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-- love Reese Witherspoon finally OK it was a short holiday -- in the United States but it's back to normal this week for all the markets.
Of course the question is what is normal these days but so far it's been a tough go here in Europe joining us this morning to talk about the upcoming week and what could affect the markets is Terry -- managing editor with Dow Jones Newswires and once again Terry thank you for coming in this morning.
We've had a plethora of really -- economic news this morning.
What stands out to you what.
It sets up that we -- this morning we got the manufacturing PMI is for November.
The eurozone economies all all brought down revised down to new lows.
On the on the fringes -- -- the UK and Spain also a record lows so it really is looking as if you're the sliding deeper entered recession the close of the year.
So this sets up -- on the on the policy front we -- expect for the rest of the week.
Today and tomorrow the European finance ministers are meeting in Brussels to talk about among other things -- possible 200 billion Euro stimulus program that might also look at aid for the automobile industry European in Europe there's some discussion there almost as much a consensus yeah Germany's already -- we've already done enough.
Enough populism -- -- -- -- let's go therein lies the problem with the European Union is because all of these countries have their own ideas of what's appropriate -- that's right because so many have all already done their national programs and so now for the European Commission cannot say we want another 200 billion.
That's certainly going to be -- -- going to be -- -- some very deep discussion of next 48 hours.
On Thursday of course very much -- focus on the 2 big central banks right in Europe that -- the ECB and the Bank of England what are you expecting a solid Bank of England I expect 75 basis points from -- -- time PS we really see -- this happened we haven't we had another small British -- have you bailed -- you know the government this morning -- to the banking sector still doing very badly they still need to have a lot of support from not only from the government but also from the credit markets.
Beckoning them -- move down pretty dramatically.
The ECB is the open question because ECB.
Our board of governors have been over the last couple weeks of cautioning the markets what we know the economic news is terrible we know inflation is falling pretty close to zero we know unemployment is going -- we know that we're and I and -- recession or at least at the beginning nothing.
But we don't we don't wanna go down to quickly want to keep some of our powder -- Disney gone beyond that point -- honestly Terry I mean.
Yes I understand to have a little bit of caution but -- -- get out the window in this environment let's appoint -- -- diminishing returns remember the Bank of England they cut interest rates by.
125 basis points that was a real shocker just a few weeks ago.
-- the ECB -- come down pretty pretty steadily but always at fifty point clips.
We're kind of looking for them to do that again this time maybe with a signal that they'll do so again in January.
But -- to the UK we saw the PMI down we've seen mortgage approvals hitting record -- it appears that the recession.
Really fighting hard in the UK you think that's true.
But there -- a lot of forecasts actually that are going that direction because we began with such a bubble in the housing sector.
Household debt qualified -- was certainly one of the highest -- in the OECD.
So we have this this great come down a lot of households now in negative equity.
Joblessness is -- is is very much on the rise now we -- the high streets have retailers are beginning to shutter.
-- -- senator -- desperately throwing -- discounts to get at least a piece of the the Christmas shopping season so.
-- -- -- seeing more of what we're hearing more -- is that the US was the first day and we'll be the first out and the UK and possibly Germany and Spain.
Could be -- for a tough road.
Yeah and the German businesses reportedly asking for more help from the German government the German government.
Considering a second stimulus package -- Well German chancellor and -- America -- some some pressure also from within her party but also the business lobbies.
Would like her to do more than fifty billion euros that she's done so far.
Now this could be in conjunction with a broader Euro program that -- European Commission.
We're not sure but I do have now -- and her finance minister Steinberg saying -- up anymore we've done our bit.
And we really don't see that -- the purpose and pouring money into consumer economy will invest in infrastructure and research and development.
But we're gonna keep it there.
So just recap very quickly -- 75 basis what you think from the Bank of England how much from the ECB -- -- the question is the safe plays fifty dollar 75 -- ECB as well we shall see Terry Roth.
-- -- the -- Angeles thank you so much her very -- thing we.
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