care overhaul and arizona's immigration law are at the top of the list of undecided cases. today is the court's last scheduled meeting until the fall but it is unlikely to be the final session. additional dates can be announce ed for later this week. we're going to be talking about what a decision might mean for politics and for business throughout the morning. coming up at 6:30 eastern we have a congressman from each side of the aisle. them at 7:40 eastern time we have dr. ezekiel emanuel. >> ja p morgan chase reports the now infamous $2 billion plus loss won't have its strategy changed very much. the paper reportsries can can i investments will still be allowed though trades with derivatives and private equity will be avoided. blackberry maker research in motion is said to be considering splitting its business in two. "the sunday times" reports it could separate its struggling division from its messaging network. another possibility would be to keep the company together, but sell a stake to a larger technology firm such as microsoft. last month r.i.m. hired jp morgan to look at options. yahoo!'s interim ceo wants the company to concentrate on online advertising. levinson is returning to the idea he laid out last year, moving online ads to the forefront of the strategy while bumping e-commerce to the side. a judge has ruled that apple cannot pursue an injunction against google's motorola mobility unit. it is a blow for the eye phoiph maker. the judge dismissing the litigation between apple and motorola mobility with prejudice meaning it cannot be refiled. andrew? great. and in other headlines had morning, a little bit of deal news. i was working the phones. anheuser-busch is now in talks to buy the 50% stake of corona beer maker that it does not already own. it could top $10 million and a deal could come as soon as this week. hopefully we will have an announcement midweek to talk about. also this morning samsung expecting sales of its new gallaxy s-3 to top $10 million. becky needs to buy one now that her blackberry blew up. >> no way. >> last night. i didn't realize it until last night. good thing because it's my alarm. >> this new galaxy is the can company's fastest selling smartphone and i should say if you read the reviews, the reviews are better than the iphone. >> the new blackberry doesn't have a cord. >> the new blackberry ten. >> you can get a model with the keyboard. >> a two-month machinist strike at lockheed martin looking to near the end. the two sides reaching a tentative agreement. the union is expected to vote this week. most of the striking workers are at the ft. worth plant where f-35 stealth fighter jets are made a check on the markets. already we see some red arrows. we did see downward drafts in asia and in the early trading. in europe you can see the dow futures are down by 84 points. the s&p futures down by almost 1%. a lot of concerns about what's happening in europe. pointing back to both greece and to spain and we're going to get more coverage on that in a moment. we've been watching oil prices and for the consumer this is the one area we have seen a silver lining in all of had. oil price s as are down 63 cent. still at $79.13. if you've been watching prices at the pump they've been down significantly. the is yosurvey shows they're d9 cents from the peak and they've been dropping rapidly. the ten-year note and you can see the yield is at 1.621%. the dollar this morning is re t reacting mixed this morning up against the euro. gold prices i haven't gotten a look at, up $ .80. >> did you see, there's a negative yield? people are paying money. >> it happened during the crisis in 2009. >> it's costing them money. >> unbelievable. >> buffett put up that chart that he had bought which showed he thought was completely ridiculous. >> i think it was 2009. and can greece have any worse luck? the prime minister has been hospitalized. the finance minister. it's an inauspicious start for something so critical. >> do you think they will be able to change the terms? i was surprised by the language from germany last week. >> i think they will get leniency. it's astronomical. they want to reverse nearly every single reform because they're trying to bow to the left. everything is starting out in negotiating positions. when you go to buy the house, you low ball them, right, and the other person stands firm. you will get leniency. and they will give more than they wanted to and greece will not get as much as they wanted to. >> it is the beginning of the dance, i suppose. >> i think the minute you saw the outcome of the election, that's when the negotiations started. the people said this is not going to work. >> they both have constituencies to answer to. >> exactly. time for the global markets report. kelly evans is standing by. k kelly? hello, michelle. i'm sorry to kick things off not necessarily the best note. there's a lot of red going on. we have decliners outpacing advancers by a 9-1 ratio. down 1.4% on the index this morning. it's not necessarily that we opened so poorly but sentiments have taken off. as you can see first the nikkei down three-quarters of a percent. over here, though, the xetra dax in germany down 1.6% in trading so far and the ftse 17 in the uk not much better down 0.9%. it's been more about some of the news we've gotten with regards to spain requesting a bailout for its banks not giving a dollar amount but that's not doing a lot to support bonds certainly for the sovereign. here we have an increase of 6.531%. we're off the highest levels we saw a couple of weeks ago. spreads are higher this morning. in the range of 570 basis points. france and germany among the beneficiaries of that as investors look for safer havens. people are paying negative yields. real yields are already negative. the story for the last couple of weeks has really been oil and that continues to be the case after clarity in the elections. brent and nymex are down. brent down. analysts see the premium has come out of that. the question whether it starts to go back in. the dollar down as you would expect on a day like this. the rupee down a quarter of a percent. moves didn't go far enough to please investors. the stock market has done well. we will be paying attention to commodities. a big story in the wul street journal taking a look at extreme drought situations where a year ago there were major floods here. the global market is relying on a bumper crop. u.s. corn stockpile is projected to fall to a low. it's caused not only problems with the crops but major fires in the western part of the united states, too. which i'm watching because i'm going to the western part of the united states. >> oh, i see. >> you are all looking at me like, what. i'm flying to utah. >> oh, my gosh, the fires. >> mortgage interest rates and the treasury -- >> me, too. >> i want to know if i can refi. >> the fires have been serious bad news. this is in like 20 states that they are looking at the drought. . >> is your trip in jeopardy? >> no, it's threatening a lot of places where they have homes that are right outside in colorado and other places. it's bad news. >> let's talk consumer news. half of americans don't have enough emergency savings to cover three months of expenses from bankrate.com finding the trend appears to be worsening. it's always the statistics people say, three months. some say six months. some say more. >> a lot people are living paycheck to paycheck. >> the recent recession went on for so long you might have thought, shoot, i should have had a year's worth. >> gasoline prices dropping 15 cents during the past two weeks. the lundberg survey saying the average price for a gallon of regular unleaded is $3.48. diesel dropping 13 cents during the same period to an average of $ $3.78 a gallon. jackson, mississippi, we have to take a trip there, the lowest average price $3.03. the cost of getting there might ruin it for us, though. san francisco drivers apparently pay the most on average, $3.95 for regular. >> i didn't know it did helicopter fuel. i thought it was only cars. >> very funny. very, very funny. >> my inner joe. >> you're sitting in the seat. it's worthy. >> all right, all right. >> what kind of fuel does my copter run off? >> jet fuel. that's a good question. i don't know. i bet we'll get the answer. >> some viewers who also have a couldn copter. trying to turn palm oil into biofuel committee ecompleted by. the amazon rain forest bigger than all of london. biodiesel will be used to run the machinery ships, trains and bus. it is huge. that's a company that's had so much government intervention. you wonder how much of this is politically driven to say, oh, we're going to be so green. they removed one ceo at one point because they were too focused on shareholder value. i get a little nervous about that. >> all right. coming up, the banker to the banks. why the group representing the world's central banks say risky behavior again poses a hazard to the global economy. first, though, this morning's sports buzz. the yankees beating the mets 6-5 last night in the final game of the subway series. the bronx bombers taking two out of the three games this weekend. ♪ ♪ ♪ [ male announcer ] not everything powerful has to guzzle fuel. the 2012 e-class bluetec from mercedes-benz. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. for exceptional offers this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs. a place where innovation meets determination... and businesses lead the world. the new new york works for business. find out how it can work for yours at thenewny.com. welcome back. u.s. he can with wit welcome back. u.s. he can with wit futures are pointing to a negleative open. dow lower by 87 points. nasdaq by 2.2.5. making headlines toy ota plans o supply hybrid technology to bmw. the partnership began with a deal last december on diesel engines. nissan announcing plans for an $800 million factory in northeast china. to the weather channel mao. ryan what can you tell us about debby? >> reporter: meandering around the gulf of mexico. we'll be dealing with that the next couple of days, even as late as thursday and friday. el elsewhere across the southeast, 93 degrees. warm conditions in atlanta. there's your moisture with debby. back up to new york city we'll see 75 degrees. the heat, though, will be the big story. we're talking about high temperatures in dallas. 105. well above average temperatures. not only here across the heartland but also as you head up into the rocky mountain states. denver usually cooler in the summ summer. highs today between 103 and 105 around the denver area. this is a very warm conditions here. also salt lake city 100, 108 in phoenix. if you're wanting cooler weather to the northwest. highs here very nice in the upper 60s around seattle. >> do you have any idea how long that super hot weather is expected to last? >> reporter: it looks like it could be with us the next three to four days across the midwest and back across parts of the front range of the rockies and final finally making its way to the southeast. >> thank you very much. great to see you. great. our next guest is the bank er t the world's banks. he joins us exclusively with the findings from the bank of the annual report, the head of monetary and economic department -- at the baj of international settlements and we are thrilled to have you this morning with this report out. i want to highlight one piece of the report and have you comment on it because it struck me last night as i was reading it. big banks drive up leverage without enough regard to the consequence of failure. because of their systemic weight they expect the public sector to cover their down side. so we are still living in a too big, if not too big to fail squared world, is that what you are saying, steve? >> well, i don't think it's too big to fail squared. we haven't solved the prices with the large institutions. i think we've made a lot of progress, though, with the new basel three banking regulations. the banks realize they have to have much more capital and much higher quality capital and with the banks that you are talking about, the move to the surcharges so that the big banks have to hold even more capital and be safer because of the damage that they would do to others. that's a lot of progress and i think over the next few years we'll be able to write something quite different from what you read. >> the report is suggesting they are continuing to take risks recognizing or in expectation. do you believe that's the mode right now? >> i think they've done that and they haven't changed. our biggest concern with the banks as we try to imply there that they're overleveraged and that a lot of banks in the world still have loan losses on their books, that they have not recognized appropriately and that they are not valued at market prices. evidence of this is the price to book ratio for the financial system, that the markets are -- the price the markets are valuing he's things is well below. so what that means is that investors in the marketplace look at the banks and say, you know, we don't think you're worth as much as you guys are putting into your accounting statements. so i think that's a problem and we have to try and move past that as quickly as possible. >> steve, can you break it down for us in terms of u.s. banks versus european banks versus asian banks, versus south american banks, for example, how everybody stacks up? >> well, at this point we're in a position where the emerging market country banks that weathered the crisis quite well are well capitalized, although i think there the concern is at least in some pockets that there's a lot of credit growth and they may be leveraging themselves up a little bit in ways that are not that healthy for their domestic economies. i think as i look at the transatlantic economies that what i see is quite a lot of variation across those economies where the banking systems and some of them have done quite a bit to repair themselves while other ones, i think, have been quite a bit slower. so there's a lot of variation there. but i think the other thing we try to highlight in the report it's not just the balance sheets of the banks that are the issue. it's also the fiscal authority where virtually the entire advanced economy of the industrialized world, those economies have governments that have their fiscal trajectories on unsustainable paths, something that's been made worse by the financial crisis because of the supports that are needed for the banking system. >> steve, today spain has officially asked for a bailout of its banks. they are full of sovereign debt that is not going to be made whole. referencing the point you were just making. how do you see this working or do you see it working? >> well, i mean, i think what our position on europe, i think, is pretty clear at this point. i mean, the balance sheet problems that i describe in the banking system and also in the government exists with as well in households and firms. in europe you have this confluence of all of these things going on at the same time. and there's a bunch of different sort of adverse feedback loops. the term i like the best, there are a bunch of vicious cycles in this where all of this is feeding on each other. you pointed to the banks and the sovereigns but it's much worse than that because it also involves the private nonfinancial secotor. and they need to try and break this. >> steve, it's michelle -- >> the quickest way to break this -- yes, sorry? >> spain is emblematic of all the things you've just talked about, denial for years by the government, piece meal when it comes to recapitalization. the day they did something for the third time and they said we're going to need $9 million, by noon $15 billion, by the end of business 19 billion euros. am i overstating it when i say this is about the absolute worst way to deal with the banking crisis? >> well, i think things have been done as you point out in small steps in europe. i think that we could all hope if we went back, as is the case with a lot of things that we might be able to do it differently and i'm sure the people involved feel that, too. i think that looking forward, though, the question we need to ask is how we build the right in europe. build the right framework. and what we would argue is you start with a comprehensive look at the banks. and i think the simplest way to put it is that we really have to have banks that are in the euro area be euro area banks. and what that means is the customers of those banks both on the asset and the liability side have to look at banks in one euro area, in one part geographically similarly to the way they would look at a bank in another part of the euro area. and that's not true today and that, i think, what you are describing is symptomatic of that. and they need to move quickly to make it so that this is quite different and so that you don't see the deposit flows across national borders that we've been seeing because the depositors especially will feel that they're just as safe in one euro area bank as they are in another euro area bank. >> becky asked about the issue with sovereign debt. regulations up until now had said sovereign debt was risk free and mortgage debt was considered higher quality debt than other kinds of debt. do you think to any degree that we are in this crisis today because of regulations like that which cause banks to over indulge in certain kinds of products like sovereign debt. >> right. i think -- i mean, we're in this for a lot of different reasons. and i would list that along with private sector incentives along with it. i don't think i would just point to regulation as being the sole cause. what you describe certainly didn't help and it's the case that risk management processes inside of banks designed to meet regulatory requirements which in a lot of cases allowed banks or encouraged them, as you point out, to do things that have turned out not to be terribly well advised. our hope,hope i think at this p, is that we can learn from this and go forward and we have to be very clear, though, that the risk management processes, that the risk weights, what you are referring to, the riskiness of the assets, be properly recognized on the balance sheets of banks and be properly priced. >> steve, we're going to leave it there. thank you for joining us first with this report. we appreciate your perspective very much this morning. >> great to be with you. thank you for having me. when we come back, the highest court in the land is set to make the most awaited decision of its session. health care and the supreme court. what it means for everything from health care stocks to the presidential election. we have congressman peter welch and congressman michael burgess who are squaring off right after this. 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