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FBN’s Diane Macedo breaks down the stories moving the markets around the world.
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This is this Imus in the morning from.
On the -- -- Diamonds and good morning everyone it looks like Greece we'll stay in the eurozone after the pro austerity Conservative Party.
Narrowly won the parliamentary election there Fox Business is actually Webster is live in Athens keeping track of -- fourth.
And actually now that the results are in what's next.
Well now it's the job above the new democracy leader -- some RS the victorious candidate.
To try and form some court of -- sort of coalition government and he is already begun that process.
It's very important because this country -- -- -- went -- to government and with an economy that's in its fifth year of recession.
We do know that whoever leads his coalition government's -- and some of the other parties.
They will try to renegotiate in some form the austerity measures that are being put in place.
In order for Greece to get its bailout money.
Perhaps if nothing else given more time to get -- reform measures in place and given more time to pay back the money so there's a lot at stake.
But what I find interesting today is the markets that initially moved higher have now template those gains.
And perhaps more worrying is the fact of borrowing costs in both Spain and Italy are starting to move -- Spain above 7%.
Which is considered unsustainable.
And Italy already close to 6%.
Greece by comparison to those two countries is relatively small as we know Spain has already had a bailout for its banking system.
But will -- require a full blown bail out and candy eurozone handle an Italian.
Collapse of its economy many economists say no but in the meantime Greece trying to get -- government together.
And we shall see and continue to follow that throughout the day Diane.
The trend continues SE one problem gets resolved in another one opens but we're glad you're here to keep this updated -- she will keep checking with you throughout the morning thanks thing.
I let's take a look at the markets now here in the US future that -- pointed out.
Reversed their gains -- to the downside Dow futures are down by 43 ABS and he's down by -- And the nasdaq's down by 10 every year European stocks got that initial -- from the Greek news but concerns about Spain were renewed.
When again -- that she mentioned its borrowing cost jumped more than 7% on the ten year bond.
That's a level which in the past has triggered -- need for assistance from the eurozone.
The European Union there -- -- we'll see if -- comes of this but in the meantime European markets.
Are down on that news Paris has reversed direction now in negative territory London and Paris are still in positive territory but has.
Have lost a lot of the gains that they gained from that news out of Greece now let's take a closer look at all of this without -- senior market analyst James Hughes.
Over in London James glad that we just mentioned markets as they shed their gains after Spain's borrowing cost jumped how danger is is it for Spain.
Across this this level of 7%.
Bush signed the process 7%.
The -- has signaled that by and unless of course what we worried about few weeks ago.
When they see in these bundle auctions and whining about the contagion into spying we were looking at least.
Those bond yields moving from from around six and a half a cent or -- 6% to.
To close to 7% now with pushed through that level was of course -- bad news.
But this this whole eurozone crisis has a lot of people -- That once you got a great connection out of white once you lose started looking at maybe some events which took and it -- this to calm down that move might be seeing stocks get better but of course that's not the kinds.
We've we've had a much the safe option get any -- Greece and really.
The way the market is seeing -- as not rule change that there's nothing different now than what there was before.
Apart from maybe the new government is gonna try and and renegotiate some of those some of those austerity plans but of course -- successful level -- -- is the next.
Big question of course it just seems that we -- in exactly the same place now as we work a week two weeks ago three months three months ago even -- there's nothing really Chinese and that's why the markets are reacting.
But it is the big question -- -- and -- touch on that a little bit morbid the conservative part it needed does say he's optimistic about forming a new cover of coalition government.
How optimistic are you then you'll be able to accomplish that.
Well I think forming a government might not be did the -- -- she -- they have a mean we had before they could form a government that's -- we went to this runoff election of course have to remember yesterday.
Wasn't the first election in Gracie was -- it was the second row -- I mean.
They have now got I government in Tyson and some of that the restrictions that they have about.
Having to renegotiate these austerity plans with Germany are the big issue but I just don't think they got to get to solving in the negotiating any of these point.
And it's going to be -- -- -- what the close election and the opposition party is promising to fight -- serious Alicea planes out thanks state.
Quickly breaking news pets -- is boosting their quarterly dividend by 18%.
To sixteen and a half cents a share.
Imus in the morning continues right now on Fox Business.
