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FBN’s Diane Macedo breaks down the stories moving the markets ahead of the trading day.
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This is very.
Imus in the morning program on the fox -- -- Good morning everyone will get our latest read on the labor market in about thirty minutes -- the release of the weekly initial jobless claims.
354000.
People are estimated to have filed for jobless benefits for the first time last week.
That's up slightly from the prior week but despite that -- The rating would mark the tenth straight week below 400000.
Which -- most economists feel is the level needed to bring down national unemployment.
We'll have that number for you when it crosses at 8:30 eastern time along with a look at last week's number meanwhile markets around the world are under pressure this morning on concerns about global growth.
In China we -- factory activity fall sharply this month.
And they are affecting markets here in the US futures are down by 69 points for the Dow.
Nine points for the S&P endemic fifteen for the NASDAQ -- you're -- weak manufacturing data from Germany and the eurozone.
Is also taking it on the markets retail sales numbers from the UK also fell more than expected markets there you can see are down across the board.
With the Dax down more than triple digits let's take a look at a closer look any -- that what's moving those markets with the Motley -- director David -- Over in London.
Stated we have economic data out of China Germany and the eurozone all impacting the markets today.
Would you of those pieces -- data do you think investors should be most concerned about.
Well I think all three of them Diana going to be very crucial because we're talking about the second the fourth and the fifth largest economies.
We talking about China Germany and of course the Euro -- Now this is absolutely crucial and in the case of China the reason why it is slowing down is because Europe is -- down.
So you can't take a look at one piece of -- and not look at the other piece at the same time.
I mean in the case -- China relies on Europe relies on America to buy the imports -- to have to buy the products that it manufactures.
And they nobody's buying it then of course you get contraction in China.
Then of course you know you have -- -- problem which is unemployment -- unemployment here in the here in the Euro -- is quite high we told you by the 11% unemployment in China it is full percent.
And one of the big problems as what to these economies do now do they just keep on pumping more money into the system because -- they do so that is gonna be inflationary.
And inflation is something that China is very.
Cautious about because.
It knows -- got this overheat said.
Property market in China it doesn't really want to actually stimulate the economy too much because over as we know if you if you pump money into China you know just -- up in the property sector.
-- and David you're talking about large economies and I wonder how much concerned should we have over the smaller economies and we keep hearing that.
Greece is still having trouble with its debts despite having a second bailout that Portugal could need a second bail out soon.
And on the other and -- have Mario -- he's saying the worst of the European debt crisis is over so how concerned should we be about these things.
But I think we should be concerned about Portugal because Portugal has gone on a strike today.
The unions -- entirely happy about the austerity measures.
And I think Portugal really needs to rewind the -- and -- -- have a look at what happened in Greece.
I mean the Greek.
-- as -- also not happy with the austerity measures but the eurozone just carried on pushing that.
The that that that recipes through in order to -- -- so they get Greece into some kind of shape.
-- and actually and a healthy state right now and Portugal I think he's -- at the same problem.
Portugal will need to go to the market sometime next year to borrow money now.
In the meantime we will need some kind of bailout but in order to get the bailout it's like Greece -- to in order to get the bailout they need to push through these austerity measures.
The people in Portugal I'm not happy with this they say you know -- we've had enough austerity so what do you actually is it.
What do you do in this situation.
And I think in the case of Portugal had its ten year debt is that is that 14%.
-- can't really go to the market next -- borrow money in 14%.
Because that's absolutely crippling and that's and that's Giuliani -- and you accept the fact.
Well I'm in many of these countries need to actually go back to the drawing board and say yes.
We need to cut -- cloth accordingly we need to live below our means and then we'll be able to move forward again if they don't and I think you know what.
Mario drug he can't possibly -- reading the same -- as everybody else.
In the belief that the Euro zone debt crisis is now over because I don't think it is -- is gonna drag on for a long long time Diane.
Now we hope not David but right now looks like that writing on the -- thanks to be announced the stated.
Let's take a quick look and act on commodities now oil and gold have been down all morning we're now seeing oil down by about a dollar thirty at 106 -- barrel pulled down.
I sixteen dollars -- almost sixteen dollars and 1630 for an -- Coming up this hour I miss his guests will be Frank Rich of New York magazine Imus in the morning continues right now on Fox Business giving you that -- of.
