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Cantor Fitzgerald CEO Howard Lutnick on the outlook for the dollar and the European economy and why he considers new technology a great investment.
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When we last joined.
Howard lot -- was betting big on the dollar but over the last few weeks the dollar seen a big drop as investors get -- confident.
Is he keeping his investment or is -- looking at new plays -- get a chance to catch up with Howard in dot us.
Here we are day three of dot -- let's get to investment my next guest owns the strong dollar call.
That is until this week when fed chair Ben Bernanke announced that he would keep rates at record lows.
22014.
A year longer than he originally anticipated.
Does -- -- -- -- Cantor Fitzgerald and BGC partners still believe in a strong US dollar.
And water has often been at she's about to make he joins us now good to see you know it was.
-- -- a strong dollar trade a year ago you were on with that with David Asman and myself and say I love the dollar.
So suddenly the dollar really plummeted to five week low against the Euro after Ben Bernanke came out this -- -- -- two point fourteen well imagine that.
-- -- you'd think he says we have no economy to the middle of 2013.
That's not enough to negotiate we have no economy for the end of fourteen.
So -- those people talking about you know it looks like a little better employment numbers and things feel little better.
Yet the Fed putting a big stamp -- is no real economy grown in the US that's for sure.
Didn't lose money -- -- plummeted did this week where we -- already out so we we covered in -- -- 27 level and now we're back toward 31 and basically what you're gonna see it's gonna bounce right here and that it's time to go long the dollar again it looks like if it's not just Italy it's also Portugal Spain's in trouble.
We know what's happening in Greece could the eurozone crack up -- fall apart or at least pieces break off I think it's just.
It's so cataclysmic.
I mean really if you think about this well what Greece leaves the Euro -- well all of their money.
He's gone every assets going to get.
50% discount but everything Greece -- equity everything it just won't happen in magically spell out what would be next -- what.
-- -- -- Portugal -- like one minute.
So basically they'll never let Greece out.
-- got to come up with a way to firewall at all and by their -- bonds get fiscal control of these countries.
And they've got to put one point five trillion aside.
To buy their own bonds the next three years that's what they've got to finance 1000000000005.
They've got a -- on themselves because they surely can't look at us to buy those bonds have actually picked for point to cover of the dollar 27.
You know it's really all about interest rates so before when they Europe had -- -- -- percent interest rates in the US course of zero interest rates.
You think OK I think the -- to get stronger -- -- -- drag he's going to cut rates when he cuts to 1%.
And you think is he gonna keep going it's gonna stop using Europe.
You know the Germans are very afraid of hyperinflation.
It's gonna go a little slower so he stops time to cover either waited out.
As soon as you think he's gonna start cutting again tried to jump in looking through the what the vision once again aside from the strong dollar eventful strong dollar what other big -- are you making.
Well -- of the US equity market is -- gonna bounce around flat.
European equity market -- kind of bounce around flat so really the only thing that excites people these days.
He still sort of Internet.
Changing the economy -- -- because as it turns out low interest rates create sort of some boring.
Investments in bonds.
The high risk high return.
-- Internet dot com.
Those kind of trades is still very popular -- very interest and I like new technology investing because the returns and the risk.
Are still reasonably balanced otherwise you by corporate bonds of -- -- 3% interest rate.
Yet it -- real risk for no return.
And that's that's not something you do that as we finish up view we -- exploring hired an IPO for your -- entertainment sports betting business.
First of all that gonna happen did we get we filed it so -- we expect it's gonna okay and secondly.
Super -- You're not going this year but -- giants fan I have I have such a giant a -- and it worked out so well as I'm -- burglary.
Rematch of it but you know it's tough call to do it twice last -- -- he was America.
High -- -- make here in Davos.
Talking Super Bowl talking the stronger dollar and talking high technology really driving perhaps part of the economy of this world.
Thank you so much that is really.
Back to you in New York.
