. our economy wil improve only if we stop taking on new debt. he still needs opposition support for spending cuts, but he's not impressed. with fresh

europe for trade with europe for. business. or europe of senses of europe of sorts for rights and the rest of the continents watching too knowing that whoever its next partner is a honeymoon phase is out of the question the answer is still here r t brussels the un as planned to reckon massive financial buffer around the euro zone hasn't been welcomed by everybody with nanny nations reluctant to commit their cash and commenting on the idea investment advisor patrick young doesn't have much faith and move will help save the euro zone this is absolutely a cataclysm for the euro zone there is no way no matter how hard large to see it going to are no matter how high big zouk it is that the i.m.f. is currently assembling and nobody can afford to pay for italian government debt it is simply impossible we are pushing nations on the mediterranean fringe of europe into anarchy if we expect that they're going to stay in the euro zone it's a tragic development for a government the option is quite clear and they need to say we cannot pay ou

investors have tried to shrug off what's happening in europe, and just looking at u.s. corporate possibility and earnings, but it's really hard to do that when the news flow and data are universally weak out of europe. at some point there's a blow back. the fed and investors are worried about the blowback of the european crisis on to the u.s. and u.s. is sovereign as well, so it bears watching. >> susie: so what kind of investment strategy are you recommending for your clients? stick with u.s. stoktss. diversify in international. what's your allocation on bonds versus equities? what are you telling investors? >> two areas of focus. one is emerging markets. secular growth in emerging markets, not developing markets. and we want to invest in equities there, and particularly in on a secular basis into emerging marjts and secondly, since the world still is filled with uncertainty, it's about yield, breath, and carry, and that takes you into fixed income. not treasuries necessarily, but corporate bonds and other instrument that is actually have a yield to it, and on the equ

the average guy, you're at the ball game, you talk about europe, they're like, europe, what are you kidding me? i live in philadelphia. how could a day where europe failed to go down really impact our stocks? how could the euro rallying really matter this much? isn't it ridiculous? no. no, it's not. hard as it may be to believe, this is the modus operandi of hedge fund operators worldwide who manage hundreds of billions of dollars. the change in europe ignited panic among the big boys who have been coasting with these weak european stock trends all exacerbated by the fact that many of the companies due to report this week need a weaker dollar to get a positive outlook. and suddenly they might have one? that's how underperformers like proctor, 3m and j&j -- i mean, j&j, how many bad things can happen? the stock goes up. what does that tell you? these are quintessential weak-dollar stocks and we have a weaker dollar. with no bank run rumors out of europe, we were able to mount a solid bank stock rally led by citigroup with a good quarter. banks couldn't muster more of a move simply because we

because russia is part of europe but i did we conduct a joint assessment with our u.s. counterparts which prove that the threat is a realistic one that we recognize that it's necessary to set up a missile defense system we said let's ability to gather their effect that we have agreed to produce such a system implies that we recognize that the threat is there. the idea of russia and the west producing a joint missile defense system chris came up at a meeting of the nato russia council in lisbon in two thousand and ten in a joint statement issued after the talks with the leaders of the states break it now is that i quote to you because up our security of all states in the euro plenty community is indivisible and that is a curator of nato and russia is into wind. kind of quote you with that there is this fine principle of security coming into place differently by russia and nato but that upon that the guy for being so good yes this is a fine principle indeed but interpretations are different but it's true that the lisbon summit was a new start for our cooperation you know

altogether from europe to change europe i like europe france is not able to do alone everything i want to cooperate i want this europe but they want i don't want a europe where there is twenty percent. who are not be nearly like in soviet union before exactly the same mind they know for people. they never been elected. they are often corrected. as they are under the influence of for financial interest is a decidedly thing it's not possible anymore and now you're arguing against the evils of the free market so to speak but the world has moved forward in terms of globalization but you think it's a bit too late at this point that it's moved progress forward a little too much to take that step backwards the world is globally is look there is good. but you know coolly. well is you are jap and argentina brazil. are open and the world but the defense and self. russia has its own policy and the never accept the russian people will never accept that its interests its own interest can be decided by somebody outside the country well do not think that france benefited at all from the free market i

for my generation, europe is freedom. >> europe and freedom. for both of them, the concepts and hand-in-hand. >> it has been a long journey from eastern europe to europe. i am also deeply moved by president barack so's recollections of his youth in a different time -- president barraso's recollections. "tough times, europe needs to pull together. >> berlin's third annual youth summit on integration has come to an end with a lot of optimism in the air. 100 young people from across germany met over the past two days to discuss how to better help the children of immigrants feel they belong here. high on the agenda, making schools and workplaces more sensitive to the needs of students from different backgrounds. >> 100 students were asked to come up with ideas to help immigrants better integrate into german society, and their suggestions should be as concrete as possible. >> i am calling for an honest job of occasions so that migrants are not discriminated against based on their names. >> my name is felix. i am calling for enter-cultural awareness

there is a debt crisis in europe that is threatening america. we have the best performing of the developed world economies, but it's not doing good enough. one of the major threats to that would be the crisis in europe. i support what the administration and federal reserve have done to deal with that, and that includes support for the imf. >> the chair now recognizes the chairman of the subcommittee on international monetary policy and trade for three minutes. the gentleman from california, mr. miller. >> thank you, mr. chairman. secretary, it's good to have you here today. it's been a while since we've seen you. senator bernard has been very informative and helpful to us. there's just a concern today. i know you recall when we went through our crisis that europe was very cautious in staying over there and that was an american problem. we're very cautious in that way too. the imf has been very good in giving technical advice an direction on what they should do to resolve their exposure to the european crisis, but we're concerned that it's not tr

but we had much broader cooperation even beyond europe. you're seeing japan, south korea, china, countries around the world really moving with us to tighten up. now, we're going to keep looking at ways we can bring more pressure to bear and keep looking for what's the most effective balance of pressure we can bring to bear. but i think we're making substantial progress. and our hope is of course that will alter iran's calculations about their interests in pursuing a nuclear capabilities. >> thank you. europe is the biggest trading partner that we have in the united states, and the

i think what populists in europe are worried about most now is europe. the main -- the european union. the main area of populist resurgence in europe lately has been on the french left. what the french left has done is really quite impressive. you have [unintelligible] running as a great underdog in the socialist party and he ran on a platform of what he calls the globalization -- de- globalization and had a shockingly high percentage of the vote. this is really something. what are these people upset about? what he says he is upset about is the fiscal union that the europeans want to impose to get out of the debt crisis. he describes resistance to this as well. as a patriotic duty. this is sometimes -- he is sometimes confused about the european union. he wants to nationalize. he likes the idea of getting rid of the nation state and once the nation's state around so they can do the one thing that the nation state is there for which is nationalizing industry. it is a similar contradiction to the one the german left party has. that have similar rhetoric. t

the ceo of the company is very cautious about the situation in europe. >> the problem is that in europe, people are very cautious, very reluctant respect and the model that we have in europe simply doesn't work to allow people to make risky investments as they perceive it or do more than is absolutely fess. >> he also explained that the margin was not at the level that he would have liked. the profitability has been impacted by the shift to new generation of telecom gear where the profitability, margin lower as a result, the company reported an operating loss of 221 million euros. the company says it will have a better visibility at the end of the quarter. >> stefane, thanks for that. swiss maker of computers announced better than expected earnings and says it's cutting costs by over 10%. we'll have more from carolyn in the second half, and also still to come, timothy geithner says europe is doing a better job of managing its crisis. we'll have more market reaction to the fed, as well. remember, the dollar index currently down at three week lows. and we'll dig in to the earnings state s

the only thing i would point out in terms of what is going on in europe, europe has been down 8% in the last couple of weeks. we're only down 4%. i would say that our economy is clearly doing better and alcoa is going to help our markets tomorrow, i can assure you. a lot of people were citing jittery. they are starting off on a high note. i won't call it decoupling. >> brian sullivan, how could you be surprised by a sell off when we're talking about double digit percentage moves? >> that's a great point, maria. we talked about it yesterday here on the show. listen, i'm not going to minimize the decline but you look at where we've come. we just got out of the best quarter for the stock market in 14 years. yeah, we're down a couple of percent and all declines have to start somewhere but we have had a massive run. it's up 30% off of the lows last year. we were below 10,000 on the dow a couple of years ago. so, yes, not minimizing the decline. to your point, we have come a long way and we have increased some of these dow names well up into the double digits over just a couple of year's time

and europe, but only if you recognize that as long as europe gives the bears an edge, they will keep pressing your best stocks down. and you'll have to take some pain before those stocks return the pleasure. can i go to nathan in minnesota, please? nathan? >> caller: hi. yaba daba doo. >> i'm liking that. what's on your mind? >> caller: xerox. finally, what's going on with it? >> well, you know, they did better than expected, so people got very excited about it. i think the fact that it was up a penny on a really horrible day tells me i've got to do more work and xerox is maybe finally at an inflection point where it could start going higher. i've not liked the stock, i've been right. let's go to stafford in oregon. stafford? >> caller: hey, jim, how you doing today? >> i'm doing real well, how about you? >> caller: good. my question is regarding china mobile. i know they were near a 52-week high and had a sell-off today. i wanted to get your opinion? >> we do not recommend chinese stocks on this show other than baidu. why? it's very simple. we've seen so much money lost investing in

but he shares the same ideology that the far right do share here in europe and cost the united states which is inherent hatred police and muslims which i believe is misplaced this is a viral mind he took inspiration from the far right fascist ideology and he has killed many people in an indiscriminate way and he can sit in court and try to justify his actions as if he's on his one man crusade to force muslims out of europe like i said before muslims are color of the d.n.a. of european society we are passionate europeans we want to live in this continent in peace full coexistence but we must be allowed to carry out our faith according to our own scriptures and i live in peaceful coexistence and what this demonstrates to you very clearly is that there is a rise of the far right across europe and that's deeply worrying for many people and sadly some mainstream politicians like presence of causey indifference are contributing to an environment of hatred towards muslims. because in this country rachel anything about them in paris or we just heard from hammad. well i think there are some va

europe the european union or to be the vehicle that makes sense of europe now you know they have done in the past made tremendous sense of europe you know the fifty's the reproach went between france and germany the single market even the euro in the times of boom was fantastic every one of those were my words those were our political projects ok they were had different agendas well there's a debate to that but what what my point is that the european union undoubtedly in agree with the other two panelists has to change fundamentally a lot of people have been arguing this ever since the issue of you know turkey joining the e.u. remember that a couple of years ago that the e.u. will not be able to actually take on board you know such a country as diverse as turkey but it is in the economic and you might even say you know do security interest of the e.u. to take this on board so the e.u. has to change you know the euro is a good idea but not certainly for an entire block of seventeen or eventually whatever you can twenty five or twenty seven countries so it was a good policy that was way

and china turns its growing night towards the arctic as the country's prime minister tours europe seeking support for beijing's membership in the arctic council but china's bid to enter the fight for the past energy resources has alarmed that member nation. my colleague bill daughters here in half an hour's time before now crosstalk focuses on mass murderer. can. follow in welcome to cross talk on futile about insane or murderous rightly fanatic this is what a norwegian court must determine in the wake of last year's massacre of seventy seven people and his bravery clearly holds extremist ideas and is a narcissist but when one strips away his extremism much of what he has to say can be found in conservative media all through the western world when it comes to multiculturalism what is really on trial here. can start. to cross talk the case in norway i'm joined by rachel martin in paris she is a political communications strategist and syndicated columnist in oxford we go to roger griffin he is a professor of political affairs that oxford brookes university and in manchester we have mohammed

southern europe just looks all the same. and they're applying the same kind of remedy which is going to keeld a very specific result. and that is no growth or a contraction which is exactly what we are seeing in most of the countries. >> well, we've got what is going on in europe and then you've got north america. these two giant economic zones, do they talk back and forth with each other? can failure in one inevitably spread to the other or success in one create a virtuous cycle and lead to better times in the other? >> and i think this is a very good question. the problem is that we are experiencing such slow growth, is this growth sustainable between 2 and 3%, yes, of course. but the real question in the united states is, is this growth enough for what we have experienced to recover in our jobs market? is enough for us to recover its loss that has happened in the last four years. and the answer is no, it's not enough. so our very, very slow growth, although helpful to europe, by no means going to drag them out of the prob

the big question is now europe for what europe for whom is it europe for the banker of europe for trade europe for. business or his it a europe of cities or a europe of social rights and the rest of the continent's watching to knowing that whoever its next partner is a hollywood face is out of the question. yes are still here r t brussels and over that you use future shrouded in uncertainty the i.m.f. chief has now set a goal to protect the world from europe christine legarde wants to erect a four hundred billion dollar financial war all around the block the plan however is short eighteen billion dollars with hopes of the fast growing countries known as the brics group will be able to plug the hole brazil russia china india and south africa all ready to lend a helping hand but only for a bigger say over the international bank i mean that meeting today in washington ministers from the group of twenty into after allies nations will focus on that funding but investment advisor patrick young doesn't have much faith a move will help to save the eurozone in any way. this is absolutely a catac

europe for trade with europe for. business or has it a europe of cities a europe of social rights and the rest of the continents watching to knowing that whoever its next partner is a honeymoon phase is out of the question just are still here r t brussels well the i.m.f. eurozone plan however still needs eighty billion dollars more the hope is that the fast growing countries known as the brics group will manage to make up that shortfall russia has already pledged ten billion dollars but along with the rest of the emerging economies wants a greater say in how it's spent meeting today in washington ministers from the group of twenty industrialized nations will focus on that funding personal russia china india and south africa are expected to come up with the eighteen billion but ask for a bigger sway over the international bank the i.m.f. president christine lagarde was optimistic that a compromise could be reached but commenting on the plan investment advisor patrick young doesn't have much faith the move will in any w

and europe. but even in advance of that, we have been working very hard to explain to our european counterparts that once a company makes a commitment or an industry makes a commitment to one of these enforcible codes of conduct, in the united states that commitment has the force of law. it is an agreement that's binding on the companies. it is an agreement that is enenfor enenforceable under the federal trade commission. we would seek to have agreements enforceable by state attorneys general. we certainly think that one of the critical privacy protection questions, particularly in the commercial context, is to find a way to reduce the barriers that we have today between the united states and europe in the way that services that use personal information are governed. i want to just close with a final word from the president that's in the introduction to the consumer privacy bill of rights that we released. he said, one thing should be clear, even though we live in a world in which we share person