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Imus in the morning.
Good morning everyone JPMorgan Chase CEO Jamie dive -- will go before lawmakers today.
Where he'll be grilled over the bank's two billion dollar trading -- Be prepared testimony for the senate banking committee Dimon says that he believed 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 financial crisis while producing returns and he says -- portfolio did perform as expected during a recent crisis.
But that problems -- rose in mid January as its strategy change ahead of new capital requirements.
And that 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 risks.
By 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 though not by much.
Dow futures are down by sixteen yes -- he's down by about three as as the NASDAQ.
Already -- Italy's borrowing cost jumped this morning the country sold 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 and LR -- London.
We see changing direction there in degree just barely while Paris and Frankfurt are still to the downside -- -- not by much.
Let's take a closer look now what's moving those markets with CMC markets analyst Michael Hewson.
Well we're in London Michael Spanish prime minister Mariano Rajoy defended the bank -- out to Spanish lawmakers today -- everything he had no choice but to accept the money.
Because of the failure of his predecessors and that there.
Diane I mean if you that they use.
This is turning into I bottomless pit in Europe.
You know -- all these banks really need to be wound up in an orderly fashion now completely insolvent.
If they not lending to the real economy and -- got the money to -- the real economy they should be wound up.
But the way things are going at the moment he's trying to -- the -- to the central banks to essentially print more money and have tax plan is -- -- -- -- now.
The bad investment decisions of these banks out.
To a point it's bad but to expect -- -- to pick up the bill you know I think that's -- fought in the EC they have pretty much set that.
And -- Michael on that note about the ECB and he's basically saying.
This European Central Bank needs to do more to help market volatility but the ECB in the past been pretty reluctant to act under political pressure so.
Do you think the bank should be doing right either way I was saying the a Smart move for her life.
I I think what he's trying to do -- in trying to increase pressure on the European Central Bank.
And most of the point he's trying to increase the pressure on the Germans to -- on some form -- banking union but in the end of the tightest closed down so one thing and one thing alive and Germany and bad place in the reluctance to place the pick up the bill for this.
Kind of alignment -- he's trying to be marginalized but they're not the only ones who are reluctant to do this is Finland Holland and Austria.
As well and until such times I -- various is some sold blinking in terms of this discussion we gonna get sick.
We gonna continue to get along more of the sun -- thing.
That's Michael Hewson from CMC markets over London thanks Michael.
-- -- And -- -- to get several pieces of economic data at the bottom of the hour including retail sales for last month.
Sales for May are expected to dip by point 2% from April what should be the first decline in a year if you take out the auto component sales are expected to stay the same.
We'll also get the latest read on producer prices they are expected to fall -- point 6%.
But if you -- about the food and energy component economists expect the core index there to climb by point 2%.
We'll have all those numbers for you as soon as they cross at 8:30 eastern time.
And 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 question.
Said China is -- number one economy the US was a close second with 40%.
But the survey also found that 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 -- -- dancing around a little this morning right now they are still to the downside again common theme not by much.
Oil is around 83 dollars a barrel gold -- down by just eighty cents at 1613 announce coming up this hour Imus is guests will be Senator John McCain of Arizona.
Imus in the morning continues right now on Fox Business giving you end -- -- across the.
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