and i got my hero back. purina cat chow healthy weight. good morning, everybody. breaking news from wall street, the dow is nearly 150 points up, an all-time high. staying above record levels. on the strength of strong economic numbers from china is a jump in the european retail sales market. we re going to keep a close eye on those numbers all day long. hi, everybody. i m thomas roberts. upping the ante. one day after releasing their plan to keep the government up and running, republicans are blasting the president and democrats in the senate with just three weeks to go until the next big deadline. both chambers with congress will be working on rival stopgap measures. is in the senate, democrats will be working on their proposal to keep the funds flowing until the fall. in the house, truls committee will take up the 982 billion plan introduced by republicans yesterday. house speaker john boehner saying this in the last hour. the house, our goal is to cut spending. it s not to shut down the government. that s why we re going to move this cr this week and we would hope that the senate would take this bill off and move it quickly. the president on friday agreed that there s no reason to get into some debate about shutting down the government.7é)f we don t believe as democratñ that we should let a sensible mindless blunt guillotine decide where we make reductions in our budgets to extract savings to reduce our deficits. we believe we can do this in a smart way. so new poll numbers out today from gallop showed the president s approval has taken a hit since those sweeping across the board cuts known as the sequester kicked in on friday. his approval has dropped 46%, below the 50% number and the president s disapproval number also at 46%. that s the highest we ve seen the number since nov;zytñ clearly from the evidence of the gallop poll that was out about the president s rating, i think that clearly people are tired of the political gain. meanwhile, the president getting some serious tough love from new jersey s straight talking governor, chris christie who is blasting obama for his, quote, failure of leadership. i don t have the first idea of what they re doing down there. so i don t understand it. i don t understand why they haven t fixed it already. real leadership would get this fixed. you get everybody in the room and you fit fix it, not kwaulg a meeting two hours before the thing is going to hit to have a photo open in the driveway at the white house. that s not real leadership. joining me to talk more about this democratic congressman adam schiff of california. it s good to have you with me. let s begin by talking about the realities of where we are in this march madness, the calendar face for everybody they need to look at is march 27th. that is when cash starts to dry up completely. if we look at what came out of the house with the new gop bill that i referenced off the top of the show, it seems to be showing a softening of the sequester, shifting 10 billion to pentagon operations, accounting for 2 billion for embassy security, extending federal employee salary freezes. is this something that you can get on board with? no, not the way the house is drafting at this point. i do expect it will be changed in the smeet. basically what the speaker wanted the speaker got and that is we now have an austerity budget and that s going to be, i think, a killer to the economy, to job growth. what the house gop is now suggesting in terms of keeping the governments open is they ll provide some flexibility for the pentagon, but they don t want to provide the flexibility for any other part of the budget. why be indiscriminant in these cuts to education, to health care, to research, to other vital program that s we re going to provide flexibility for the defense department and we should provide flexibility in every other department. but frankly, i think the whole sequester in this whole aus tirty budget is a real mistake and ought to be done away with and we ought to move to a balanced program. as we look at wall street and we put up this graphic, so everybody can watch what we re watching, seeing the dow up 150 points, opening the a all-time highs today, that s wall street. main street is a completely different picture where we have blue collar everyday americans herg our elected officials rattling off fear about pink slips going out. how can you justify in your colleagues justify people in america fearing losing their job when it s the simplicity of doing your own job will save it there s no way to justify what s going on here in congress. it s been deeply frustrating that we don t have a negotiating partner. one side got what they wanted with the sequester which is we re going to have very deep across the board cuts. that is not the position i take. it s not the position the president takes. we think we ought to reduce the debt in a thoughtful way that includes new revenues, about that doesn t cost us hundreds of thousands of jobs. this is crazy. the economy is finally poised to recover and we just keep getting in the way. so believe me, i can understand frustration around the country, but that frustration really has to be visited upon those who are the bar to progress. and here, it s those that are unwilling to camp mize, that are unwilling to do nothing but austerity that won t provide a balanced program which is what the voters said they wanted just in november. so it is deeply frustrating and i can certainly understand where the american people are coming from on this. as we know with second term administration, the president has a short window to get things done before the legacy starts. so a lot of americans would like to see something done with a grand bargain that would forecast the future for a ten-year span, if possible. we know the dead lock and how it exists in washington, they re talking about what a lot of people nbc know. he wants those in his party to do well but it is nota of his particularly at this point. can the president take back the house with the way things are going right now? obviously, people on the right, the gopers are fearing the fact that they could be primaried if they were to go ahead with any type of deal right now to raise revenue. isn t it the same problem for democrats who are worried that they won t be able to take the house back because they can t deal with our debt? well, the bigger problem right now is within the gop. and we see that because we see the gop frankly at war with itself. we don t see this in the democratic party right now. and what it is tea party wing that wants to cut at any cost. it is giving the republican brand a brand that stands for nothing but cutting, nothing but austerity and frankly, putting job growth as a secondary priority. i think it will cost them dearly in 2014. but frankly, i m not interested in waiting until 2014 when american families are hurting right now and people are looking for jobs. yet i think it s a real price and i d love to be in the majority again. but i don t want to have to go through another year and a half of this kind of manmade economic crisis when we can have a frankly, a more thoughtful reasonable bipartisan plan that would get americans working again, that would get our growth up to 3%, 4%, 5% instead of an anemic 1 % or 2%. and that means the difference between potentially hundreds of thousands, millions of americans working or not working. and that really is what is at stake and i hope that would be the highest priority rather than the political repercussions in 2015. congressman, thank you for your time today. we would like to say good morning to april ryan, white house correspondent for american urban radio, former democratic governor of pen opinion ed rendell, and republican strategist chip saltsman. good morning to all three of you. governor, i want to start with you. as we look at what the temperature of america is right now, there s a new cbs poll saying the blame to reach failure by march 1st, house/gop 38%, president obama and democrats, 33%. both 19%. how much down the wire are we going watch this game played without some type of deal? in you said knit your question to the congressman. you said it properly. we need to get serious on both sides and stop kicking the can down the road and do the what they call the grand bargain. we need to put in place cuts and revenue that will not only take care of our debt crisis for the next ten years, but as importantly, for the second ten years. and it s very, very important. and i will say this, although i ve been critical on occasion of the president for not leading. the proposal the president put on the table included things like changed cpi for entitlements. now, that s a very difficult sell for the president to his base to democrats in congress. but he s willing to make thattest if he gets in return reasonable revenue. and by the way, he s not moving the bar on revenue. if you recall before the fiscal cliff, he called for $1.2 trillion in new revenue. he got 600 billion at the fiscal cliff. we need another $600 billion to go along with another billion or a little bit more than a billion in cuts. so i think the president has put a reasonable proposal on the table. he has to make that clear to the american people. but he has to make clear to the american people that he wants to settle this, put the debt problem behind us for the next decade, decade and a half. it would be nice to be able to put this to rest. but do americans really understand what the sequester means. we get back to the phrasing of all this and is take6@+l÷ a0÷bp the poll proving where the sequester affect you in the cuts? 53% of americans say yes. 39% say no. listen to chris christie as he was talking about what washington, d.c. is like these days and his total ignorance to it. it seems to me it should be pretty easy to fix. we ll real leadership would get this fixed. you get everybody in the room and you fix it. and he was saying before he just doesn t know what the heck is going on in washington, d.c. chip, for those outside the beltway, is it just that easy to say, get into a room and get this done? i mean, all of us, if we were at our jobs and we re not doing what s expected of get canned pretty easily and people would expect us to do the projects that are ahead of us. yeah. why isn t it that easy in d.c.? i m pretty sure i d get fired. thomas, nobody would fire you. that s not that crazy. but i think what happens is this is a problem most people don t get. they don t understand how it can be a fight of $85 billion over a $2.2 trillion deficit which we re spending another trillion in deficit railroad already. they don t understand, why can t you fix this? when you get into washington, it s a different deal. that s what the frustration is with the american people where you can t get two sides in a room and say how are we going to do this? and the bottom line here is real simple. i think governor rendell hit on it. the republicans feel like they gave in on revenue last year. they got tax increases, but zero spending cuts. but they re not willing to negotiate on revenue any more. they want to go after spending cuts first. and i think that s where the starting point is and it s hard to start when you know where both sides don t want to give. april, when we look at using europe as an example, that came up briefly with congressman shipp, and we ve seen the experiences they ve gone through with the hasty budget cuts thing it was going to be a way to bring them back, slashing, spending, raising taxes, britain, spain, portugal, italy, they ve all seen their debt burdens rise and most economists would say now is not the time to cut. so why wasn t republicans at least take part of that message into the calculation that revenue is a balanced approach? you have to remember, what the republicans are dealing with and the democrats are dealing with is party politics and both sides are coming together, facing each other, looking at each other and waiting for the next person to blink. unfortunately, the american public, middle class, middle income persons are the ones that are suffering right now. and you have to remember this. the cuts are inevitable either way, whether it s a grand bargain or a sequestration. there is no win here. it has to be done. it s a matter of when and they re they re going to do it. the cuts will hurt inevitably. going back to an issue about putting them in the room, what did the president said, he can t do the jedi mind melt meld last week and he can t force them to stay. you have a lot of pride, a lot of politics and whatever else is hovering around. last year we saw greece. we re worrying about what is happening here. unfortunately we re hearing a lot of departments talking to their staff saying, look, it s just going happen and we may furlough you one day a week, what have you. we re hearing that all around d.c. right now. airport, i want to keep ow track but with a different topic. jeb bush and the week is out. they say, quote, that he is a bush and that s going to be a problem. this is in reference to the fact that over the last 24 hours he s been in the news cycle with his new book with people making the second lagz of this is a start to talk about 2016. they say that s go the going to away problem. it s not an insurmountable problem, but that the american public is wary to the tax brand. do you think there is a problem with the bush brand? i think there is. the bush faux family, two presidents came out of that fem. a 41st president and the 43rd president. you have the son jeb bush who is aspiring to be a president poeg possibly with his new book. you but you have to remember, george w. bush, the republican matter danced himself from him at the convention because these blame him, as well, for the problem with the current economic situation. jeb bush has a mighty hill to climb. governor rendell, your take? i think jeb bush will be, of course, somewhat hammered by the bush name. but i think he ll be considered on his own merits. he s a problem solver, someone who has shown the ability to work both sides. and i think a little less confrontational than governor christie. i think over the long run he might prove to be a very attractive candidate. but, again, you can t avoid making the tough decisions. on his immigration plan, he ducked the path to citizenship and that s key. there aren t going to be democratic votes granting immigration bill without a clear path to citizenship. so we have to figure out what s workable, what we give. we do border security, strong in return for a reasonable path to citizenship. that s the type of leadership that jeb bush is capable of. i think in the end he ll be considered on his own merits. jeb, quickly, it seems like he s playing catchup because the book was going to the printer before the republican party moved so fast on their immigration thoughts. so it s kind of dated now. it is. this today s world, it s dated if it s a week old. as much as they re moving right now. and jeb bush, i agree he ll be judged on his own merits, but he can t change his last name. it helps, it hurts, but he s got mark arubio that s got off to a fast start. i m not sure that was such a fast start considering the response to the state of the union. but we can argue about that at another time. if i had a bottle of water, i would cheer you. i m going to take a tip of water for you a three of us. thank you all so much and we re looking at the markets up 154 points. banner tuesday. up next for everybody, framed, the escort in the doe minudomin republic is now changing her story. a winter storm is in the midwest. we ll tell you exactly where it s heading. then president obama s poll numbers, is he being unfairly blamed for the sequester or is it right? 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[ female announcer ] ask your doctor about lyrica today. it s specific treatment for diabetic nerve pain. to hear more patient stories, visit lyrica.com. tens of thousands of dollars in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you. 234u developments today in a sex scandal surrounding new jersey senator bob menendez. the prostitute that said she was paid for sex with him now admits that she was paid to say that. you wrote that one of the women claims a lawyer approached her and another escort asked them to how help frame manendez and his friend, a room negligent campaign donor, a guy named dr. melgin. what else can you tell us about the latest twits and turns in this? sure. well, you know, the allegations about him being engaged with under age prostitutes and participating in sex parties while vacationing with his wealthy donors certainly brought a lot of unpleasant questions and certainly a lot upon senator manendez. yesterday we learned through court documents of the doe minute can republic that at least two people that participated in making a tape said that they were hoodwinked into doing it and never thought that they were one woman said she never thought she was being videotaped and a man who arranged for them these women to make the tape said he was also duped by another lawyer in the doe minudominican republic who r told him she needed to make it for a divorce case and is it s been intriguing. meanwhile, the website that first ran with the story posted two interviews of two women claiming to have been part of the story. however, the site, they ve been asked about this say they stand by their reporting saying that the prostitute in the post story does not appear to be the one of the women that we interviewed in 2012. in addition, the attorney for the d.c. s sources say that the post s allegations are fabricated and that the affidavit is false. how do you respond to what they re accusing of you? well, you know, at the post, we try to focus on documents and is interviews with people kek name and identify with great surety. and we reported what the what the individual said in affidavit submitted in the court of law. now, could this be inaccurate information about what they served in their affidavit? yes. we quote fbi affidavits in which they give the reasons why they re the daily caller, if i understand what they re reporting this morning, says that they don t believe this is a woman because it s not the same name as the woman that was the name that was given to them and that the age is different, that the woman that they talked to said she was 24, not 23. the fbi says it found no evidence to back up the allegations against the senator. thanks for your reporting and thanks for joining us. thank you. absolutely. coming next, the living role of gun violence, why nonfatal shootings often leave the most lingering imprints. plus, not one but possibly two more sinkholes pop up in florida. details ahead in the news now. first, we ll bring you today s producer pacific, braus to us by seven burn. this isn t your typical interview. meal la kumis find the link on any pain page. i m a conservative investor. but that doesn t mean i don t want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what s your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. constipated? yeah. mm. some laxatives like dulcolax can cause cramps. but phillips caplets don t. they have magnesium. for effective relief of occasional constipation. thanks. 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[ sigh of relief ] with an intuitive motion activated lid and seat,ad bold makes sure you ll never have to ask him again. some of the stories topping the news now, a major snowstorm hampering the midwest. nearly a foot expected in d.c. tomorrow. it is day two of three conclave meetings at the vatican, but still no date for when the college of electors will select the next pope. still waiting on the arrival of five more voting cardinals. venezuela s government says the infection of president chavez is getting worse. new details in the death of an openly gay mayoral candidate in mississippi. marco s family said that he was beaten, dragged and burned. law enforcement officials have refused to comment on those allegations. slis mris have charged 22-year-old lawrence reed for the murder there. two more possible sinkholes found in florida and luckily no injuries have been reported from these new incidents. and is one miles away from where a 36-year-old man died after being swallowed alive in a sinkhole under his home as he slept in his bed on friday. featuring a stunning work of technology the lexus es. this is a reason to look twice. get great values on your favorite lexus models during the command performance sales event. this is the pursuit of perfection. during the command performance sales event. at tyco integrated security, we consider ourselves business optihow?rs. by building custom security solutions that integrate video, access control, fire and intrusion protection. all backed up with world-class monitoring centers, thousands of qualified technicians, and a personal passion to help protect your business. when your business is optimized like that, there s no stopping you. we are tyco integrated security. and we are sharper. so house democrats are slamming the gop s plan to curb the pain of the sequester and prevent a government shutdown at the end of this month. the plan leaves the see zester cuts in place but moves money around to soften the blow, shipping 10 billion to pend gone operations. it requires the government to keep current staffing levels at detention centers for undocumented immigrants and boosts staffing by $10 billion and funds the government through september 30th. last hour, house democrats called the sequester cuts sensible. now we re seeing the cut, cut, cut, and we re here to say there s a better way. there s a balanced way. steve, it s good to have you. as we ve been talking about through this hour, there s a new poll from cbs finding more americans blame republicans for the sequester over president obama and the democrats. in the first hour of the show, i had an opportunity to speak with congressman schiff, a democrat from california who has problems with the plan drafted by house republicans. take a listen. what the house gop is now suggesting in terms of keeping the government open is that they ll provide some flexibility from the pentagon in these cuts but they don t want to provide flexibility for any other part of the budget. that doesn t make any sense. why be incripple nant to these cuts to education, to research, to other vital programs? sir, how do you react to that criticism? can you justify where you are able to give more incripple nant funds to the pentagon and defense and like the congressman says, make these big hatchet cuts to other programs, entitlement programs? well, i think we all agree that there s a better way to prioritize the spending reductions, no doubt. but i spent 28 years in the private sector. it s not uncommon when you re in business to find ways to find a 5% reduction in spending. the challenge we face back here in washington is the reckless spending and the last of the will to do any reductions in spending. there s no doubt there s a better way to reduce spending but we have to start somewhere here. the legislation moving forward will provide some additional flexibility so we don t compromise national security, fbi, wire files and so forth so that we have the essential services covered as we keep the government running. sir, how do you justify? we ve been watching this morning, too, the dow jones up by 147 points right now, so we re seeing a banner day on wall street. but meanwhile, we re hearing from our elected leaders the blue collar every day mrerns are going to lose their jobs because of the sequester and economists have said look at europe and the austerity measures that went into place for europe by huge spending cuts at a time when they needed to continue investing in a fragile economy. so don t you fear that pushing it to the edge might put us in the same way as portugal and spain? some let s remember here and frame the size of these reductions. we re talking about a 5% reduction at the moment. these are drastic cuts and i think the challenge you face is that rather than looking at the issue and looking at ways to find a bipartisan way to more effectively do spending, we have a president, we have people out there campaigning rather than coming back and talking about policy, finding ways to reduce spending in a responsible manner. but i m a dad of four kids and, you know, our kids have learned they have to spend within their means. and we have to ensure the government does the same thing. and so these aren t outrageous cuts. we re talking about 5%. and i think it s about time that the federal government starts to behave more like every day average americans, everyday small businesses. when we look at what house budget chairman paul ryan has been saying, that he s going to be rolling out his budget next week for everybody, politico is saying he s considering applying his medicaid change to americans at age 56. previously those 55 and older were exempt from that plan. wa is your take on that? would you be able to support this change? well, we have to take a look at the specifics of that when it finally comes out. but i have two grandmothers who both live on medicare. we have two goals in terms of reforming medicare. one is ensure we don t stop to seniors and keeping the promise we make to seniors today. but we have to look at our kids and grandkids is and say if we don t reform these systems, this important safe net won t be there when it s time for their retirement. so we need to have an adult conversation here in washington about how we reform these important safety nets, protecting seniors today but looking to the next generation because the failure to reform these systems by the medicare s trustee on a mission, they re bankrupt in 12 years. it s the responsible thing to do right now to reform these systems so they re there when the next generation retires. congressman steve dane, sir, thanks for making time for me. i appreciate it. thanks, thomas b with thanks for your time. so let s get on the dig right now with ezra cline, a columnist for the washington post and bloomberg. ezra, you are listening to the congressman there. let s talk about what the house wands to do, what they proposed and show our viewers, it s $10.4 million by cutting from other accounts, it allows u.s. border and protection to keep its staffing and beds for detainees and it provides $2 billion more for diplomatic security. this isn t normally the kind of plan the conservatives would go for. and when we talk about that kind of spending. so what s the strategy behind there, bill? it s a pattern and what republicans are doing after the election is fascinating. right after the election, you had a real movement in the republican party where people said, we went too far in becoming the party of spending cuts. house majority leader eric cantor gave a speech trying to move republicans to bid off of solely focusing on deficit reduction. bob beby jindahl moved. to talk about this bill today, it is looking at government funding levels that are, i believe, around 55 billion less than we are currently doing and are 33 billion below the last republican budget, the last paul ryan budget. you mentioned a moment ago congressman paul ryan s next budget is expected to balance the budget in ten years as opposed to 2040. that will require going deeper into medicare and changing for people over age 55. the new set of spending cuts are significantly harsher. all right. let s look at that, because those who are protected thunder bill and those who are not and what the house gop wants to do the bill does not restore the $789 million cut to the program under the ed department. it extends the two-year pay freeze for federal workers and it requires the post office to deliver mail on saturdays. so it doesn t seem like the republicans have learned much from the elections, especially since there was a sweeping mandate from americans that most were okay with trying to figure out the act with the revenue. cutting loopholes. i mean, obviously, that s been true. there s been no real movement on the anti- budget. but the republican view is they permitted democrats to raise taxes by about $600 billion. which notes with less with boehner, he was around $800 billion. they ve committed tight move forward on the house floor, they now don t ever to v triez taxes again and it s now about more spending cuts. so far we ve passed about $800 trillion in spending cuts and another $600 billion in tax increases. the 1.8 trillion came to 2011. apparently we ve passed more spending cuts than we have tax increases and yet for republicans, they feel that having made this quite small concession, for examplely, on taxes and not even one that they voted for. boehner simply let it come to the house floor. now they are somehow exempted from having to make any further compromises. i don t think that s a very wise political strategy going forward. the programs that are so treasured by american, the political backdrops could enend up being quite severe. coming up next, $12 billion a year spent on gun violence. but the financial toll is nothing compared to the toll that it takes on gun violence survivors. plus, the new campaign to help make brain injuries awareness. is president obama being unfairly blamed for the sequester or is it fair? 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[ female announcer ] honey nut cheerios cereal heart-healthy, whole grain oats. you can t go wrong loving it. put down that cup. researchers studied the diets of 60,000 pregnant women and the data revealed that caffeine in their diets wasn t from soda, coffee or chocolate decreased the risk of having a baby with low birth weight. coffee consumption was associated with longer pregnancy. a bipartisan plan too curb gun trafficking is being introduced in the senate. all this comes at a time of heightened national awareness about the costs and thekp influenceslp)t gun violence. according to a recent study, america pays at least $12 billion a year for court, hospitalization and insurance costs related to gunshot violence. and a new 60 minutes vanity fair poll on that issue, movies and pop culture have an impact on gun violence. then there s the harrowing toll examined in a new article posted on msnbc.com. my next guest said coverage is some of the greatest social t tremain lee. i want to read an except from the piece you wrote about broken bodies in mind. you wrote about the young girl who survived a shooting ryann brown. she doesn t remember much from the night she was shot. just a shadowy figure creeping up alongside the car that she and is a couple friends were sitting in. she w woke in the hospital. she couldn t walk, chew, swallow or move the right side of her body. she count support her head and the thoughts of it were slow anded. she didn t die. she is trying to cope with life on the other side of this. why did you want to examine her story? i think sometimes it s so easy to focus on the homicide rate, the valley that cities pull together, but beyond those numbers, there are victims who survive and they re forever changed physically, emotionally. the people in those forces that we never hear about. but living k just as difficult. al kyle is another young man you wrote about. we don t all make it to a coffin. we don t where it almost appears as if it would almost be easier for them because of the burden that they face. surviving sometimes, especially for people like wardell, you ll never walk again. learning to adapt the your physical world around you and with the scars in your body, it s horrifying. when we think about the coverage that you ve done, it s not just limited to the vikt manies. spoken to crime experts, what s their take away, their perception of gun violence in the country? obviously, this is all part of the fields that they re in, but their take away and the amount that they see. a therapist will tell you that sometimes the victim will become the victimizers. where there isn t from the very beginning of safety. sometimes there s violence inside the home, sometimes it s violence outside the home. others will say there needs to be more police in the communities to help kind of dissuade some of the young foets folks who might engage in some sort of violent acts. but there s a breakdown systemically, institutionally. and chicago is ground zero. we re taking a close look at ground zero, but it s happening in chicago, in new orleans, in cities all across this country. i m not sure if we have our finger on exactly what the route is. it s not just law enforcement. it s not just holz around guns, but it s altogether. and i think that s wa people are struggling with. hopefully they can continue talking about this. msnbc.com s trymaine lee. thank you again. sotak two more years on the bench for the oldest supreme court justice. ruth gader ginsburg saying she s going to stay two more years, health permitting. she is now 79 and is now in her 20th year. the polls are open in los angeles where the race to replace the mayor is looking more and more like a free for all. one top heavy with scandal spending. that includes $19 million in consultant and campaign funds to celebrity endorsements. eric was always the idea guy. when we were 8 years old, he had a crazy idea to start a break dancing crew and to dance battle other dance crews around time. wa we lived together later became the basis of the hit movie breaken 2 electric boogler. a runoff will come up may 21st. a recent usc l.a. times poll puts eric dargetti on top ahead of wendy gruelel with 25%. max and penny kept our bookstore exciting and would always come to my rescue. but as time passed, i started to notice max just wasn t himself. and i knew he d feel better if he lost a little weight. so i switched to purina cat chow healthy weight formula. i just fed the recommended amount. and they both loved the taste. after a few months max s special powers returned. and i got my hero back. purina cat chow healthy weight. big time taste should fit in a little time cup. new single serve cafe collections from maxwell house now available for use in the keurig k-cup brewer. always good to the last drop. is he being unfairry blamed for the sequester? yes, the buck passing has to stop. know has had their chance to fix this, but they are more interested in blocking the other party. if they can t work together, it s time to find members that can. we get this from hall saying not unfairly both sides are equally to blame. all right. keep the comments coming in. you can find us on twitter and facebook. so talking about the president, coming up this afternoon he is setting aside the sequester drama to spend some time with america s injured vets. the commander in chief will travel to bethesda, maryland, where he will visit with troops that have been hurt in afghanistan and other combat zones, and all this is happening as military advocates launch a major social media movement to raise awareness about the physical and emotional battles that these wounded warriors face as they recover here at home. spearheading that endeavor, my next guest, bill white, the former president of the intrepid fallen heroes fund. you are a good man doing good work. let s talk about what is going on. today s awaerns, it s a social media campaign. i know all this was born out of your time being with the president at the intrepid, but what is the campaign s mission to get people to understand? yeah. well, it s very important that we have actually a national crisis right now. these returning war heroes are suffering severe cases of post traumatic stress and tbi, which is traumatic brain injury. you know, there s a suicide a day in the u.s. military, and we just have to stop as a nation to think as the president is visiting walter reed, what can we do to help support those families that literally have been crippled by these very difficult mental health crisis issues. we are launching a campaign called make it visible because when i look at thomas roberts i say he looks pretty good, but he might have traumatic brain injury. he might not be able to remember the names of his own children, for god sakes, and that s really a very serious issue when you get in these positions where you have been blown up by an ied, it rattle your brain to the point where that happens. do most vets feel invisible when they come home? especially those that have lost blood for this country and are dealing with the other side of war and having to face the very real consequences. yes. it s very true. make it visible.org actually brings these unseen wounds to the forefront, and it also allows us to show how you can help us build treatment centers. we re actually in the middle of $100 million campaign. we raised almost $30 million to date. 100% of every penny will go to build nine centers around the country. the next one we re building is at nashville at fort campbell, kentucky, and this campaign actually when you go on the website, make it visible.org, you can click on and see how a member of the armed forces is suffering from tbi and post traumatic stress, and you can help today because we really need people to help. today s big push is social media, correct? yes. you guys i know you are out front on this normally like meeting great people that you can get interested, but this is a new and direct way that you can get to everybody s smartphones and i phones through twitter and facebook. that s right. this amazing agency t3, the think tank, donated probono this entire campaign. we have celebrities like mark wahlberg and dana white from the ufc. i m sure thomas roberts will be tweeting this because as the son of a veteran you know how important it is that we thank our troops every day and that every penny that goes to this important effort will go to build these centers. we can build them all in a year if we had all the money today. is the goal $100 million? is that correct auto the website? the goal is $100 million. the intrepid fallern heroes fund is ambitious. you know, we raised over $180 million these last couple of years to help the families of the troops that were killed or wounded, but as you said, you know, you look at some guy who has no legs or no arm or that s been wounded, people go up to that person and say thank you for your service. someone who has maybe even a more severe traumatic brain injury never gets thanked, and they re the ones that are suffering in silence. you know, there is a navy seal command this year just took his own life because he felt he had nowhere to go. this is a place where we can go now to help our troops today and to help them to get their lives back. great to see you. thanks so much. we ll send everybody a twitter and facebook. that s going to wrap things up for me today. thanks for joining me. we ll see you back here tomorrow, 11:00 a.m. eastern. senator chris murphy, congressman sandra levin and former cia operative valerie plame. now with alex wagner coming up for the next hour. hey, thomas. we re talking bazooka joe, american hero. is joe biden the administration s secret weapon? karen finney, martin, sam, and jacob weisberg will look into how the vice helps or hurts president obama in the second term. plus, jeb bush is putting out all the signals that he is in for 2016. where does his back and forth on citizenship leave republicans on immigration? best-selling author david baldacci will join us for a history lesson and debate whether or not we suffer from american amnesia. all that starts when all that starts soon in 180 seconds. i have low testosterone. there, i said it. how did i know? well, i didn t really. see, i figured low testosterone would decrease my sex drive. but when i started losing energy and became moody. that s when i had an honest conversation with my doctor. we discussed all the symptoms. then he gave me some blood tests. showed it was low t. that s it. it was a number not just me. 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Transcripts For CSPAN2 U 20130304 archive.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from archive.org Daily Mail and Mail on Sunday newspapers.
Transcripts For CSPAN2 U 20130304 archive.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from archive.org Daily Mail and Mail on Sunday newspapers.
u.s. war ships patrolling the waters off yemen. those on board engaging in a show of force to block iranian vessels suspected of providing weapons to the rebels in yemen. iranian officials are not backing down. the commander of the regular iranian navy said we don t let anyone give us warnings or threats. our correspondent nick paton walsh has the latest developments for us. reporter: john more and more fire power ability assisting the saudi-led coalition around yemen. the latest joining about ten ships already in the region. uss theodore roosevelt and the carrier, uss normandy. there is a practical dimension to this. the u.s. has eyes on about nine ships thought to be carrying weapons. it is unclear the destination. if they will move to the yemeni coast. bear in mind john united nations security council resolution accuseing an arms blockade. it will become a point if the iranian ships move toward yemen that the u.s. is faced if they let them carry on or block them. it may likely not come to that but it does raise the stakes. so many more issues and weaponry in the highly contested volatile gulf with the trade routes around the world. if something did go wrong, it could escalate quickly. this too, while the u.s. is trying to talk peace. nuclear negotiations with iran and trying to show the long-term decades long allies saudi arabia is behind them in the conflict in kbremsyemen. one in which it is clear it wants to show it will back longer term allies. one piece of the puzzle in the new relationship or almost will relationship with the united states and iran. nick paton walsh, thank you. the iranian role in yemen is evidence to spread influence in the middle east. iran is training and equipping the militias in iran. and the senior parliament said sanaa is the fourth capital to fall in our hands. how does this now concern this washington post correspondent who is being held on charges deemed ludicrous by people here in the united states inside iran? let s bring in senior international correspondent frederik pleitgen standing by live in tehran for us. good morning, fred. reporter: good morning, john. it is interesting. the difference between much of the world sees iran and the way iranians see themselves. the national army day here two days ago. the president rouhani held a speech and said iranians believe their military is a stabilizing factor not only for iran but for the entire region. they clearly have a very different point of view of their role here in the middle east. there is the believe it was the iranians who stabilized iraq. this very a better strategy when it comes to fighting isis. they believe the way they are training the shi ite militia is more effective. they also claim that as far as yemen is concerned, the only way they are involved is by trying to send humanitarian aid. they deny sending weapons to yemen. they say the war ships that might be in the region at this point in time they are only carrying out anti-piracy missions. they say they will not take orders from anyone as far as where to place their navy. you do have confrontation on the one hand. you also have the reconciliation on the other hand. we noted the nuclear negotiations continue. there are many people in tehran who are happy with the interim agreement that was reached. many people looking forward to the possible lifting of sanctions. it is interesting of the dual relationship that is evolving. you say, fred despite what is going on off the coast of yemen and the bureau chief of the washington post being held and despite that people inside iran many think you are sitting on the precipice of major change. reporter: absolutely. they do believe that relief of sanctions could be on the way. a lot of them believe the economy would benefit greatly if the sanctions do go away. it is, of course something that puts the power that has beens that the power that has beens that be here that wants the negotiations to move forward and you have a lot of hard liners in the country who felt iran should have walked away a long time ago. it is very difficult for the politicians here in the country to balance all of that and make all sides happy. that is one of the reasons you are seeing rhetoric coming from iran. the iranians saying they would never allow inspections in military sites. it is something the government has knowledgeacknowledged. they say they have to keep in mind what the hard liners in the country think. as far as the washington post bureau chief said i pressed the vice president of the country on that issue. she told me that it is out of the hands of politicians at this point. this is not necessarily the position of the government but is there the process going forward and it is monitored closely and many people are very concerned. fascinating the government would not own that part of the story. frederik pleitgen we are lucky to have you inside iran this morning on this big news morning and the relationship with the u.s. and iran. developing overnight, the captain and crew member of the ship that capsized on sunday in the mediterranean have been arrested. as many as 900 people are believed to have died when the ship went down. top leaders met to confront what they are calling a migrant crisis. hundreds of thousands made the journey from north africa. so many need to be rescued. about 3,500 people died at sea last year. let s bring in ben wedeman live in sicily this morning with the latest on the investigation. some 900 people as many as 900 could be dead. reporter: good day, john. this crisis continues unabated. according to the italian coast guard we just spoke to now, yesterday, alone, they rescued 638 migrants in six separate operations. a while ago, we had the opportunity to speak with two medics from the order of malta who were involved in the rescue of the ill-fated ship. one of the medics was telling us about how they were in a dinghy at 1:00 in the morning after it capsized. he described a carpet of dead bodies floating in the sea. among the dead bodies they found two men who were alive. one of them telling them in perfect english that they were now, these two medics were their best friends. that gives you an idea of the difficulty of the operation that s going on here. not only of course when disaster strikes like it did late saturday night, but simply every day on the mediterranean. italian ships, maltese ships and other vessels trying desperately to stop or rescue people who are in dire straits in the mediterranean and trying to flee fighting poverty and isis and a range of nightmares that have led them to come here to hurpeurope. so many pushing into the grave danger. ben wedeman, thank you. new details in what the prosecutors are saying the biggest recruitment case of isis. six men trying to sneak into syria and join isis. two others detained in san diego and four arrested in minneapolis. they were trying to cross into mexico with fake passports and make their way to syria from there. the men were encouraged by a 21-year-old friend who already joined isis in syria. the u.s. attorney in minneapolis says there is no mastermind behind the conspiracy. in today s case the answer is this group of friends is recruiting each other. they are engaged in what we describe as peer-to-peer recruiting. friend to friend brother to brother. we have a terror recruiting problem in minnesota. four of the suspects appeared in court on monday and did not enter a plea. ten minutes after the hour. time for an early start on your money. cristina alesci. green across the board this morning. u.s. stock futures are up. yesterday, the dow climbed 208 points thanks to strong earnings from ibm. many more reporting results today. a big change for google search this morning. its mobile search will now favor mobile friendly sites. a site has to load quickly and be easy to right and adjust to a smaller screen to get better placement if not the site will rank lower. it could be a huge loss for smaller businesses that don t have mobile sites. we know that google tweaks the algorithm. you do a search on your phone and you need 18 swipes down. they are trying to do a better job with mobile. thanks. six officers off the job after a man somehow injured during his arrest died. we have new video that raises more questions into what went so terribly wrong. if your purse is starting to look more like a tissue box. you may be muddling through allergies. try zyrtec® for powerful allergy relief. and zyrtec® is different than claritin®. because it starts working faster on the first day you take it. zyrtec®. muddle no more™ . kellogg s® frosted mini-wheats®. 8 layers of wheat. and one that s sweet. for the adult and kid in all of us. (supergrass alright ) plays throughout kellogg s frosted mini wheats® feed your inner kidult. thanks for calling angie s list. how may i help you? i heard i could call angie s list if i needed work done around my house at a fair price. you heard right, just tell us what you need done and we ll find a top rated provider to take care of it. so i could get a faulty light switch fixed? yup! or have a guy refinish my floors? absolutely! or send someone out to groom my pookie? pookie s what you call your? my dog. yes, we can do that. real help from real people. come see what the new angie s list can do for you. hey, you forgot the milk! that s lactaid®. right. 100% real milk just without the lactose. so you can drink all you want. .with no discomfort? exactly. here, try some. mmm, it is real milk. see? delicious. hoof bump! oh. right here girl, boom! lactaid®. 100% real milk. no discomfort. and for a tasty snack that s 100% real dairy try lactaid® cottage cheese. new protests in baltimore and still no explanation from police about why freddie gray was arrest in the first place or how he suffered a fatal spinal cord injury in custody. the video shows gray being dragged into the police van. six officers involved in the arrest have been suspended during the investigation. the attorney for the family says freddie gray was in perfect health until police chased him and tackled him. the mayor of baltimore promised to get to the bottom of the situation. we are very committed to make sure we get this right. we have had a very challenging history in our city when it comes to trust between the community and police. we have to make sure that this investigation goes forward and it is transparent and we actually have independent eyes that take a look at it. it is too important not to get it right. baltimore has a sorry history of police brutality. and an even sorrier history of a governmental response to police brutality brutality. typically, the police deny deny deny. emotions running high in baltimore. correspondent miguel marquez is there. reporter: john an amazing scene outside the western division of the baltimore police department. few protesters left after the rain storm came through. you can see they are shouting angrily at police who gathered here. the man in the white shirt there, he is community affairs commander melvin russell. he came into the middle of the crowd. hundreds of people here to try to engage them and bring down the level of anger. here is how that turned out. you are asking the wrong person. we think he was okay before he got put in that wagon. why he was in? why are you asking questions i can t answer? how? i don t know. reporter: now just several blocks where freddie gray died. 25 years old. he was complaining about having asthma and not having his inhale inhaler on him. they put him in a wagon and took him in to custody. putting him in leg irons at one point. there was never a point, say police he was injured while he was arrested. by the time he got to the police station somehow his neck was broken. his family s lawyer saying it was nearly severed, the spinal cord. seven days later, he died. the crowd angry and protesting. they don t want to see this happen again. it seems to be, for this tough neighborhood in baltimore, a turning point. john. miguel marquez in baltimore for us. two tulsa deputies reassigned after the fatal shooting of eric harris. robert bates is charged with second degree manslaughter. the two officers that pinned him to the ground resigned. the fbi determined the investigation into the shooting is not warranted. bates is free on bond. later this morning, the jury that convicted dzhokhar tsarnaev in the boston marathon bombing will reconvene for the sentencing phase of the trial. jurors will decide in tsarnaev gets the death penalty or life in prison without parole. some bombing survivors have appealed that tsarnaev be spared the death penalty. they say years of appeals that follow a death sentence would force them to relive the tragedy. the transportation security administration has imposed new rules for screening workers at the airport. these employees will not be allowed to bypass the screenings. they will be reducing the number of access to the secure areas. the rules following a number of security lapses involving guns smuggled on to planes. an egg producing plant in iowa is quarantined after the outbreak of bird flu. more than 5 million hens will have to be killed to stop the disease. this has required governor scott walker to declare a state of emergency. a close call for one of the nba s finest. the warriors trying to go up 2-0 in the nba playoff series. coy wire has the details in the bleacher report next. ic heal oking radiant skin. a good night s sleep. and aveeno®. 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(laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. the beautiful sound of customers making the most of their united flight. power, wi-fi and streaming entertainment. that s. seize the journey friendly. when laquinta.com sends him a ready for you alert the second his room is ready, ya know what salesman alan ames becomes? i think the numbers speak for themselves. i m sold! a selling machine! ready for you alert, only at lq.com. 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn t happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it s a brighter day in detroit. people can see better when they re out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they re not out for long.they re coming back. moms know their family s mouths often need a helping hand. after brushing listerine® total care helps prevent cavities strengthens teeth and restores tooth enamel. it s an easy way to give listerine® total care to the total family. listerine® total care. one bottle, six benefits. power to your mouth™. and for kids starting at age six, listerine® smart rinse delivers extra cavity protection after brushing. these nba playoffs already classic. the pelicans trying so hard to beat the warriors. coy wire has more in the bleacher report. good morning, john. the warriors were 40-2 going into last night s game against new orleans. the pelicans don t care. they will scrap. eric gordon had 23 on the night. pulling the pelicans within one. the klay thompson so pretty. warriors take a 2-0 series lead. the bulls locked horns. bucks john henson plows over and pushing and shoving ensues. refs doled out seven technical fouls and one ejection. then it turned into the jimmy butler show. notching a playoff career high 31. bulls win, 91-82 and a 2-0 series lead. in baseball the cubs and pirates game. check the fan behind home plate. she gets hit in the head by the castro foul ball. there is a net behind home plate, but there is give to it. she was taken away on a stretcher and sent to the hospital. pirates said she was conscious and alert. that is good news to hear. hope she s okay. reds manager bryan price had the case of the mondays yesterday. he went off on local reporters for giving off too much information to the opposition. take a listen. i talk to you guys like men. i tell you what the [ bleep ] is going with the team and i tell you what is going on candidly as i can. then i have to [ bleep ] this and read about it on a tweet from our people in here that we don t have a [ bleep ] player? how does that [ bleep ] benefit the reds? doesn t [ bleep ] benefit us one bit and then you [ bleep ] blow it all over the place? price reportedly dropped the f-bomb 77 times. his reds have lost seven of eight. he had reason to be frustrated. john, is this up there with dennis green as one of the greatest coaching rants of all time? it is pretty good. he has a bit of a potty mouth there. i m waiting for the video to surface. it is not funny. coy wire thanks so much. 26 minutes after the hour. the u.s. sending war ships to yemen with a warning for iran. face-to-face u.s. vessels are at odds with iranian war ships. implications ahead. 100% real milk just without the lactose. so, no discomfort? exactly. try some. mmm, it is real milk. lactaid®. 100% real milk. no discomfort. introducing new downy fresh protect, it s like deodorant for your clothes. just toss it in with detergent and like deodorant, it neutralizes odors on the spot so your clothes smell great all day. new downy fresh protect, wash in the wow who. is this?! hi, i am heinz new mustard. hi na na na na she s just jealous because you have better taste. whatever. hey. keep your chin up. for years, heinz ketchup has been with the wrong mustard. well, not anymore. introducing heinz new better tasting yellow mustard. mmm! why do we do it? 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[program: not on my watch. ] see? [program: not on my watch. ] [laughing] [laughing] where do they come up with this stuff?! a warning to iran. u.s. war shipping patrolling the waters near yemen. iran meanwhile flexing its military muscle the same time brokers a deal with the united states. this this relationship is complicated. we have live team coverage ahead. the death toll rising this morning in the migrant disaster in the mediterranean. crew members from the capsized ship have been arrested. we re live. mounting questions rising anger over the death of a man mysteriously injured during his arrest. six police officers now off the job. we have new details ahead. welcome back to early start. i m john berman. christine romans is morning. there a new hot zone that puts u.s. assets in conflict with iran. war ships are patrolling the coast of yemen there to block the iranian vessels from delivering arms to rebels inside yemen. iranian backed houthis is backed by the u.s. and saudi arabia. the commander of the iran navy said we don t let anyone give us warnings and threats. our senior correspondent nick paton walsh is monitoring the developments for us. reporter: john so much more at stake day by day in the waters around yemen and skies above it. the u.s. saying it will send aircraft carrier uss theodore roosevelt roosevelt and uss normandy. iran is suspected to have nine ships in the area who may be carrying weapons that may be bound for yemen. does that mean the u.s. tries to block their path or certainly this is at least a show of force. it is of course in response to the united nations security council resolution imposing an arms blockade on the houthis in yemen. it could provide a mandate if the u.s. wants to stop the ships in its path. i think this is more about escalation of the rhetoric in the area. we are seeing a war now, the end of which is hard to define at this stage. civilians caught on the ground. over 40 killed in one air strike. the saudis and coalition continuing in the air campaign which the u.s. is backing with intelligence and now maritime fire power now. could there be a ground invasion? so much key because the saudis are the ones attacking from the skies. that could plunge the region in a trouble some area. it is one piece of the puzzle in the relationship with the united states and iran. nick paton walsh live in london. the officials believe this is evidence of a larger effort to spread more violence in the middle east. a senior member of the iran parliament added yemen to the list when he said sanaa is the fourth capital to fall in our hands. in addition the bureau chief in tehran being held nine months. at last we know the charges he faces, the washington post here in the united states deem ludicrous. all of that going on as the nuclear negotiations continue. let s go straight to correspondent frederik pleitgen live in tehran this morning. good morning, fred. reporter: good morning, john. so much going on in u.s. iranian relations. especially the part of yemen. the iranians are saying the ships in the area by no means want to go to the yemeni coast. they are there fighting piracy. they say iranians are doing that under international regulations. they have criticized the operation going on over yemen. especially the saudi involvement. they accused the saudis of genocide. the interesting thing of the rhetoric of tehran, when we talk about the expansion here they see it as stabilizing the region. i was at national armed forces day parade a couple of days ago in tehran. rouhani said this was a stabilizing factor for the country. they see that for the influence in iran and lebanon and influence in syria. it is heavily criticized by countries around the world. to them that is all something they say stabilizes the region. at the same time they are continuously on a confrontation course with the u.s. in places like yemen and at odds with the u.s. as how to best fight isis in iraq as well with iranians say they believe they are doing the right thing by training kurdish mailitiamilitias. all of this comes while the negotiations about the nuclear program, possible final deal going into the hot phase where the parties are going to join each other today to start technical talks. as far as the iranians are concerned, fred, the nuclear negotiations are separate from the almost face-to-face conflict off yemen and separate from the correspondent held in prison for nine months now. we appear to have lost fred pleitgen in tehran. we will check back in with him in a little bit. developing overnight, the captain and crew member in the ship that sank in the mediterranean on sunday accused of human trafficking. as many as 900 migrants are believed to have died when the fishing vessel they were packed into capsized. top leaders are calling this a migrant crisis. hundreds of thousands have made the dangerous journey from north africa to europe. so many need to be rescued along the way. i want to bring in senior international correspondent ben wedeman live in sicily. ben, what is the latest on the investigation this morning? reporter: as you mentioned, the italian police arrested two of the 28 survivors of the ill-fated ship. one apparently was the tunesian captain. the other was a syrian deck hand of sort. they are questioned. as far as beyond that it s not all together clear at this point how this ship capsized. one u.n. official saying it was caused because a portuguese merchant vessel got too close and caused a big wave and therefore, it capsized. we spoke to two medics from the order of malta who were at the scene shortly after the ship went down. they believe it was caused by many of the passengers we they saw this approaching ship going to one side and causing it to capsize. these two medics told us that they were out on the ocean at 1:00 a.m. in the dark in a dinghy looking for bodies. they described what they saw as a carpet of bodies bobbing in the area. they thought they were all dead. as they went in to recover some of the bodies they heard one man shouting for help. they brought him on board. another man, they saw, floating with his head up and eyes open. they couldn t tell if he was dead or alive when they reached to pull him out of the water and he grabbed their hands and they brought him in. it sounded like a hellish scene on the water early sunday morning when that ship went down. john. ben wedeman for us in sicily. this problem only getting worse as people forced out of their countries into dangerous situations. new details this morning. what federal prosecutors are calling the biggest isis recruitment case in the united states. six men, somali americans, aged 19 to 21, conspireing to sneak into syria and join isis. four arrested in minneapolis and two detained in san diego. they were traveling with fake passports on their way to mexico. they were encouraged by a 21-year-old friend who already joined isis in syria. the u.s. attorney said there was no mastermind behind the conspiracy. in today s case the group of friends is recruiting each other. they are engaged in what we describe as peer-to-peer recruiting. front to friend brother to brother. we have terror recruiting problem in minnesota. terror recruiting problem in minnesota. four of the suspect ass appeared in court on monday. time for an early start on your money. cristina alesci. stocks are up around the world this morning. asia and europe and u.s. stock futures positive. yesterday, the dow climbed 208 points thanks to strong earnings from big players. a lot more to consider today. we have to see how the market reacts. another story for you, john which airline do you think has the worst customer satisfaction? all of the above. exactly. seriously. ranked dead last spirit airlines. spirit is known for cheap tickets, but extra fees from just about everything. to carry-ons to water. another option close to the bottom. frontier. jetblue claimed the top spot followed by southwest. customer satisfaction hit a 20-year high. everything is relative. 19 years of misery. the seats keep getting smaller. luckily. 20 minutes until the hour. six officers suspended after a man mysteriously injured during his arrest and died. the community is demanding answers this morning as the new video surfaces. we will break it down for you next. guys, it s just the two of you. the setting is just right. but here s the thing, about half of men over 40 have some degree of erectile dysfunction. well, viagra helps guys with ed get and keep an erection. and you only take it when you need it. ask your doctor if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain; it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach and abnormal vision. to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. stop taking viagra and call your doctor right away if you experience a sudden decrease or loss in vision or hearing. ask your doctor about viagra. the american dream is terrifying. american history is the history of the scary thing being the exact thing we have to do. cross that ocean. walk on that moon. sign a 30-year mortgage on a home. scary sure, but no match for our colossal self belief. we re supposed to do scary. without scary, we don t get to be brave. thank you for being a sailor, and my daddy. thank you mom, for protecting my future. thank you for being my hero and my dad. military families are thankful for many things. the legacy of usaa auto insurance could be one of them. our world-class service earned usaa the top spot in a study of the most recommended large companies in america. if you re current or former military or their family, see if you re eligible to get an auto insurance quote. are you so congested. it feels like that brick s on your face? 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[cars honking] and one day soon we ll see the last one ever. cisco is building the internet of everything for connected cities today, that will confine the traffic jam to yesterday. cisco. .tomorrow starts here. new protests in baltimore and still no explanation from police about why freddie gray was arrested in the first place and how he ended up suffering a fatal spinal cord injury in custody. police in baltimore released the new video of gray being dragged into the police van. six officers involved in the arrest have been suspended during the investigation. the attorney for the family said freddie gray was in perfect health until police chased and tackled him. the mayor of baltimore says she will get to the bottom of the investigation. we are committed to making sure we get this right. we have a very challenging history in our city when it comes to trust with the community and police. we have to make sure this investigation goes forward, that it s transparent and we have independent eyes take a look at it. baltimore has a sorry history of police brutality and an even sorrier history in terms of governmental response to police brutality. typically the police deny deny deny no matter what the facts are. emotions are running high in baltimore right now. senior correspondent miguel marquez is there. reporter: john an amazing scene outside here in the western division of the baltimore police department. few protesters are left after the rain storm came through here. they are still shouting angrily at police who are still gathered here. the man in the white shirt, community affairs leader melvin russell came into the crowd, to engage the crowd and bring down the level of anger. you are asking the wrong person. totally think he was okay before he got put in that wagon. why are you asking me questions i can t answer? why wasn t he pulled? i don t know. reporter: now several blocks from here where freddie gray died. 25 years old when he was arrested by police. witnesses say he was complaining about having asthma and not having his inhaler on him. they put him in a wagon and took him into custody. putting him in leg irons at one point. there was never a point, say police where he was injured while he was arrested. by the time he got to the police station, somehow his neck was broken. his family s lawyer saying it was nearly severed, the spinal cord. seven days later, he died. this crowd now angry protesting that black lives matter. they don t want to see this happen again. it seems to be, at least for this tough neighborhood in baltimore, a turning point. john. miguel marquez for us in baltimore. thanks. later this morning, the jury that convicted dzhokhar tsarnaev in the boston marathon bombing will reconvene for the sentencing phase. jurors will decide if he gets life in prison without parole or the death penalty. some surviveors say years of appeals would force them to relive the painful tragedy again. and new details about the condition of bobbi kristina brown. her grandmother cissy houston says in a statement, the 22-year-old daughter of the late whitney houston is no long near a er longer in a medically induced coma. her father said that bobbi kristina was awake and he felt she was watching him. hillary clinton on the record about republican attacks against her. we will tell you what she is saying and where next. you forgot the milk! that s lactaid®. right. 100% real milk just without the lactose. so, no discomfort? exactly. try some. mmm, it is real milk. lactaid®. 100% real milk. no discomfort. happening today, hillary clinton and her campaign swing through new hampshire. her first as an official candidate. she has a visit to a community college this morning. on monday she was sticking with the small scale tone of her campaign. so far, she was discussing issues of head start and social security. at the same time she addressed attacks. some say new revelations coming out about her in a new book. our political correspondent brianna keilar has more. reporter: john good morning. in a brief session with reporters here in keene, new hampshire, hillary clinton addressed the upcoming book that alleges pay-to-play between the clinton foundation and foreign countries while she was secretary of state. she says it bailoils down to politic politics. it is political season and we are faced with distraction and attacks. i m ready for that. i know that comes with the territory. it is i think, worth noting that the republicans seem to be talking only about me. i don t know what they d talk about if i weren t in the race. reporter: clinton campaign aides are sharp about the rhetoric clinton cash. her campaign chairman says it is cherry picked information. and she is here and she put distance between herself with president obama and the economy. she said small businesses need to get back growing and she says the economy has stalled out. thanks brianna keilar in new hampshire. a big food scare from overnight. things you want to look at in your refrigerator and freezer. we will tell you all about it next. room is ready, ya know what he becomes? great proposal! let stalk more over golf. great. how about over tennis? even better. a game changer! the ready for you alert, only at laquinta.com. who. is this?! hi, i am heinz new mustard. hi na na na na she s just jealous because you have better taste. whatever. hey. keep your chin up. for years, heinz ketchup has been with the wrong mustard. well, not anymore. introducing heinz new better tasting yellow mustard. mmm! headache? motrin helps you be an unstoppable, let s-rock-this-concert- like-it s-1999 kind of mom. when pain tries to stop you, there s motrin. motrin works fast to stop pain where it starts. make it happen with new motrin liquid gels. success starts with the right connections. introducing miracle-gro liquafeed universal feeder. turn any hose connection into a clever feeding system for a well-fed garden. miracle-gro. life starts here. the beautiful sound of customers making the most of their united flight. power, wi-fi and streaming entertainment. that s. seize the journey friendly. storm s coming. there goes my satellite signal. get xfinity. it s perfect for rainy days. you can just pull up your shows, curl up in a duvet maybe even draw up a bath and see where the night takes you. that sounds real nice. time for an early start on your money. cristina alesci is here with that. u.s. futures are solidly up this morning. it has been a great start to the week. yesterday, the dow climbed 208 points thanks to earnings from morgan stanley and ibm. verizon and chipotle and yahoo! reporting results. burrito bowl sale notice midwest. ever since hillary. a negative food story. a scare announced overnight. blue bell ice cream issued a voluntary recall for the potentially deadly listeria bacteria. it can be dangerous for young children and pregnant women. kraft is making big changes to the mac & cheese. john starting next january, kraft will remove artificial preservatives. the company will use spices. parents want healthy simple food for their children. kraft says it will taste the same. it better. kraft, listen up. i don t know what tumeric is. thanks. the u.s. sending war ships now on patrol off the coast of yemen. this is really a warning to iran. a tense situation. new day starts now. u.s. navy warships in and around the coast. prepared to accept any iranian arm shipments to the shiite rebels. air power alone is not the decisive factor. we have terror recruiting problem in minnesota. the men knew they were on the fbi s radar. you cannot afford this kind of recruitment to happen. the worst disaster involving migrants crossing from northern africa to europe. more than 1,500 people have died so far this year alone. police have arrested two of the 27 survivors. pulling all of its products off store shelves. we are heartbroken over this situation. and apologize to all of our loyal blue bell fans and customers. this is new day with chris cuomo, alisyn camerota and michaela pereira. up first this morning american warships a fleet are heading to the waters off yemen. the u.s. believes iran is sending arms to houthi rebels in yemen. they are sending in this show of force to say don t do it. but what happens if those ships continue and defy the americans? is this going to be the first possibility of conflict in the situation? this comes of course at a sensitive time with iran. ongoing nuclear negotiations set to resume tomorrow. and at the same time iran is charging a the washington post reporter with espionage, a move the u.s. strongly condemns. we begin our team coverage with cnn foreign affairs correspondent elise labott. reporter: that s right. that crisis in yemen taking a new turn this morning as u.s. warships joining other nations off the coast of yemen in a rapidly escalating situation. the obama
welcome to worldwide exchange. i m ross westgate. and i m kelly evans. these are your headlines from around the world. beijing steps up social spending in its latest budget in the bid to boost living standards and build out china s domestic economy. europe agrees to an anti-money laundering audit of its banks. but the finance minister says the originalin borders on racism. for us, a depositor is a depositor. it does not matter where they come from. a 10% decline in car registrations in february over-shadowed the auto show in geneva. plus, hammer jeanie showcases the 4.5 million that is a cool looking car. standard chartered sets this dividend on the back of pretax profit earnings. announcer: you re watching worldwide exchange, bringing you business news from around the globe. february pmi, 47.9. 47.3 was the flash. it s still lower than the 48.6 in january but the pick up from the flash, the employment index 46.5, 46.3 was the flash. the final composite pmi, 47.9. both germany and france contributed to the higher revision. 53.3 to a little better. france is a little better, but it s still deeply in contraction at 43.137. spain actually got worse. 44.7. that was worse than we were looking for. 45.5. and italy, also. so, you know, if there s any growth, it doesn t really matter. bit of a problem, that. could do with a little bit of growth. it s interesting because we ve seen this pattern where risk on/risk off, is it giving away to a dollar on/dollar off trade? if you look at what happened yesterday, it wasn t a consistent theme. we have spanish ten-year yield holding okay. i think there s we re still searching for the new regime. what s the new regime for it? it s a coalition part-time. we have part-time correlation. part-time correlation. that s what we ve got. so on today s show, we re talking about that. we ll be speaking to some of the biggest names in the auto industry at the geneva auto show. carmakers unveiling their latest models. we ll be in brussels. david cameron s relationship there in the spotlight. and the reserve bank of australia kept interest rates on hold at 3%, fighting an improved global economic outlook. we ll speak to the prudent i can t tellal ceo who says the market is improving upon optimism on the u.s. economy and ongoing supply. new car registrations in germany plunged 10% year on year in february, signaling slowing consumer spending. this is gm s vice chairman steven gursky defended its decision to keep its european union opal, saying that the firm is beginning to make progress and to think that you don t have to be in europe is naive. our man on the road if he geneva motor show is steve. let s move straight into those comments from steve gursky previously. it is an operation, of course, that people many times have said why are they continuing with the opal operation? it s a hard market share to try and make any headway and europe is producing too many cars and weak demand, as well. let s speak to steve gushgky, vees president of gm. let s talk about gm s commitment first and foremost to opal. you re trying to turn this one around, but you re doing it against a back drop which is devastating, as far as i can see. we know the environment is difficult. europe is among the most sophisticated car consumers in the world. and we feel like we re going to be able to win here and win globally. we should be able to make money with this. you re being squeezed by the premium brands on one side, the value brands on the other. you ve got 26 new brands coming out. how are you going to fight back with these models? the way we win is pay attention to the customer. we have great new products. our products win award. we have a brand new convertible here which is dynamite. we re pretty excited about this stuff. carl thomas, you re the man who has to take over this european operation and continue working with the customers, with the management teams you ve got in place and with the unions, as well. and it s the latter point that at the moment, if you have to cut costs aggressively, which you do to compete, how is that relationship with the unions going to last? because do you need to do what you did stateside and basically cut a lot of capacity. we did have a lot of achievements in the last year in volvo, britain and germany. we have an agreement now how to go forward with all the locations in germany. but the most important point is the product. we are launching four premiers here and the product will make the difference. it will make the difference. but the overcapacity in europe is staggering. i read a statistic. i think it was 83% of usage in 2007. we didn t have a crisis then, by the way. now we have a 75% usage. there is still massive amounts of overcapacity. why not do what gm did in the states and cut, cut, cut aggressively? well, i think we are cutting, but also we re trying to fill the factories. so we re entering into a new segment. we re entering with 90,000 autos already. we created a new segment for small suv and our adam is a beautiful lifestyle car. it s part of an all new segment. we did announce that we are not going to be producing cars after 16. so we are taking care of some capacity. we ve talked about producing non-opal branded product in our plants here, so we are addressing our capacity issues and we re addressing our cost issues. do you know morrey sailor? i ve read his comments. i m sure you know him, as well. why is he wrong, then? he s been having a pop at french workers, hasn t he? why is he wrong about european workers? it s about productivity. cost is one piece of the equation, quality and another piece of the kwakz. in our german facilities, we get good called yeah and good productivity. again, i say it s the product. what else could you want? let s talk about financials. i said a couple stats off camera and you are swift to come down on me there. you ve said it s going to be break even by 2015. that s not quite correct. is it? we said we re going to be break even by mid decade. that s the plan, that s the goal. sales are still being in 2013 after 2012 which was the worst year for 17 years for european automotive, as well. do things get worse before they get better? actually, i don t think so and i don t hope so because we were able to grow in eve r europe with recommendivety to the market. and as i said, with entering the new segment, that can make the difference. how far are you from where you want to be having got yourself back on track from the events of 2009? how far is gm away from where it used to be? well, the u.s. is doing great. our china operations are doing great. latin america is improving. we know we still have more to do. our profit margins are the where the best in class are. but we have a plan to get there. at the corporate level and indeed at a consumer level, do you think the events we re seeing at capitol hill, the lack of progress and the stumbling we re doing, one sequester to the next, do you think that is preventing companies like yourself and the consumer at the end of the day from buying products? i think uncertainty is never good for the consumer. we re seeing a lot more places here and in italy where you have significant kwern with regard to recovery. but so far so well, the economy seems to be doing recently well. i had one coo on earlier who said what s going on in italy? they ve pulled the rug out from under our feet. we are strong in germany. germany i think is doing a little better. same is true for britain and also are we going into new market like russia and turkey, emerging markets. guys, we have to leave it there. thank you so much for your time. i really appreciate it. thomas and steve, we re on the opal stand. we ll speak to carlos gohsn in a few moments time. what we re asking is what car model or feature are you most excited about v. the lamborghini, i could that be yourself? i didn t know this, all the car name res named after spanish bullfighters. yeah, of course. gave us a heads up about that. not the bullfighters, the bulls. oh, the bulls themselves. yeah. it took 24 staffs, tough guy, that one. oh, wow. it doesn t even look like a car. it looks tech logical batmanesque. i think i d have trouble getting in and out of that, one, as well. yeah. i think i ll stick with the bus. moving on, beijing says it s ready to deliver boost in spending of 7.5% this year. wen jiabao stresses it s important to keep the economy on its toes. china is looking at fiscal deficit of over $190 billion this year, or about 2% of gdp. we know says china is aiming for a cpi increase of 3.35%. eunice is covering this for us and joins us now from beijing. which one are people seizing on most? people are seizing on that 3.5% target that he was looking at for the broad money supply, as well. so it s an indication in the government year is going to be more aggressive about innation. people have been focusing on that number on the budget deficit that is it is going to look bigger. but it s still 2% of gdp, which some economists here say isn t too alarming and especially if you look at the breakdown of how they re spending the money. it looks as though the government wants to allocation money monies to the health care system and it looks as though they re putting their money where their mouth is in order to try and make sure they address some of the important issues that premeem wen jiabao had talked about this morning at the opening ceremony. most leaders take a look at what happened in the past year and lay out the goals for the coming year. this time today, premier wen jiabao recently defended his record but also talked about some of those challenges ahead, especially some of the social issues. this is what he told the delegates who were there. we are facing many problems. the economic development is increasingly in conflict with resource conservation and environmental protection. the development gap between urban and rural areas and between regions is large. so are income disparity between individuals. social security, medical care, housing, the environment, food and drug safety, workplace safety and public order affect people s interests. some people still lead hard lives. there many systemic and constitutional obstacles developing in a trvrmational. the some areas are prone to correction. another number was the military increase in the budget. the chinese have decided to increase their military budget by 10.7%. now, this number is less of a rise than the previous year and the year before that. but it still is double digit growth. that is concern among the region as well as with the folks back in washington. guys. eunice, thanks very much for that. italy sparking a lot of chatter on the social media website, as well, about whether they re doing enough on human rights. the latest data shows pmi fell last month. there is also swelling in india s service sector as the services pmi came in at 54.2 in february down from 57.5 the month before. analysts say there s still, as well. it s stilly a bright spot in its economy. ross. meanwhile, here we are, an hour and 15 minutes into the trading day. there s a lot of green on european stocks. only about 25 stocks in negative territory. the ftse and 1100 yesterday was down 0.5%. right now, we re up nearly 11%, 6,403. banks, resources doing particularly well today. so despite continuing negative news, these markets wants to keep line up. xetra dax 1.6%. the ibex up 1.4%. even the ftse mib up around 2%, 300 points higher. gilt yields backing up, steady at 4.74. ten-year spanish yields, 5.03% is where we stand. so just still under that 27, 26 basis point spread which we hit. currency markets, that friday low was 1.2966. dollar/yen, still in the range between 9 0 and 1933. reserve bank of australia kept rates down. the aussie the priced in a slim change. that is where we are right now in this european trade. let s recap what happened in asia today. sixuan joins us for the first time today. hi, sixuan. thank you, ross. asian markets reclaimed some of yesterday s loss round ending in the green. the shanghai composite rebounded from a two-month low. banking shares made of combat as striking fears began to ease. this after outgoing premier wen jiabao said china will increase its fiscalpending to keep growth at 7%. she could then gain 11.5% after the lender which is controlled by hsbc holdings reported a better than expected 15% rise in its 2012 profits. in japan, the reflationary xwraut further momentum as the leadership gets under way at theback of japan. the nikkei end dollars modest. unipost posteded a nearly 10% year on year jump and domestic sales elsewhere last month. south korean chipmakers helped the kospi in the green, but only marginally. in aus trail yab asx s 200 finished stronger by a 3% with banks and retailers leading the rally following retail and export data. india s sensex still in action now trading higher by 1 is.3%. back to you. okay. sib want, thank you very much for that. still today on cnbc.com, china s demand for resources might be volatile. wine they can t get enough of. why out why one sessy group thinks the trend will continue. there was considerable doubt of when the pay plan will be implemented into law. more details on our website on that, as well. and president hugo chavez stems down and it could create volatility in global equity markets. is that the up or down side from current levels? cnbc.com for more. ross. . and still to come on the show, the future of china s growth lies in the wallets of its consumers, according to our next guest. see you in a few moments. [ male announcer ] ah. retirement. sit back, relax, pull out the paper and what? another article that says investors could lose tens of thousands of dollars in hidden fees on their 401(k)s?! seriously? seriously. you don t believe it? search it. 401(k) hidden fees. then go to e-trade and roll over your old 401(k)s to a new e-trade retirement account. we have every type of retirement account. none of them charge annual fees and all of them offer low cost investments. why? because we re not your typical wall street firm that s why. so you keep more of your money. e-trade. leor us. more for you. . welcome back to the program. china s we know jaw boy set out a program which places consumers at the heart of the country s economic future. joining us now is lucas phillipo chief economist at natixis. nice to see you again. were you surprised to see such strong focus on consumers here in this outgoing speech? surprised? no. i was more surprised by the action than the words. let me be clear. so basically, there has been this montra about increasing consumer spending and consumer contribution to gdp growth in china for many years. but it s mostly been words. and apart from increasing minimum wages to where no real measures to make this happen, to make the contribution of consumption, of private consumption to decrease over increasing gdp in china. two or three days ago, some new curbs on real estate, all these are measured factuality and actual measures that are going to have an impact on consumption. so i am surprised by the action. i m positively surprised about the action. words, we have been listening to them for five years and nothing happened until today. following your point about property curbs are going to help bolster broadly speaking consumer push chasing power in the years ahead. you ask any chinese why they are saving so much. one of the reason is the absence of social security, especially for private sector employees. but the other reason is that they have to secure a home for their family. house price ves increased so much that the effort that is required in saves money for purchasing one home is significant. many, many years of next. so if you are able to curb house prices, if you are able to give, really, affordable houses to young chinese, then young chinese will consume more. this is what they should do because young people consume more of their income. this is what should happen and this is what we lack in these prices are curbed by policy china. i guess then the question becomes whether or not these measures don t sound like they re necessarily a game changer will be successful in that regard. really, how much is you re talking about very fundamental, the sense that the chinese have to save in order to have a home for their families down the road. will the chinese, then, do you think become much more aggressive to help change attitudes here? kelly, this is gist a drop in the ocean, basically. this is the beginning, but this is action. then, of course, also the plan that was announced three weeks ago is just the beginning. because this cole cope and the breath of the plan is not yet enough to reduce significantly come the income distribution inequality. so more action will follow. i m not saying that you just curb prices. i m just saying that house purchase and the worries about the continuing increase in house prices was one of the main factor of consumption, of savings on the young people. especially in the cities, especially in the large cities in china. and so this is just encouraging news. one reason. i know you ve mentioned these growth targets will be telling. time will tell. thanks so much. a number of earnings out we ll focus on today. standard chartered shares posting higher. the company showing an increase in full year profit. it raised its dividend and said it s still a good start this year. it hiked its dividend more than 10%, 8 cents a share. standard chartered reported a drop of 7% in the bonus pool to reflect performance as well as the impact of legal settlement in the united states. shares in dhl rising. it s eecting an improvement after posting better than expected q4 results. taxes were up 38%. speaking earlier on cnbc, the ceo says he sees continued strength in demand at home and abroad. definitely asia has helped us. but also the business in germany has continued to grow very, very strong. joef all, we have seen the same trends as we have seen in the previous quarters. so it s all intact and we don t expect any major change for those trends in 2013. all right. we just got uk services pmi about to come out, as well, at the moment in the uk. kelly, you ve got a oh, my wait a minute. february services pmi, 51.8el, the highest in september. i thought that 67.6 figure was the headlines. no. that was the expectation. 51.8 versus 51.5 in january. better than the poll of 51. take the two together because we saw the manufacturing pmi down and construction pmis were weaker than we might have thought. they point to 0.1% growth in the uk economy in the fist quarter. this is according to chris william son in the market. the expect ages pmi, 56.6 in february, the high since may last year. that is a good upturn. the services side in the bulk of the economy in the uk, britain has held up extraordinarily well. you didn t guess irnd say relative to what we ve seep in the economy. granted it s the employment figures which continue to hold up okay, so despite the fact that headline gdp is weak, despite the fact that they re aimed at spurring exports, aimed at spurring investments, we re still get ago very consumer services spending direction. if a lot of is that spending is happening because it s on necessity webs framp, if the food and the retailers are holding up okay, health care is holding up okay, but it s not gang busters. and it s interesting to see how the weather had an impact on the other issues. when you are saw the manufacturing and construction numbers, this number may just make a pause on thursday. we ll see. sterling is certainly stronger on the news. look at that, back over 151. we have seep it dip below 1.50 in the last week or so ago. so more reaction on that to come. also still to come, britain let s set for an early fight against eu s cap on bankerses bonuses pep. we ll be live from brussels when we come back. don t go anywhere. these are the headlines from around the grocery. beijing sets up social spending in its latest budget in a bid to boost living standard and build out china s domestic economy. bank bonuses top the agenda in brussels. the irish finance minister saying there s little scope to accommodate the demands. a 10% decline in car registrations in february over-shadows the auto show in geneva. and standard chartered shares rising after the bank raises its dividend on the back of ten-straight year of record earnings with a profit of $6.9 billion. plenty more to come from the motor show. steve is down there. european stocks having a good day. we were down 0.5% for the ftse yesterday. up 0.8% this morning. being outshown by the zex ra dax. let s see if the same thing is true across the bond space. for the most part, yes, we are seeing things following in spain and italy. look at that 5.03. will this be the day that spain falls below 5%? that spread is still holding at about 38 basis points for now. and on the currency markets, euro/dollar, firmer today as you might expect. 1.3065. we hit that sort of low last week on friday. 1 is.2966. the three-month low. sterling/dollar is slightly strong, as well, held up by better than expected services pmi which we just received some six minutes or so ago. dollar/yen, 0.9377. european finance ministers have agreed to push for a bailout for cypress. to get the cash through, the country s newly elected government agreed to an independent audit of its banking system to make sure it comply wes international laws on money laundering. cypress s finance minister wouldn t be drawn on which officials pushed hardest for the you a udit. for us, a depositor is a depositor. nt does not matter where they came from. they have deposited their money into our banking system and they should have treated with respect. it would border racism to begin distinguishing developmenters by ethnic origin. those comments followed a secret meeting at the time of finance ministers where we son learned what exactly they were discussing. the negotiations look pretty contentious. some are pushing for a restructuring and that is something the government wants ruled out. there is no way we can entertain the idea of any kind of air cut to any kind of deposit. that is our firm position and we have communicated that. we have said that we believe that this woor r woor would be an accident in the eurozone not caused by markets, but a self-inflicted wound, a self-inflicted ka taft pea. joining us for more from broguel is mr. philips. how unusual was it to have this secret meeting last night? you ve heard some of these comments now from the minister. he says there s no way we could entertain any kind of haircut on any kind of deposit. what happens now? i think secret meetings are quite frequent. i mean, in the substance, i do think that there would be a case for a haircut in the deposits because if something is guaranteed more than that, it shouldn t be the taxpayer who foot s the bill. the trouble, though, i guess is we have to find some way of lowering the total size of cypress s debt burden. what are the other options to do so. if they don t go for larger of bank critters and very large depositors, then indeed, the size of the bailout has to be very high to push the public opportunity ratio at a very high level which may risk availability. so i do think it would be necessary for cypress. what are the implications for the other programs in europe and future bailouts or bail-ins? i mean, the tendency now that there will be more bailing in the future and you can look at what happened in ireland. in ireland, they wanted to protect each individual bondholder of banks. as a consequence, the irish government accumulated 40% of gdp debt just from the failing bank which clearly pushed the debt to gdp ratio to a very high level. i think that was a mistake. so euro group ministers requested by ireland and portugal for more time to affect their bailouts. meanwhile, officials say italy s political dead lock wasn t even discussed, talking to cnbc after the meeting, the french finance minister insisted he wasn t worried about the situation in italy. i am not kshd about the impact on the eurozone of the situation in italy. i m convinced that this country, as you just said and they also know how to face political crises. but what i am concerned about is what is the meaning or the reason for this vote? clearly, it shows that it is a vote anti-crisis, that the people of europe, of course, they accept the idea of physical consolidation and they also want hope, prospective consolidation and growth. all eyes will be on the federal chairman and osbourn is expected to call for a flexible bonus cap to protect the city. but he won t be able to block the proposal from becoming a european law if most member states vote in favor. if the chancellor fails to secure a watered down agreement, lopped s big banks could reportedly considering suing the eu over the pay cap. the fnlt times have report they have received advice that the new laws could be struck down in court because of a treaty that forbids regulating pay in member states. i want to get your view on this bonus cap. how do you think it s going to pay out when we get to the final law? i wonder what you think about that legal challenge. now, the bonus cap which caps the bonus at a percent of salary would not be a regulation. and if you ve seen by lawyers in the commission and i think they are right, it s a kind of macro prudential measure because in good times, banksers take a huge bonus. in that time, the taxpayers have to bail out the banks. so i think there will be internet case for capping bank bon bonuses. thanks for that. moving on now to australia where the central bank has kept its main cash rate hit a record low of 3% today. are the low rates giving consumers confidence to open their purses? as expected, the reserve bank of australia left things unchanged at 3% and kept its easing bias in place. kwlen stevens pointed to signs on of stabilization and in the u.s. and said it was pruitt to hold lakety. we saw it just there. that s the biggest increase in seven months which essentially shows confidence is improving. on the easing bus, it was all about inflation. saying the noninflation outlook would have forced scope to ease further if there is an aging in demand. analysts are looking for a further cut in rates later on this year. we ve got gdp numbers out tomorrow, the consensus sitting at 2% in q4. the bank of japan leadership nominations are out and now it s time for the candidates to step into the limelights. today was the turn of the department governor. the deflation fight is gaining momentum in japan as we move through a leadership transition of the central bank. the government s nominees for the new government and his policies are set to be uprotered by the president. the largest opposition democratic party of japan has decided to approve the nomination of kuroda. the deputy governor comeny hudashi nakasoul and the director of the okay. i think we have an issue there. thanks for that. we ll take a short break. still to come, we ll speak to the ceo of renault nissan about his vehicles and in his only words, why the u.s. market has been really bad last year. if you looked at the spanish market, it s drop a million cars in five years from 1.7 to 700,000. the italian markets dropped a misdemeanor cars in the same period. i was having trouble getting out of bed in the morning because my back hurt so bad. the sleep number bed conforms to you. i wake up in the morning with no back pain. do you toss and turn? 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and meanwhile, i hear clowns are upset with steinbrueck in germany. just a couple of days ago and brought to our attention this morning, german clowns are insulted to be compared to berlusconi. no one is happy. great prime minister antoinis samaras put a frail discussion on hold yesterday as he shook hands and pledged to double trade coming up in the innocence three years. samaras said recent disputes between the neighboring countries have included a battle over hydro carbons last month. now, the u.s. and china have reportedly reached a tentative agreement to put north korea for last month s nuclear test. u.n. diplomates say they hope to have a draft resolution and a vote t matter by the end of the week. no word yet on what the punitive move may be or whether dennis rodman has weighed in on them. the new york times says the senate permanent committee on investigations could ask a former cfo and other senior executive toes testify at a hearing later this month. the panel report is due out on the ides of march, march 15th. he s not the focus of separate probes into the trading loss. is there a sort of music, is there ides of march music? if not, we can create some. citigroup cio michael corbatt makes his first presentation today since taking the job. analyst expect him to focus on near term financial goals and cutting costs and not a new long-term strategy. he may also address concerns about how he plan toes wind down the city holdings unit which has been a drag on earnings. citi stop stock up 2%. banks having a pretty good day. and let s take a look at what s on the agenda in asia. a new central bank meeting. dozens of them this week, it seems. in australia, rising resource exporter could make a difference when fourth quarter gdp is released. key earnings to watch out for out of hopping congress, the mainland s largest property developer, soho china along with ck life services. meanwhile, european markets having a having good day. the ftse 100 is off 1 is%. today it s up 0.75%. the ftse mib today up nearly 2%. as far as the bonds are concerned. we ve still got that narrow split between spain and italy. yep. but we are seeing italy fall in line, 4.76%. 5.04% for spain. that s what we re watching. does it go below 5? and renault nissan says the market for cars in europe was pretty bad or really bad in january or february. let s get back out to the motor show. steve is there is geneva. yeah, thanks, ross. it was a mixed performance from renault in january. it did outperform the wider market declines. still a decline of 6.1%. let s speak to the man in charge of renault and renault nissan more broadly. carlos, very nice to see you today, sir. thank you. of all the estimates for 201 i m reading at the moment, you re up until now the most optimistic i ve seen. opal is in the region of 3% decline for 2013. are you sticking with that for europe? yeah. it is true that we have been a little bit surprised, negatively surprised by the fact that january and february the market has been very disappointing with the minus 9%. we don t think that it s going to continue at this level. we still see the overall year 2013 as tough and in decline, but we don t think that the magnitude is going to continue throughout the years. but, you know tell us, what is it that you re seeing that a lot of the pundits can t see about the optimism. it s the worst last year last year in 17 years. it was the worst january i think since 1990, since the reference began. what are you seeing that they re not? look, i think that a lot of uncertainty that usually you see in europe is being removed. i remind you that one year ago or 1 1/2 years ago the questioning if the euro was going to stay or not. today it s up. people are questioning if spain, italy, greece are going the stay in the european community. today, there is no more of this discussion. people who are discussing about are the internal production deficit are going be executed. are the governments going to be serious about it? well, they are serious about it and therefore, seeing troubles. in a certain way, i m not saying the situation is good. but what i m saying is we re seeing action taking place at the level of the different government in order to get europe out. .a lot of agreements with competitiveness being signed. spain has signed a lot of agreement. france is signing a lot of agreement. so we re seeing a lot of construction taking place. that makes me a little bit herein lie tess problem and you ll be aware of this because of your japanese car sales, as well. if governments put stimulus in in whatever shape or form. when stimulus is drawn away, that demand is going to be there for a certain amount of time, anyway. as we re seeing in japan, with your sales which are falling a little bit, as well, nissan, remains if stimulus is taken out. car sales fall off a cliff almost. stimulus is not here to create additional demand. stimulus is here at the moment where you need it the most. you don t get your prize. you have time to prepare for when stimulus is removed, you are ready to face it. so i don t think anybody thinks stimulus is going to create something out of the box. but it allows you to decide where you re going to come from. tell me what the big problem is in europe. is it demand or supply? the lack of demand is also very empowering because of what we re seeing. we just discussed in terms of austerities. the overcapacity still or positive on inspect. no. i think the biggest problem in europe is the demand. the number one problem in europe is the fact that the demand is shrinking has shrunk in 2012 by 8% and continued to be on the same trend in 2013. the capacity is the problem. there is a second and third level of magnitude. what about workers, the workers rights, as well? we know what the ceo thinks about workers. flexible pay, shorter, longer working hours and a more international working environment, how successful is that? look, you know, france is our home country. we have a lot of in france. so we are engaged and we are discussing with the government, with the unions not only so they do what strike at the level of the nation to make it more competitive, but also to make sure that the level remains in france, our operation in france are competitive. this is not about the next six months or the next one year. this is about the mid and the long-term of our ability. so, yet, i think the only way you can get something fixed is through a consensus, is through a common effort. obviously, a few more questions. one more question is about you and your remuneration. you ve taken a deferred payment, 30 3ers of your salary to 2016, as well. do you think it s right that european politicians are more and more getting involved in private sector pay? i think the only way you re going to get the politician out is to get the bottom line solution which is make the shareholders vote on the pay. when the smar holders will vote it s nothing for the french government the government can always interfe interfere. the government can just say, look, you re at and they can t do anything. that s fine. but in terms of fixing, the ceo, it should be the people that are paying for it, shareholders. why is this the great car for the future? because in one car you have three cars, you have an suv, a sedan and an sev. exciting. very exciting. carlos gohsn, ceo of renault nissan. the great rival is peugeot citron and we ll be speaking to the ceo of that company coming up on closing aboing bell. steve, thanks so much. we ll be back. we re going to head out to beijing, as well, with the government pledges to boost spending in order to meet its target of 757% growth this year. can it be done? welcome to worldwide exchange. i m kelly evans. and i m ross westgate. beijing steps up spending and build out china s domestic economy. better than expected growth for britain s financial services sector in february. the pmi shows the fastest expansion in five months. that s pushed the pound higher against the dollar. a 10% drop in german car registrations in germany over-shadowing the start of the geneva motor show. plus, hammer gooelg gelam lambo new vehicle. and the earnings for standard chartered, $6.9 billion. . . retail sales out of the uk, up 2% on the month. down minus 1.3% on the year. that s much stronger than the plus 0.3% we were forecasting. it s the largest month since april 2011. the rise in nonfood sales arched since november 20011. here is the kicker on this. they may be flatted by new base year. so theme reconfigure d the base. at least there s some strength there that we re not picking up in manufacturing or construction. but i want to pick up with what s happening as we start to turn our attention to the u.s. session today. take a look at this, the dow jones industrial average which is taking futures into account. 14,153. the nominal high is 14,164, i believe. so we re talking about being within ten or 11 points. currently taking out those nominal highs. let me emphasize nominal because on real terms we would still be below those records from 2011. nevertheless, expect a lot of market attention on this one today. let s take a look at what s been happening overnight. it has been a strong session across the globe and that should offering momentum as trade gets under way. that often sets some of the declines that we saw yesterday in what was more of a risk off attitude. certainly across europe, trade was mixed. but today it s up with the ftse, atting 0.75%. the xetra dax hitting 1.7%. the cac 40 up 1.7%. 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 s losses closed in the green. in china, the latest daetd from hsbc show services pmi fell to 52.1. analysts say the drop is mostly due to beijing s clamp down on spending and can distortions from the lunar new year holidays. the shanghai composite rebounded over 2% from a two-month low. banking shares made a strong comeback as tightening fears began to ease. beijing extended a pilot program and loud two more banks to start fund management businesses. the hang seng finished marginally in the green. the hang seng bank gained 1.5% london support to the index after the lender reported a better than expected 15% rise in its 2012 profits. still it journd performed its parent company hsbc which fell below these results. in japan, the nikkei 225 closed at its 4 1/2 year high bolstered again by hopes of aggressive easing. the nominee for boj deputy governor said it s possible to hit inflation target of 2% in two years. retailing shares jumped 5.5% today after its clothing chain posted a nearly 0% year a year jump in same-store sales last no. elsewhere, south korea s kospi ended higher by 0.2% with technology stocks leading the gaens. in australia, retail companies helped to lift the asx 200 higher by 1.3% after posting the strongest january sales growth in six years. india s sensex just shut shop ending 11.3% higher. thanks, sixuan. outgoing premier wen jiabao expressed it s important to keep the economy on an even keel. consumers replaced the heart of the cup s economic future. with the very latest on the national people s congress, eunice rejoins us from beijing. eunice, it sounds like china is trying to go the way of america circca 1995? well, that s right. it looks as though the government is trying to build a better social safety net. we saw that in how the new budget is being allocated. there s much more spending on health care as well as education and even cleaning up the environment. i don t know that you can see right now, but it s pretty polluted, especially here in beijing. now, what the government has outlined is what you had suggested, the it reaffirmed the economic growth target. one thing people have been latching on to here is the fact that the government lowered the inflation target from 4% to 3.5%. and while doing that, they also lowered the broad money supply target from 14% to 13%. and that combination is leading a lot of economists here to believe that the government is going to act preemptively this year in order to reign in inflation. one of the things he told the 3,000 delegates listening to him today translator: we are facing many problems. the economic development is increasingly in conflict with resource copser vacation and environmental protection. the development gap between urban and rural areas and between regions is large and so are income disparities between individuals. social problems have increased markedly and many problems in the areas of education employment, social security, medical care, housing, the environment, food and drug safety, workplace safety and public order affect people s interests. some people still lead hard lives. there are many systemic and institutional obstacles to developing in a scientific way. the transformation of government functions has not been carried out. and some areas are prone to corruption. now, another number people are focused on was the military spending. china has increased the military spending by 10.7%. this sounds like a very large number. it is. it s double digit growth. but at the same time, it is still less than what we saw last year and the year before. so the chinese authorities here have been actually quite frustrated saying that they feel they can tly had to explain themselves and that any spending they say is for peaceful purposes. nevertheless, the greater double digit number res sure to innerve the folks here in china as well as the united states. eunice from ra very smoggy bay ying, thank you very much.the. earnings season is wrapping up in the u.s. and europe. what does that mean? christy, before we get into earnings, per se, you know, equity markets can t get knocked. morning, ross. there s still a lot of risk appetite. well, the risk appetite, it s interesting how that risk appetite has been emerging in the last three months. we ve got less than 20 business days to go to the end of this quarter. was it four or five years ago that the bank of england lowered rates for the first time? that s four years ago. the policymakers started the process of saying, markets need to recognize that we re now on side to deal with the situation. we ve gone into these crisis phases late 2007, 2008, the lehman issue, everything. nobody believes that we can go up from here. warren buffett, i m sure, will be referring to it again. it s been four years for this rally and there s a lot of people coming through at the end of the first quarter 2013 not having participated very much in that process. absolutely. so the idea of risk on/risk off is we re getting back to a normal relationship between taking investment risk for return which is not measurable danger. the real risks we ve faced t have been those external risks. what is there s a collapse? these are the externallty risks whether it s a flight to quality unrisk. so this is exactly what we were talking about off the top of the show, which is if you look at a trading session like yesterday s, it wasn t a strong risk on/risk off core late trade. commodities were weaker. how do you as kind of a fund manager figure out where and how markets are moving on a day-to-day basis? 30% of the euro stoxx 600 is still in ways stocks. and so, therefore, the headline index going sideways, sterling is going down as much as it s been about people being receipt sent about chasing that early stage momentum of january when we saw the whole market on a tear. so the currency issue is an important one depending on where your own benchmarks are. ultimately, it s the dollar earnings the folks have been focused on saying this is a fact that if it s sustained, it s important. currencies are an important overlay. from a strategy point of view, i think the market is not overextended from a value perspective. and we want to get into a couple of those specific names, too. chris will stay with us and we ll have more in just a bit. u.s. carmakers have their foot on the gas. what s their destination in europe? 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[ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i d get half. what s in your wallet? you are watching worldwide exchange. beijing steps up social spending as it looks to build out china s domestic economy. uk services pmi jumped in january beating expectations and showing the fastest expansion in five months. chattered heights dips dividends on the back of its tenth successive record year of earnings. shares in glencore and xstrata trading higher today. the groups reported a full year drop in profits. it matched analyst expectations. could be the last time the two companies report results separately before their merge her. glencore saw its net income down 7.5% after booking impairment charges stemming from the reclassification of its stake. it boosted a big drop in profits because of impairment net income almost 08% lower in 2012. christine is still with us. i don t know what you think of these guys individually or the money sector. it s interesting. the mining sector, these numbers have come in, as your headlines suggest, in line with market expectations. the market has been very quick to punish people that disappoint expectations. in reality, when you come in with what you were saying you were going to be doing, we know the all merger situation, we re going to go into that strange situation of organic growth. people have been stripping out the bid to try and understand what s going on for a few courses yet. the mining sector started to look good from a value perspective to us. i think what s coming out of the news, coming out of china is relevant in this regard. he think we re seeing the negative story. i think the rebalancing from an economic standpoint, again, has been well flagged. we shouldn t be sort of panicking. tomorrow s expectations change around quarterly gdp figures. we should be seeing this is the progressive economy in a different direction. then you ve got those opportunities like the sell off in relth in terms of the chinese housing market. those are opportunities in sectors like resources where the opportunities are still strong, still improving and to that extent, you know, this news flow gives the opportunities i think to get engaged rather than worry about them. okay. chris, stick around. we ll take a short pause. we re going to get to a beak, as well. i think we re going to talk about autos. we ve got introduces coming up. i also want to draw people s attention to what we re seeing. dow jones industrial average adding 40 points. we re just about 10 points away from taking out those nominal highs. carfirmation. only hertz gives you a carfirmation. hey, this is challenger. i ll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it s just another way you ll be traveling at the spef hertz. europe s struggling auto sectors continue to weigh on u.s. automakers such as general motors and ford. gm is reportedly tackling its european woes by utilizing excess capacity at its oakland plants to produce chevrolet, the company s biggest global brand, traditionally associated with the american market. steve is in geneva with more for us. susan is joining us now. really lovely to get you today to talk to us about what you guys are doing to reinvigorate your european traffic. you, like a lot of the brands here, are seeing sales in the u.s. picking up globally. ite once again, it s europe that s the problem. it s a very challenging market right here in europe. and i think one of the things you have to do in a challenging market is to look for opportunities. so what we re going to do at chevrolet is continue with our product defensive. we re going to introduce five new products here in western and central europe in the 2013 calendar year. one of them is the brand new chevrolet track, which is a small suv. that s in a segment that s going to grow in double digits throughout the rest of the calendar year. tough market. you look for the opportunities and you try and exploit them. we ve got this car over here. look at this car over here. this is the convertible. this is a brand new car. tell us all about this and you re launching this today in geneva, aren t you? yes. this morning, we introduced the world premother of the chevrolet corvette sting ray convertible. this is an incredible machine and it represents the full of our country. this is about brand and putting new products on the market this year. not only in europe, but globally, as well. what about the cost of production? that s a major issue for gm and for a lot of the european futures. do you think you have the right kind of cost structure at the moment? right now we re sourcing products from both the united states, like corvette, camaro, and then we source some products from korea ya. you have to get the manufacturing equipment right, but you have to make sure you have the right credibility, quality and durability. for chevrolet, we want to represent good value for the money for the consumers. at the moment, we think we re okay from that standpoint. what about the sales picture? your sales in january fell over 30% in january. there s a reason for that. and i m very interested if you can share with consumers why they fell so aggressively. yeah. our business was down for the first month of the calendar year. there is reason for that. when you re involved in the challenging market where there s a lot of price competition, a lot of money being spent on incentives, we decided that it was more prudent for us as a brand that s on a growth pattern to focus on the retail portion of the market. this is very similar to the same play we did in the united states when we faced the global economic crisis, which was to back away from daily rental, back away from some fleet which tends to be quite costly and focus on the retail consumers. so i m the most not surprised to see our business down in january and february, but it s prudent in terms of trying to protect profit and margins. do you think that the european car industry is doing something very, very badly wrong here and not reducing capacity as aggressively as you went through yourself and you re involved in the whole situation in 2008, 2009 and 2010, as well? and the brutal sizing of the business there, sizing of costs, europe doesn t appear willing to take those same kind of bold measures. well, a comment that i would make to your viewers because i think this is important, both the united states and europe both face the same challenge with respect to overpa pasoverc but the solutions were different. in the united states, you ended up with two very big players, one of them being ourselves went through bankruptcy and restructured our company. but without a single event to be the catalyst for that, it s going to take a lot longer. sales were pretty good at the start of the year. what is the strategy there? our strategy for china is to continue with growth, growth, growth, and it s going to be fueled by great brands and continuing to introduce new products quarter after quarter after quarter. susan, i understand you watch cnbc and cnbc global anyway, so that s fantastic, as well. i do. you re a fan of ours and we re a fan of yours, thank you. thanks very much for your time. let me hand you back to the studio. interesting. steve, thanks very much for that. one of the questions they re asking is what car model feature are you most excited about? e-mail us, worldwide@cnbc.com. tweet us, as well. surprise us. involve your market moving thoughts. what we want to do is focus attention briefly on what s happening with the dow jones industrial average. futures at this point is up by 43 points, 14.154 is the level. that means we are just 10 points away from open from taking tout nominal highs, 14,164 hit in october 2007. the nominal intraday high was closer to the 14,200 level. but you can expect you should brace yourself for a lot of headlines if/when we punch through this one today. yeah. so the u.s. equity market is continuing to attract investors for returns, as well. it s equity secured close of more than $10 billion in february signaling the strongest stops on record. this according to reents blackrock data. as we approach those all-time highs, as well, chris is still with us. you, were you in new york the last time we hit that target? yeah. when i dow hit that level, happens to be in new york at the time and you couldn t move for tv anchors getting terribly excited about it. are you suggesting that we tend to hype these things, chris? no, not at all. is there any real significance? the reality was when you hit those highs, there was prices already building within the system, there were concerns starting to arise about what was going on in the criticism. the market was getting weary about why we re seeing these highs when there are accidents ahead. i think the different now is the market is saying we put sequester to one side, we put corporate earnings. the market got a much more positive tone towards it. if not today, it will be tomorrow and then it becomes less of an issue. just want to ask for a briefly reality check for the enthusiasm today that we re talking about. where do you not see value here? what stocks don t you like? well, i think in terms of the global markets in particular, where we ve seen a real struggle for value to appear has been in utility. based stocks. we re seeing rotations into those only because they ve been relative laggards. so we would say, if you see a squeeze up, when you see these things come up, if you own them, these aren t reasons to chase it, these are reasons to step back. on the flip side, insurance stocks, banking stocks, the insurance stocks we re getting out of those and they re now coming back to value. this is in a market environment where markets are going higher generally. take your time, invest in what you want to own. but when you get pulled back, buy the stuff you like. and you re saying get cyclical, not the opposite. we remain of the view that there is a cyclical recovery going on. we re seeing it come through at a macro level. and actually, you just want to buy stocks that you trust they re going to be able to deliver is the bottom line. particularly in most of the financial sector in the last two to three quarters. and there s a difference in hsbc and standard chartered. hsbc dealing with one issue that standard chartered didn t have to deal with. they re paying you dif dens. banks paying dividends again. that s good news for the last four years when we weren t getting in, banks giving you the dividend holdings, those people coming out of fixed income, saying security and dividend yield coming in equity market, that s a transitional shift that isn t going to be just a quarterly phenomenon. good. thanks for that. still to come on the program the u.s. housing market appears to be on its way to recovery. new home sales prices round ud out with the biggest annual gain in more than six years later year. we ll check in on both commercial and residential property skters next. but, of course, we want to leave you with a look at how futures are trading ahead of the open. that 41-point gains puts the dow at 12 points away. welcome back to worldwide exchange. i m kelly evans. and i m ross westgate. here are your headlines from around the world. beijing steps up social spending in a bid to boost living standards. better than expected growth for britain s services sector in january. shows the fastest expansion in five months, pushed the pound to a session high against the dollar. a 10% drop in car registrations in january over-shadowing the start of the again ne geneva motor show as it showcases that $4.5 million renault. you re watching worldwide exchange, bringing you business news from around the globe. all right, people, brace yourself because you ll hear a lot about this guy today. dow jones still average is at level 1.42 at the moment. why is that significant? we re about 4 points away taking today s move of futures into account from breaching or reaching or passing through the nominal record highs set back in october 2007. so it s taken what is that, 5 1/2 years for us to climb back up here, but we are close and given the move we ve seen in markets overnight, it s possible we could reach this level if not hold there today. take a look at what has been happening overnight, broadly higher on the cnbc ftse 100. markets are surging after yesterday s sell-off. the ftse in britain adding almost 0.8% shy of that 6,400 level. the xetra dax is not usually a major mover, adding 1.6% approximated other markets, same thing. cac 40 in paris adding 1.4%. the ftse in italy is up almost 2%. how should you play these markets? here is what our guests have been telling us all morning. gilt as an asset should continue to benefit from external investment from over a overseas investment into the market. that would typically be in short trend of the yield curve. we think those lows will keep coming. so the nooetd need for the bank of england is not obvious. after what was a relatively sleep july luxury goods stock and then it goes a little too expensive and it s come back where it was. but it s still a great company selling an enormous amount of product. but it s just not growing as fast. whereas google and amazon are, these could double their earnings which is why they have these much, much higher multiples. people are probably a big too bearish on china. having said that, the risk now is having worried china was too cold back in september, now people are worried about overeating and worried about interest rate hikes and property measures on friday night. so i think the miners do look attractive, the valuations look attractive. i think they haven t kept up with quantity prices. they keep an eye on for quantity tight.ing in china. fannie mae and freddie mac s regulators will create a new venture. it s a move towards shrinking the role in the market. the faa says congress will ultimately decide how the venture will work and whether it will be privatized. fannie and is freddie currently help finance about two-thirds of all mortgages. since their bailout, they ve drawn nearly 198 billion in u.s. treasury to help stay afloat. joining us now, allen smith ceo of prudential real estate investors. welcome. thank you. glad to have you here in london. glat glad to be here. we were talking yesterday about the london property market which is its own especially in central london the staggering amount of money that s coming into it. but in the u.s. we re seeing signs of a rebound, certainly perhaps with fannie/freddie news pointing again towards the strength of the private market. i think what it illustrates is the same themes you see driving the london market or driving the u.s. market in terms of investor behavior. investors around the world in real estate have been seeking a quest for yield and security. and so the best properties in the best markets are seeing tremendous demand. and i think the other thing to keep in mind is relative to their fixed income alternatives, property offers very compelling returns right now. how is the u.s. commercial property there s always a relative gain, positions relative to other opportunities around the globe. well, i think the thing that the u.s. offers is a perception, a, it continues to be perceived as a safe haven. two is relative to other developed markets, the economy is growing at a steady pace. not a robust pace, but a steady pace. and so i think people look at that relative to europe it looks relatively attractive. so i think in that sense it continues to attract capital. the other thing is, while the economy isn t growing in a terribly strong fashion, there s no new construction right now. and so it s supply and demand fundamentals for real estate continue to improve progressively. what are the opportunities at the moment? what sectors of commercial property market? is it more sectors than it s some of both. in terms of if you look at geography, the strongest markets have been what we would consider to be the gateway markets, new york, san francisco, boston, etcetera. the sectors that have been most compelling would probably be up until this point the apartment sector, where because of the fallen home ownership, because of demographics, up until this point. and i think one of the things we are looking for is when there will be a turn in that. because, in truth, house sg more affordable today in the u.s. than it s been in almost any time in the post war period. but you re saying at this point that the argument for investing in apartments because of those demographic factors and otherwise is ending and it s time to maybe shift back. what do you think is the best way to play the real estate sector generally right now? i would say with respect to the apartment sector, which has been a favored sector of institutional investors, our view has gone from bullish to balanced. it s still an interesting sector, but it s not nearly the opportunity it was several years ago. i think most people are trying to figure out, similar to the great rotation you were talking about earlier, how do they begin to take more risks? how do they position themselves in, say been the office sector, the industrial warehouse sector. how big is the appetite? i think it s one of those things that people are trying to figure out how to take more risks, but they lack conviction as to where to do it. so the markets like new york, tech central markets, seattle, washington, those markets tend to attract a lot of attention. how much real can you get for what risk, right? exactly. thank you for now, allen, ceo of potential real estate investors the. still around, how big of a golden parachute are we talking about? gold bars. stay tuned. [ kitt ] you know what s impressive? a talking car. but i ll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it s carrying, while using less fuel. delivering whatever the world needs, when it needs it. after all, what s the point of talking if you don t have something important to say? you are watching worldwide exchange. on our website, chinese demand for u.s. natural resources may be waning, but there s one product they can t get enough of wine. why one aussie group thinks the tlend will continue. and swiss voters may have overwhelmingly backed pay restrictions, but there s considerable doubt over when the plan will be implemented into law and whether it will be watered down. plus, the prospect of snap elections in venezuela, if president hugeo chavez steps down after its cancer surgery, it could mean more volatility for markets. there s more on that story on the website. there was a standardout day in europe. doej pretty well. up 2.7% on the london market. notching up its tenth cop secretaryive year of record annual profits. had a profit increase in 2012 just below expectations. they had to get over those big fines for breaking sanctions on iran, counseling strong growth in asia, but people taking it out have looked through it and they talked about a big pick up, as well, in consumer growth, the growth story. investors are looking and comparing what we refer to as standard chartered with hsbc. the other big asian play in london listed banks saying, maybe standard chartered is the one to get on there. their return investment looks better than hsbc. loan growth looks pretty good, as well. and the bank is confident in its statement this morning saying, we re starting the year with strong momentum in both businesses, pretty confident about the year ahead, as well, all of which leads investors happy to take the stock up nearly 52-week highs, up 34 percent in the last month. if you re just joining us, these are your headlines, pay jing is stepping up social spending as it looks to build up china s economy. and oougs services pmi jumps in february, beating expectation toes show the fastest expansion in five months. and here is a look at today s other top stories. a senate panel may fault some in jpmorgan for allowing the company to build betts without fully warning regulators and investors. the senate committee on investigations could ask the former ceo and other execs so testify next month. company shares there up about 0.6% in frankfurt. that is significantly underperforming the market on a day like today. maurtha stewart is expected o take the stand today in a dispute between j this penny s and macy s. macy claims jcpenney are honing in on a big risk. bj penny dropped 3% on the reward. both shares are one of the investors comes from there. michael corbatt will speak at noon eastern time. analysts expect corbat to focus on near term financial goals and is cutting costs and not necessarily a new long-term strategy. he may address concerns about how he plans to wind down citi holdlings. take a look at shares up 1.57%. that is roughly in line with the market today. meanwhile, william johnson could be in line with a big golden parachute if he s asking to. johnson could heavy $26 million. heinz says that reflects his success in building shareholder value of his 15% ceo. and swiss bank adagelin has been ordered to pay $6.2 million on a tax evasion case. the u.s. government accused the company of conspireing to help taxpayers hide $1.2 billion in secret swiss banking accounts. wegelin pleaded guilty in january. the company has been on the rocks. can see kelly, this drys a line earn a very, very big chatter. it signal off u.s. offshore clients, even after it knew ubs was being investigated. but wegelin simply thought it could continue in that vein and make monies from those u.s. offshore clients even though it was illegal. what happens to wegelin now? we knew wegelin had already sold off most of its assets to a regional bank last year. we know wegelin is planning to shutd down its bank and brands prior to that plea deal. yeah. because it s very, very unusual for the department of justice to invite a foreign bang. it s named after one of the strongest, most aggressive fighting bulls ever. are lamborghini waving their white flag at the moment? uh, i m in a timeout because apparently riding the dog like it s a small horse is frowned upon in this establishment! luckily though, ya know, i conceal this bad boy underneath my blanket just so i can get on e-trade. check my investment portfolio, research stocks. wait, why are you taking. oh, i see.solitary. just a man and his thoughts. and a smartphone. with an e-trade app. nobody knows. [ male announcer ] e-trade. investing unleashed. lamborghini is marking its 50th anniversary with its fastest ever super car. it looks a little bit like the bat mobile. if you re joining us from geneva is our rojin sedgwick. i don t get into the tights any more, ross. age has caught up with me. let s get excavate to stephane finkerman. i ll show the shot and we ll show the car, as well. stefan, thank you very much. this is pronounced bernania. this is a spanish bull for the 1940s. this is an extraordinary car. talk us through that and we can talk about other issues later. it s a one off. it s a very limited edition. this is giving us a higher degree in design freedom. you can test new materials and technology. you have a positive cascade effect on the rest of the product lineup and it s fulfilling dreams, at least for sh people. now, our u.s. audience will be very pleased to know that two of the cars out of the three which you produced are going to the u.s. one to the middle east, as well. you re not going to name any names of who bought this, are you? no, i m not going to do it. two in the u.s. and one into the middle east. tell us about the positive effect it has on the rest of the business, as well. it s the 50th anniversary edition, three cars produced. what about the state of the business elsewhere? how are things? things are pretty good. we had an up of 30% in the year 2012. we had a good distribution over the region, so we had more than 70% sold outside europe. and so we have a balance between the americas, euro and asia pacific. the big success is mainly due to our coup. it s a record year in terms of v-12 sales. for lamborghini, we ve never done so many b-12s in the entire life of lamborghini, so it was a very good year. mclaren, very important for them to keep the numbers down in terms of production. keeping it around about 200 because it s about the quantity, about the uniqueness of the cars. car industry last year was and 65 million sold. we sold 2,083. this is nothing compared to the 65. we want always to produce less than demand. but if you produce 1,000, 2,000, 3,000, 4,000, in terms of the visibility around the world, this is not making any difference. stefan, about the broader industry in europe, we come into that geneva battery shows, we re dog to talk about potential will i broad experience. is there anything that the luxury end of the market can teach the broad mass consumer mekt, as well? whereas across the board we have real proximate with the peugeot et of this world. one of the things issues is that they have to go global. without global, it s difficult to be successful. and the other thing is to take care of budget cuts. this is what these two things going global, having as much energy as possible, and taking care of the customers, this is valid for all around the world and for all the brands. stef yap, thank you very much indeed for your time. and his pet here, the person neen ya. a lot of executives in europe have facing the color guards. it is it is right at the moment. we can start reclaiming the ground against politicians. maybe we ll play that out later on in the show. steve, just the three of them, then. so if you and who are the other two? jeffrey and karen. we ve already penciled you in for one of those p-1s. okay. i like that. good stuff. steve, thanks for that. plenty more on the website from the geneva motor show, as well, cnbc.com. we had been asking people what the viewers they would like, cars, and the answer is that one. the 60 in under three seconds. although elbridge from florida said she would like to see the new bmw series. we ll work on it. squawk box is coming up next. there s only one way to find out. stay tuned. hey, this is challenger. i ll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it s just another way you ll be traveling at the spef hertz.