You're watching...
Spotlight Ideas Managing Partner Stephen Pope on the impact of the foreign elections on the nation’s economy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Is next for Greece and the European markets overall Stephen Pope managing director for spotlighted is -- now.
Right from London and and Stephen wooded areas to -- on something we're seeing some headlines crossing right now from Essen.
-- making a quick statement saying that the election.
From yesterday has no immediate affect.
On Greece's ratings what does this mean -- you.
I think -- saying that because absolutely nothing has changed as a consequence of this election.
The same policies that agrees to the second bailout in February.
All of those -- -- controlling parent the current time and when you look at Greece.
50% of the people.
Voted against -- -- program.
I think if you look at the vote -- age or the older people wanted to go to new democracy impasse so the younger ones who -- facing a 50% unemployment rate.
When necessary so so this is a country it is still terribly divided and there's no way we should give Greece any credit at this current time.
We'll eat -- -- Steven Hewitt said that markets would rejoice.
But things actually had gotten worse for the Greeks a couple of things here.
Is the fact that while European markets really didn't rejoice in fact we -- A little bit of a pullback in oil the only market they're really responded was the Greek market what happened there.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And David the French election whether a socialist have to control spending moron rice and taxes are gonna get out of control.
So it was right that we back call for most home prices I think you can see the -- probably had.
Be under pressure from so many weeks now waiting for this election to go through that there was some form of relief rally on the Athens stock exchange.
But Germany speaking I think any are rallying European asset prices with the exception of German assets he's just a great excuse to sentence about strength.
Okay -- -- -- let me get your reaction to something else in the G-20 summit is happening today we're getting some headlines crossing Reuters.
Giving out some some comments that are being made in -- talking about Euro -- stability at the G-20.
Summit and that they need to Dominican erection had how to break the feedback loop between sovereigns -- and banks that want to break the feedback loop what is that.
Mean do you moving forward -- Well I think what -- strawberries coded language it's simply allowing each Euro zone sovereign nation to be responsible.
-- banking structure is -- -- working.
We probably do need to move to -- some -- -- banking union.
But that unfortunately is the Europeans want to have it means more bureaucracy to -- gonna have European banking administrators.
Then they'll want to have this ridiculous concept of -- financial transactions tax.
I think unfortunately.
What you're seeing is that we could see what needs to be done we need to get rid of the bad assets put them into a bad bank took -- capitalized by the ECB.
And then we recapture lies emerge the other banks European Union states.
But then suddenly weak.
-- struggling to find that Europe is gonna make itself any more competitive whether -- -- -- banking or porn industry so.
Yes we need suit can't get away from B sovereigns controlling the situation but probably gonna go -- this not.
Right Stephen you've been very bearish all along about the Greek situation and at this point that your your predictions continue to correct Stephen -- thank you very much.
-- -- --
