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Germany Turns Down EU Banking Union

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  • Description

    FBN’s Diane Macedo breaks down the stories moving the markets around the world.

  • Duration 5:14
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This is this Imus in the morning.

On the -- Good morning everyone JPMorgan Chase CEO Jamie Dimon will go before a lawmakers today.

Where he'll be grilled over the bank's two billion dollar trading loss and prepared testimony for the senate banking committee Dimon says that he believes the losses from the bank's chief investment office.

Aren't isolated incident he explains that the portfolio in question was created to hedge the bank's exposure.

Against a larger event like a financial crisis while producing returns diamonds as a portfolio did performance expected during -- recent crisis.

But problems -- rose in mid January as its strategy changed ahead of new capital requirements.

And the portfolio then morphed into something that created new and larger risks -- will also outlined steps the bank is already taking to guard against further risk.

Like creating a new risk committee structure for the chief investment office while adding that the bank expects to see a solid profit in the second quarter which wraps up in two weeks.

Let's take a look at the markets now after yesterday's rally futures here in the US are down across the board.

Dow futures are down by nineteen -- S&P down by three -- the nasdaq's down by five over in Europe Italy's borrowing cost jumped this morning.

The country's -- six point five billion euros worth of one year debt with a yield of three point 97%.

That's up.

From 2.3 four in a previous auction stocks there also to the downside though fairly flat.

-- down by just to Paris is down by six cent Frankfurt's down by 27.

Now let's take a closer look at what's moving those markets -- -- -- -- international's global head of financial markets.

I -- ran up over in London -- Germany's Central Bank has shot down an EU proposal for European banking union.

-- -- on can't share liabilities without a shift toward fiscal and political union do you agree.

I think it -- -- result of something here and that is that they're basically saying.

We have already made up point that we are not in favor of a fiscal union none of these conditions we have out -- -- -- -- don't come to a sort of banking union which is essentially fiscal union.

I think they at least have that point right and that is to banking union can only work if it is a cross -- system.

That very much resembles a fiscal union -- the two are indistinguishable but remember the German reaction -- if it's no no absolutely not yes.

That is why we need to get to woman -- before midnight and then they will locate him but love.

Love that and this Xeon.

Imad -- sort of we have a report saying the -- -- wants to negotiate listening mid terms.

A Greece's bailout is that a Smart move.

-- headlines -- -- -- question -- -- is which eurozone officials the second fully understand that -- in the eurozone as a number of officials that -- We can sit around a table again.

With the Greeks are just wonder if the Germans will be among them and I have my sincere.

Doubts about -- -- -- -- German line here is sorry we made a deal you have to stick to it you can't vote sent the -- into office every time.

And expected to deliver the goods when the Germans now have to pay for them.

And for that matter some other countries in in and in eurozone as well so I'm not quite sure how much to read into this I think -- be very difficult to see very significant renegotiation of favour of the Greeks.

Of course we'll see what the election outcome is this weekend.

All right that's down lamb -- not Yung -- up -- -- -- -- -- sorry -- was confusing you another -- we often have on.

Young -- -- that rabobank over in London thank him.

And we're due to get several pieces of economic data this morning including retail sales for last month.

Sales for -- are expected to dip by point 2% from April.

Which would be the first decline any year now if you take out the auto component sales are expected to stay the -- also get the latest read on producer prices today.

Are expected to fall by point 6%.

If you strip about the -- an energy component though economists expect the core index declined.

By point 2%.

It's a lot of numbers and we'll have them all for you as soon as they cross at 8:30 eastern time.

The insider trading case against former Goldman Sachs director rajat group -- expected to wrap up today the prosecution and -- his lawyers will make closing arguments before the jury begins deliberations.

The defense rested its case yesterday after spending three days trying to prove that the government is pursuing the Rombach.

And that good it was a trusted and valued employee he's accused of among other things leaking -- -- about Berkshire Hathaway's five billion dollar investment in Goldman Sachs.

Now imprisoned hedge fund manager Raj Rajaratnam in 2008.

The US is no longer the top economy and the rest of the world eyes according to a new global survey from the Pew Research Center.

41%.

Of people questioned said China is -- number one economy.

The US was a close second with 40% but the survey also found China's image has grown more negative over the past year.

In the US Japan and parts of Europe.

Here's a look at commodities now oil and -- I've been pretty close to flat just like the markets today right now there both to the downside -- down just about fifteen cents -- 83 dollars a barrel gold is down about three bucks.

At 1611 announced coming up this hour -- -- guests will be Indian viral founder Deirdre Imus.

I least we'll Imus in the morning continues right now on Fox Business.

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