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Mark Grant, Southwest Securities managing director, on the upcoming presidential elections in France, and why they matter to the U.S. economy.
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-- economy why we -- interest in and -- what we're joined by mark grant managing director at southwest securities.
And mark you know I guess the rhetoric from the socialist candidate is is why we're answers that and it.
Well that's one of the reasons he's -- proposes raising the attacks on the wealthiest people in France.
To 75%.
He wants more governmental spending.
He wants to.
Increase.
What the government is doing across the board he wants to raise the minimum wage bill that really means is and why it's so important.
Is that his policies are light years away from -- former rules of Germany's policies.
And consequently there's going to be great consternation in my opinion that the European Union.
Well speaking of the European Union as and also the threats of may be getting out of the Euro about threats of changing.
The way things are done you know because everyone's looking.
At these giant bodies in Europe to sort of navigate the way out of this -- that the entire continent seems to be in is that really one of the biggest -- points that in the -- -- what really connects our economy and our stock market.
With their election.
Well yes one and he wants to do two things specifically in that regard one.
He wants to go after the EU fiscal packed and renegotiated.
Which is causing Germany great banks and to.
He is swore -- Doubles of the France or the banks and he's gonna go after the banks that all the French banks have big offices in New York.
They're all part of corporate lending in the United States so it's gonna become very problematical.
With the French government going after their own banks and very negative fashion.
Mark connected Oxford viewers -- are based in the United States in May not understand yeah oh what their relationship is between what happens -- Nicholas Sarkozy loses the election and what happens in arm.
Markets.
Yes and our market -- Sarkozy word to be the winner which does not look to be the likely outcome.
Things will go -- long basically the same.
He's more of this onerous -- Moro -- capital of -- you would say.
Well -- homeland.
Is really the socialists with very kind of socialistic programs.
And what happens because is the government's relationship with the banks in Europe.
Then the banks have these relationships -- course with the American banks for now everybody is becoming concerned about.
Counterparty risk again.
In the capital markets Begin to contract.
And then that even filters all the way down into India equity markets through the institutions.
So there will be -- -- -- on America.
From who's elected president of France.
We've got about thirty seconds mark not any of resulting spill over effect when -- start deceased or socialism.
It pop up in and one area.
That of Europe are you concerned about maybe it's spreading to different parts of Europe as well.
Yes -- socialist government's currently.
In my opinion I mean -- they really are in Greece and Italy and Spain.
And that you're gonna looks like we're gonna have one in France.
So consequently it's a very different dynamic.
For how the European mean -- governor of course Germany and France and the two biggest countries.
And they're gonna be just -- logger -- with each other which is gonna have all kinds of other contagion not only for them but for us.
Although market must say the good news as we might get some good French soccer players who might -- -- -- Americans that of our friends.
Mark will be watching the legs and paid too much they're coming back that's right that's -- mark grant we appreciate.
