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This is a little bit more but I want to take.
A look at all the latest news coming out of Europe update all of you at home -- what's been going on you've got Italy moving closer.
To a national unity government with former European commissioner Mario Monti emerging as the favorite.
To replace outgoing prime minister Silvio Berlusconi.
-- weren't angry she got former European Central Bank -- -- president Lucas -- -- -- he's gonna head Greece's new crisis coalition.
That is expected he's expected to be sworn in tomorrow -- he -- on that and then the European Central Bank is saying don't look to United States policy makers.
Pressuring European governments to act saying the ECB cannot intervene much more aggressively.
To tackle the eurozone debt crisis a wanna show how all of this affecting world markets today and it hasn't been all about.
Frankly just about Europe and in in this and affecting Asian markets as well.
A let me give you a couple of shots are what's happening over on in the world just a couple of -- -- -- got to go through here but here is Asia or you Hong Kong Tokyo and Sydney those.
A market's trading in the red falling of course US markets which -- yesterday we saw that we covered it for you.
The name of the New York it's a mixed bag and this is adjusting for the first time -- -- a divergence.
Between the German market and the French and the London markets Germany it eking out a gain but Paris and of course London as well.
Both -- traveling down as you can see here particularly cac forty a losing point 33%.
But again big story today which is interest -- Looks pretty -- into this you know -- it is better roller coaster.
Why -- in you say basically that US investors are trapped we're trapped by Europe what is you mean by that.
Well we don't have any influence over them as the ECB kind of called out and said you know pay no attention to people across the pond very.
But besides that we seem to react to news that doesn't have a whole lot of structural issues to it.
You know we're -- that markets are up ostensibly today.
Because there's been a management change at the top of Italy and Greece but we don't know what those managers are going to DO.
And how they're going to solve their economic problems so you know -- couple hundred points up today on the Dow.
We were negative yesterday whenever.
There's indecision there.
And I don't know that all of our companies you know have all that much business to deal.
In Europe I mean that certainly isn't where growth is coming from so it just feels as if the market is trapped by news that has little relevance.
Over the day to -- functioning -- American companies.
All right I wanna go about defaults lenders for a moment -- and I want you to cut is a common outlook him as saying -- the US markets are trapped by York you know.
By trade commodities out there Chicago.
That the currencies situation obvious about always affects or gold oil everything trades but she's saying something different.
But it's -- -- -- it's an overall corporate traffic network and with regard steer you agree with that bill.
I feel like I'm trapped in I think she's absolutely right I mean when I look at headline to headline I need.
Look at the market action yesterday I mean we look at not only and Italy which were totally panicked about.
Look in his reasoning if you look at you know what you -- to have a president they don't have a president it's gonna be and hopefully they are -- and know what's it mean this guy.
I mean every time we got a headline dent the market -- so that's greater short term absolutely we're live at that.
In another way she's absolutely right because if they don't get this under control.
Is gonna be a fallout for the rest of the wolf make no mistake about it we thought in the China export numbers this morning that could be just the beginning and aren't obviously.
I exports here in the US -- big exporter to Europe things fall apart -- Gonna hurt our economic rebound as well.
All right let me take that same question that some kind of sentiment -- you ten do you agree because a lot American investors lot of Americans frankly.
This well I don't really care what's happening in Europe why does it affect me -- saying it absolutely affection meaning if you need to pay temple now.
Timing and the US 20% of global GDP you know 77%.
The global population if they start to drop off as far as the global consumer.
Goods and services for the rest the world it's it's.
It's very very bad and of course now you see was happening in France and is used interest rates continue to spike in this country's in debt service become so much more difficult.
You see the likelihood of default even more so and we still don't know how interconnected other banks around the world.
Layoffs with meaning -- holds debt we still know that which is also a bit a very risky proposition well.
But I also want and we do you know Dennis if you look at French banks there that they have the biggest exposure to Italian debts are you wanna see -- sector crater underneath what what is happening in Italy it's gonna be French -- And Twitter is a Twitter with talk today that French.
Credit default swaps -- to blow out because.
This is -- in 2008 a mob of raiders went from bank to bank to bank right Bear Stearns Lehman.
Go Morgan Stanley Goldman troll field and now going from country to country Greece Italy -- next in -- And in France perhaps.
But -- -- are sitting on Italy.
-- careful -- -- -- a column in daily -- -- he pointed out that if they're bond rates go from 4% -- seven and a half percent it's the end of the world the difference in their interest payments on the 320300 million dollars after refinancing your rank is eight.
Billion dollars in a company with a two trillion dollar economy this is not the end of the world we are too afraid let the speculators be afraid.
Long term investors ought to just like take a deep breath and.
But the call -- the same time US investors have been plagued by -- we've seen that all the volatility on the markets day in day out.
In particular US investment banks another story with Goldman and Morgan Stanley may be changing their business models but they're the ones -- also have.
Exposure and are reducing their outlooks.
On Europe absolutely we've seen the banks fluctuate and have -- and more volatility than almost ever before on the moves that we're seeing from Europe but just.
-- to a previous guests points noting and that Europe is very key for some of our companies' names like Abercrombie & Fitch and General Motors both have -- Europe.
In there -- outlooks now over the last week so Abercrombie & Fitch saying their their sales in Europe have been not that good.
General Motors or disposed to break even in -- not going to do so self.
While Europe may not necessarily be -- biggest growth area for some US companies.
It is very.
Scene -- before I let everybody go I do wanna go back to -- I don't wanna leave everybody on a down note let's try and get this positive today can you do have a couple of next.
Both of them play on the emerging market media like Boeing.
You say Boeing is because the developing world but but also with bars are emerging markets joy.
They still mining equipment and China will put on these two -- -- Well at what we think -- that the middle class in the emerging markets are growing and they want things like electricity which is why it.
In directly Joy Global provides because they provide mining machines -- coal.
And then there's Boeing where you know you get enough money or go visit relatives -- -- you know white picket train when you can fly.
And we think that Boeing and Joy Global are uniquely positioned to benefit from that.
Yeah I was on a panel yes and that the whole thing was about emerging markets in and again -- growth population in Africa in Vietnam and so I really like the pixelated -- -- thank you very much can cost you forest fort Pitt capital the -- Phil thank you to both of BO.
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