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The call will -- that here coming out swinging today though ratings firm warning investors and it may downgrade from eurozone countries next year this.
Just more evidence that the deal EU leaders reached on Friday does little to fix the region's problems.
Joining us now with his take on a year of crisis and what it means for financial markets -- -- -- Kumar chief.
Global strategist at TCW welcome back to the show Sri great to see so much we be watching it -- it's.
I think what you should be watching -- is not just whether they European nations that it would do reach under that agreement.
You need an agreement which is -- of what you need an agreement which would cost the economic growth to resume.
I doubt that gave -- one of the -- -- of the crisis meeting we have had in the yet enough cop I've always that sense that it's sad because there was no improvement.
I'm I don't appease opt -- Friday essentially -- this thing this is not going to what type what do you look fought.
You want a reduction in the level of debt which means had cuts and fought many of them well -- it -- in different countries second.
You want the European Central Bank to substantially increase the -- -- tonight.
Which would reduce the value of debt so -- bull case is that could it does -- to get.
-- will be some back not -- stations.
-- have you have that big gave deference to the blood on the street.
I'm dots ready to decide to go and until that happens this would -- the situation is not going to get this -- noted.
Kamal what do you make of the bond auctions later on this week in Spain and Italy we -- situation today with a dollar is significantly higher.
Euro weaker you've got the yields.
In Spain Italy higher today what do you make of these bond auctions and how much -- markets -- -- the globe will be keeping an eye on these later this week.
I think everybody would be looking very closely the fact that both Italian and Spanish needs increased video shot -- early this morning Chris.
-- -- -- -- -- Before -- UCB came in and put system brought the -- doubt about said this to me that in the ECB does not support bit.
Don't -- the auctions are not good to go that.
So what the ECB may well be doing is even though it saves it's not going to make big but this is of bonds.
-- head of these auctions -- typically come in and buy the bonds in the secondary market to bring that yields down and set up a more favorable environment is that happens Chris.
You're talking aboard the auctions going well but that just a temporary phenomenon that you go back into that -- again -- bail -- to America and.
-- so look at your crystal ball here for us and how do you see this unfolding in influencing US markets as you know everybody good news we get a big upswing.
For the US equities markets coming into the new -- some bad news credit ratings agencies in this.
Intense focus on -- bond auctions in Europe we are not showing a lot of optimism on that lot of attention to start off the new -- so where do we go from here.
I think DOD it is that be very difficult to put students on every two week basis I would say that your audience.
Should be watching to see you did a supplement and dissolution in Europe -- point second.
I think you -- there's under the -- session.
I think that decision would extend into the first half of 2000 -- I'm so -- investors should know that if that's the case that contagion is good to come to the United States so I think.
That's going to be that made their fact that leading to a US I ain't gonna be going -- -- -- -- again.
I once that happens you're going to have lots of good I aggressive investment banks not to -- ability statement did stated video -- -- street 22 sell what happens if this payroll tax cut doesn't get extended by the end of the year and of course we know we're dealing with congress almost likely will not.
The extent of what -- it.
Yeah if it doesn't get extended Chris it's -- -- percentage point oh so.
Deep freeze and a disposable income of many income I guess that's good to be one more negative for consumption spending -- -- -- -- pots and.
All right we'll have to leave it there streak to mark thank you so much for time -- insights which -- more optimistic outlook but we appreciate your candor not actually appreciate you -- -- it is.
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