Oil is at the moment in dekrien. But when it comes to the oil price, you have to look at it a different way, as well. It can be stable for a long period of time, as well. Mario draghi will take center stage in washington, as well. An outspoken critic tells cnbc the central bank has far overstepped its mandate. According to its opinion, the is illegal. That is the promise to repurchase Government Bonds of problematic country. German exports posted biggest falls since the financial crisis and another sign europes engine is stalling. Webber defends germanys economic model. Im more concerned that we are kind of have the wrong diagnosis of why the German Economy is weak. If you as the medical doctor take the wrong diagnosis, youre very easy to give the wrong medication. Youre watching worldwide exchange, bringing you Business News from around the globe. Welcome to the show. And we just had some flashes out from the European Central bank. It said more would be done if needed. This is its monthly bulletin which provides a sort of porthole into ecb thinking and the central bank recapped the Defense Strategy to first buy covered bonds, safe investments up and back properly and later this year it says it will buy repackaged debt known as asset backed securities. That will include debt that has a junk credit rating. That perhaps is the biggest headline including debt credit rating. The euro jumped significantly off the back of that. It has been trading mostly flat for todays session is now up 0. 4 . Thats coming in ahead of Mario Draghis speech in washington after he unveiled that assetbacked Security Program next week. Absolutely. And the quote here from the ecb saying the new measures will support specific Market Segments that play a key role in the financing of the economy, the euro jumping significantly off the back of that. Were going to be moving, talking more be tail about europe in just a minute. The top of the agenda today was the fomc minutes. Absolutely. Investors are getting a sigh of relief after getting method fed members. Members of the committee had concerns that the rate guidance could be misunderstood as a commitment. Most policymakers would prefer the timeline be data dependent rather than a mechanical date. Global economic weakness in places like france and germany is starting to be felt here, at the Federal Reserves washington headquarters. And that could have an effect on Interest Rates. The fed in the minutes from its september meeting revealed concerns with floundering economies overseas saying, quote, Economic Growth over the longterm may be slower than expected if foreign Economic Growth came in weaker than anticipated. There was concern over the strong. The worries were that a strong dollar would reduce inflation since foreign goods become cheaper in longterm since the dollar is strengthening. Fed staff economists said the central bank may not hit their target, quote, over the next few years. The dollars movement showed the fed in its Forward Guidance and its keeping to the timeline on rates is affecting markets which will affect the economy. Combined that with oil and you get a sense the fed will be worried about inflation being too low. It will want you to pull the punch away late, not early. All of that suggested to the market that fed officials wont be so quick to pull the trigger and raise Interest Rates. The market currently anticipates around a 15,000 rate hike, which would be the first in eight years. But there was concern of an earlier hike and the feds concern about foreign weakness, it takes that off the table for now. All of this concerned mario draghi to come up with a plan to address the economic weakness on the confidence. The ecb is currently putting a program in place to lower rates for borrowing sectors. That could mean the fed keeps Interest Rates at zero until its clear that europe is out of recessionary danger. Draghi put the plan together that gains the confidence of markets. Back to you guys. Lets talk about those fed minutes. That was the reason resaw a rebound in u. S. Stocks yesterday. James ashley joins us now. Really interesting to see what the feds said at its height and indicate that the stronger dollar as well as the slowdown in Global Growth could result in the fed keeping its Monetary Policy intact. Do you think that that is actually the case that we might not see rates rise until late 2015 . The pride of the minutes, june specifically of next year. And i think the more interesting factors about these minutes is the Market Reaction to it, the idea that you would see a 7 appreciation in the dollar and the fed would be coming from that . The idea that you would see all the warning lines flashing in europe and the fed would be coming from that. The idea Forward Guidance. These are, for me, blinding statements of the obvious. The idea that the market has reacted so sharply tells me more about how the market is positioned and what the market is expecting than it does about the feds reaction. To me, it says the market was complacent going into those meetings. The fed is doing what i think is entirely sensitive in response to its communication. Lets look at that Market Reaction a bit more. This is quite a shortterm line to take. But friday when we had the jobs number, including earlier this week, market seem to be positively correlated with the quality of the data coming out, i. E. , good news being good news and bad news being bad news. There are increasing signs coming out of europe that there could be a fairley ugly slowdown coming now. Well talk about that in detail shortly. I think the idea that the fed can continue to normalize in the economy if things get really in europe, then i think the markets are going to realize that thats probably not realistic. There is some connection there. Sure, we can have policy divergence. It can limit to do that. If europe is going to end up back in the mire, thats going to have a meaningful impact in what the fed does. Stick with us, james, because we want to get your thoughts on what the fed does, as well. Its a busy day for central bankers, isnt it, at 11 00 a. M. Eastern time. 1700 cet. The European CentralBank President mario draghi will speak at the Bookings Institute in washington and he will be followed by Stanley Fischer due to speak at the same event. Email us your thoughts on what you think draghi and fisher will say about the economic Recovery Worldwide cnbc. C worldwide cnbc. Com. And as you can see, european markets in the green today following the lead from the u. S. Yesterday bouncing back from the weakness we had earlier in the week. The stocks 600 up 1 . The stoxx 50 up 1. 2 . Its quite a comeback in european markets. Were back to a market where bad news yesterday, more dovish comments leads to good news in the markets. Green across the board, the ftse 100 up 0. 75 . Germany up 1. 5 . Perhaps up 1 . Italy up 1 , as well. You would think equities might sell off, but that hasnt happened. Tenyear treasury yields, 2. 3 . We saw both equity buying and bond buying over the last 24 hours. Tenyear german bund has moved less despite having more macro data out in the last week. Its just below 0. 9 , but record lows continue there. 2. 3 , very, very low yields. Perhaps that is suggesting that we wont expect any significant announcement towards the likelihood of rate rises from the bank of england later today and seen again as a bit of a safe haven trade relative to the rest of europe, italys 2. 26 . Forex, the u. S. Dollar has just given up some of the gains over the last week or so that its had. Still, a very strong move over the last few months and weeks. The euro bouncing back today, 0. 36 on expectations we wont get that rate rise in the u. S. For a little while longer. Similarly, the yen continuing with quite a strong weak. But still touching around those low levels of the last five or six years, 107. 67. The aussie dollar bouncing back against the u. S. Dollar, as well,. 889. And sterling ahead of the bank of england meeting. Lets get a look in on whats happened in asian markets overnight. Sri jg jegarajah is standing by for us as ever. Hi there. Wil, were looking for a gain on the order of 1 or more. Its the banks that were the big gainers on the broad index. As you pointed out, the currency is ex eithering a strong correlation with the broader indices in japan. So any strengthening that we see in the japanese yen is going to encourage some selling of the big exporters and bifurcation. Thats going to be very negative for the Broader Market and that is what you are seeing here, put quite simply. Shanghai composite, we did see some profit taking earlier on the session. The banks also are strong performers there. All in all, we are seeing a strong turn around in the asian session. In the near term, what mario draghi has to say tonight in washington, what vice chair Stanley Fischer has to say tonight at the same event is going to be pivotal here. We see the dovish comments from either of those bankers, central bankers, i should say, that that is going to put some pressure on the u. S. Dollars and it would help this risk environment in the equities market. That could set the stage for further gains. That meeting is going to be very important. Back to you now. Sri, thanks very much. Now, professor hans veteraner sims has long been a vocal critic of the ecb, criticizing Central Bank Policies which create imbalances and heighten ricks for the eurozones member state. As ecbs Vice President will be, quote, significantly larger as a result of his latest measures and then struck a warnings including over outright monetary actions. According to its opinion, omt is illegal. That is the promise to repurchase Government Bonds of a problematic country. And stay tuned. Well bring you more from our interview with hans wernor sinn in the next hour. Another man critical of the ecb has been jeff weber. What i was saying was there are sudden riskes still there and if you want to eliminate those, it might be a measure of caution to put in some protective measures so that listed companies are not in an adverse position to those companies that have fixed ownerships where you cannot do that. So in a way, its adding to a level Playing Field if you put some of these provisions in place. Its not a criticism of the ecb or the way they conduct the stress test. I think its very complicated. I think theyre very in the way they prepare that. Theyre really determined to do this asnce in the market. From what ive seen in the design measures, many of the weaknesses of the previous tests are not there yet. And yet the ecb continues to drift towards outright sudden buying. Weve had this salami approach which has taken us down to abs now. Is it time for a grand gesture from germany . You resigned. Should there be some grand gesture from germany to expect its disconsent with the fact that neither the italians or the french apparently can balance their budget . One way forward is probably to firmly put in the hands of government the responsibility that they need to pay, first and foremost italy, but also france. Others need to get control of their budget. Continuing to violate european rules or even indicating that theyre willing to soften these rules yet again would be, in my view, a dentmental mistake. That was the of the confidence crisis in europe last time around and germany and france unfortunately violated those rules. Doing it again would undermine, in my view completely and for good, the credibility of the fiscal framework that we have for europe. If the german data continues to weaken and we continue to see further Euro Weakness which has in germans are not particularly bothered about having a week in europe at this point, are you worried that some in the government might blink, might say okay, let the ecb have its head, let mr. Draghi do what he feels they need to do here because the German Economy is seeing that. Are you worried about that . Im more worried about do we have the german diagnosis and if you as a medical doctor take the wrong diagnosis, youre easy to give the wrong medication to stay in the picture. One of the reasons were seeing the weakness is because of the ukraine. Theres a lot of political risk. Germany has a 1. 4 of german gdp exports to russia. Now, most of the weakness in the german industry can largely be displayed by the direct impact. If we move to a full fledged sanction regime going faufrd, thats 1. 4 of gdp which ultimately disappeareds and looks for an export confirmation. What have you made of the confirmation hearing for the commissioners . Youll take his role but, obviously, there has been some pressure to remove some banking responsibilities from him. Its been like a circus at times watching the process roll through. A brit timely gets the job, but then there is a punishment handed down, if you like. Im more concerned about the fragmentation that there is a different set of rules that applies to the uk. Theres a different set of rules that the germans are implementing and the french are implementing and the germans have come up with their own set of rules for a global bank like us, such divergentsies in regulation are actually very hard to cope with because you need a different set of rules you apply. We are looking for a pan European Regulation that is giving us a level Playing Field in europe. James, how precarious of a position is the euro area . Very. Very precarious. If we look at this from an activity perspective or from an inflation perspective, the warning signs we were talking about earlier is clearly at issue. When you consider inflation at 3 , its. Of a slowdown. So the position is precarious. We have always gone back to the existential crisis and the recovery is ae very long period of time. James, data this week has called into question the biggest robust economy. If the data out of dpermny continues to weaken, do you think germany has no choice but to give into spending and full blown quantitative easing . In terms of spending, it would be is sensible to have german stimulus and from the other that can afford the fiscal stimulus in the economy. The second part, i think thats conceivable. And if it continues, it probably wont happen and even if it does happen, theyre going further continuing to press sovereign yeel. Its not obviously going to do much good. James, lets talk about that. 6. 5 on the greek bond, is that enough . Well, i think the disturbance of running from the spread compression, were in a different phase because of the recent data flow. For looking at our cross currency base, probably now isnt the time to be putting on risks. So within the euro area, i think the spread compression, its possible we could see bunds a little higher as germany starts weak and gets more momentum. I think yields could drop, as well, yes. Coming up, no more pain at the pump. A drop in u. S. Gas prices leave more change in consumers wallet. He makes stuff up, he throws bonds and he acts like a 6yearold. Find out which legendary investor received the scathing review and what plans he has for apple. And red bull might not give you wings, but that line sure sticks. Let us know your favorite commercial slogan. Join the conversation on worldwide exchange. Well be right back. Your customers, our financing. Your aspirations, our analytics. Your goals, our technology. Introducing synchrony financial, bringing new meaning to the word partnership. Banking. Loyalty. Analytics. Synchrony financial. Enagage with us. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov coming from the dovish statement today, suggesting there might be easing coming globally. The ftse 100 up 0. 75 . Germany up significantly almost 1. 4 . France under 1 . And a check on the bond market, u. S. Treasuries rose following the release of the fed minutes yesterday, which indicated that rates may not rise sooner than expected. You can see the tenyear yield at 2. 3 . The tenyear bund yield at 0. 89 right below 1 . And the dollar index is at a twoweek low following the dovish fed comments. If you look at it against the yen, the yen has been quite strong this week, which has weighed on the nikkei. The forex rate on the way for you. And against the euro today, the euro has strengthened, following the dovish comments, including the pound which was up earlier today ahead of the bank of englands decision. Now, Japanese Companies are increasing their capital spending. This may suggest that the outlook for the economy is brightening. We have the full story from tokyo. Thank you, wilfred. Core machinery orders rose for the Third Straight month in august, climbing 4. 7 from the previous month. This is far better than what economists were expecting. And its good news will certainly be welcome by the government and the bank of japan. Because recent indicators have been showing that the economy is struggling to recovery from the april consumption tax hike. At the bank of japans Monetary Policy meeting on tuesday, governor koroda downgraded the bojs assessment of industrial production, saying it has been showing weakness. The questions dense index released tuesday indicated that the economy lost strength in august. The government said this may signal possible downturn. Now the upbeat figures of machinery order