You're watching...
U.S. Trust Chief Market Strategist Joseph Quinlan on Europe, the dollar, Germany and industrials.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Since the facts support the belief that seventeen banks will be downgraded he thinks that's what's pulling -- -- markets my next guest has a different theory.
Joseph Quinlan okay he didn't have the black Knight came in at noon -- just three hours ago he touched down from Helsinki Finland he thinks he may have the solution.
To a slowdown in the crisis look the fact is in -- from US trust.
You believe with 333 billion in assets under management so we're listening to you that -- Europe and all the fears that are pulling this market down today.
It is lives in the sense that the global economy slowing down 2% was like 4% a year ago some markets are pricing in.
A global recession the epicenter is Europe and we Europe not doing anything behind the curve it was a long -- running story.
Listen you just set the key issue Europe not doing anything -- enough and Germany is in a very tough position because.
It's the citizens money right bill -- saying that to make.
Citi says that's -- citizen's money.
But in the end.
They are dragging their feet and making decisions that are going to cost more later on -- on the liner cannot -- not getting in.
It EDS's mean more expensive for Germany and others later they don't step up they did have to go all the way with the fiscal union more bank deposit guarantees in the thing about Germany is -- people recognized.
They have more money current account their current account -- is larger than China -- so they have to spend some of this money well that's the south is.
Going to austerity gets me address the growth someplace it has to come from the Germany -- the other northern countries you talk about the stingy six.
Of which Germany has definitely holding the big flags and follow us who else is in the stingy six Switzerland Netherlands Norway Sweden Denmark combined these countries have at their disposal 500 billion dollars current account surplus they need to spend that now the rest of Europe but the obviously they're sitting IDR -- -- -- -- be careful how you delicate discount.
-- if Europe -- to make some changes we're talking the warmer climates is funny anybody that has a tough winter.
Keeps its act together -- how it works -- that whatever industrialized nations -- -- but exactly but.
They need to look at those nations and get those nations to at least agree to some type of focus on on what they're doing but does not take things like.
All kinds of meetings and and frankly treaties that the take forever to get some.
It could particularly in Germany every -- with the parliament but we're gonna be treated to another EU summit next weekend -- one near 21 summit.
I don't think that will solve it but that's sort gonna go into the weekend well okay in the US do you trust at this point right when it comes to investing where.
We like -- industrials information technology like the energy sector I like being large US corporations have been around for decades so they've been two wars great depressions.
Financial crises they'll be around today tomorrow next year take a decade Arctic gonna get hit when customer.
France can't come up with money to buy their products say they will get hit the -- of buying opportunity is to be if you're an investor now -- -- that's different that's a different but if -- 345.
-- out there's some good names here that have attractive value which is the US.
While we're so great story or is it wow it's the dog with the -- -- and I am just -- to see through this I use the former in the sense that this is a very resilient productive economy we made a mess in the financial crisis.
But we're faster cleaning it up and -- separates us from European Europe and even China them do you give credit to.
Hank Paulson the Treasury Secretary and the current Treasury Secretary Timothy Geithner for dealing with our situation more quickly.
Maybe not more popularly thought more quickly than the Europeans are I think it much more proactive and Ben Bernanke put in particular as well those three really went after the -- identified the problem with history.
Astute student of history with a Great Depression recognize you have to recapitalize banks liquidity.
The Europeans haven't figured out the story we travel a lot what's your best -- black trek I mean just came in from Helsinki -- Not to drink any wine tonight but always -- -- -- lots of water are a lot of thank you very much Joseph Quinlan chief market strategist at US trust.
And thank you because I know you're tired but you came straight to us to speak with us exclusively.
