Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Geithner in Germany to Help with Debt Crisis

Details

  • Description

    FBN’s Diane Macedo breaks down the stories moving the markets around the world.

  • Duration 5:00
  • Date

Clips

Also in this playlist...

Latest Video

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

Requirements of the morning.

-- on the fox.

Good morning everyone -- secretary Timothy Geithner is in Germany today to meet with the German finance minister and the European central bank's Mario Draghi.

To discuss the region's latest efforts to stop this debt crisis Fox Business is -- Webster's in Frankfurt.

But the very latest on a good morning -- -- -- morning Diane.

Mister Geithner will be here in Frankfurt this evening tomato witnessed the -- the ECB president earlier.

As you say he'll be making it a meeting with -- Wolfgang -- look.

He has -- Germany's finance minister I'm sure he'll come with a simple message come on guys get your act together.

But -- -- sir I'm sure his reception will be right okay thanks we know what we need today but the trouble is.

The Arizona's I don't -- real trouble getting an agreement on exactly how to get a handle on the -- crisis.

So here we have the ECB ready they say to do whatever in fact -- was this is to quote about the market's moving last week last Thursday.

ECB president saying quote.

Within our mandate the ECB is ready to do whatever it takes to preserve -- Europe.

He goes on says and believe me -- will be enough -- say those were fighting words on the market's love to.

To perhaps the ECB would be more aggressive the Dow gaining.

Close to 400 points in just a Thursday and Friday session so obviously a lot of expectation built in the ECB will be meeting officially on Thursday that's when markets believe.

Some sort of initial official announcement will be made some sort of aggressive.

Financial firepower to trying.

At least in the short term bring down the boring rates of both Spain and Italy already today we are seeing some progress on -- and the Spanish ten year yield.

Down to six and a half percent in the Italians held a successful our bond auction today with a ten year yield.

Down around five point 9% but the bigger issue is what will the ECB do.

They could expand the bond buying program they could cut interest rates they could provide.

More cheap money to -- banks but the question is will it be enough will -- be enough to restore the confidence.

To tell hopefully won't bring down those -- costs and buy some time at least to get this debt crisis under control.

So optimistic -- to discuss exactly how well he'll be received.

My guess we'll find out Diane back to you.

And a lot for you to keep track and actually -- love talking to let keeping up -- -- how you keep us updated that is thank abstinence.

Let's take a look at the markets now here in the US for seeing that arrows across the board Dow futures are down by 23.

Yes and he's down by about four the nasdaq's down by two over in Europe Italy sold five point 47 billion euros worth of debt.

The yield on the five and ten year bonds you're actually touched on this it -- the lowest level -- seen since April.

And markets in Europe are up across the board fund -- up by almost thirty Paris is up by eighteen and Frankfurt's up.

About 55 let's take a closer look now what's moving those markets -- -- -- senior market analyst James Hughes over in London James a number.

-- of European central banks reportedly in talks to take significant write downs on their Greek bonds.

All in an effort to keep Greece in the euros on what do you think of that plan.

I mean it's not a new -- -- -- it's one of studies we've we've cuts quite long time is just one of those.

Where it's it just depends who's taking write downs of bad banks taking write downs on Greek things we've we've had a number of different parties haven't it's like -- -- on -- on on Greek debt.

Now -- it's it's kind of the central banks and this is -- what's gonna happen of course because.

We've we've gone through the average borrowing a little bit different stages all isn't really increased convict piety and orders -- -- that they have so -- gonna have to be writedowns from banks and and whoever else.

And now it's just the central banks -- to find out how much of write down again have to get it just depends how big that right Downey's.

And of course it is gonna work -- we've we've -- only stories semi times about write downs and moving the goalposts around and locals into what about EC billion and -- -- coming and saying that the that they'll do whatever it takes to save the Euro -- Whatever it takes seems to -- -- just changed it -- of what Greece has to do and how much Greece saudis all the time enemy just.

It it really -- to -- and it.

What would it be in the end they just end up writing off all of the -- for Grayson just as there's not a problem that so I mean.

-- -- This still the same problems we don't really know what to do -- to solve this problem it's another step to say that central banks are gonna.

Take a writedown on Greek debt of course it will help initial term but will it solve the problem we still done.

Aren't that's James Hughes left from up -- over London thanks -- -- great having on.

Thank you.

And now we're getting -- earnings in from Roper Industries electronic equipment makers reporting a profit of one dollar fifteen cents a share that matched the estimate.

Revenue was a slight -- -- that came in at 725.

Million dollars analysts were looking for 747.

Million.

Imus in the morning continues right now on Fox Business giving you the power.

Load More