US companies getting hit by Europe's economic crisis
More warnings from US job creators amid debt crisis
- Duration 8:13
- Date May 26, 2012
More warnings from US job creators amid debt crisis
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Harold and so hello everyone I'm Charles -- -- for Neil Cavuto and box on top Europe's economy the walking down.
Leaders this week striking out on a fix -- -- financial crisis.
And that's putting Americans operators into Tiffany's saying what's happening over there.
Hurting them right here they're cutting -- sales outlook for the rest of the year just the latest company by the way does sound a warning now time for the rest of us to start worrying.
She's just signed a -- -- analysts Hinske and Charlie Gasparino bent.
I'm worried I've frankly say that.
As a 67 year old -- -- following public policy for about.
See how many years have been about 45 years -- I am extremely worried slowdown in China extreme slowdown in Europe looks like the recovery is slipping -- -- here in the United States dot.
Commodities weakening all through the developing world.
-- does does not a lot of good news out there and that's despite massive fiscal and monetary stimulus.
Where -- -- out that -- -- I've no idea but I'm worried.
You know they get -- that thing.
Almost every company that reports these days says -- all but Europe is just like it's it's more than just the red flag it's an anchor and it's hurting the stock market to turn America.
Not just -- its -- -- it's Abercrombie & Fitch at staples its best buy even Cisco.
But here's what you gotta start worrying about -- you know it's just like the retailers and whether.
That some of these companies are you blaming your and -- worries about Europe for -- sales are all back when it's their own execution problems.
I'm worried but as been pointed out I think you gotta throw and other regions of the world -- -- trouble in China if you when -- -- start talking about recession they are or even here.
I -- today Charlie -- it's only 78 months ago that America would be that in the best shape.
Of everyone out there I -- -- Rosen well we thought that's what you're falling apart -- we we are the tallest midget in the room right now.
But that's not a habit that's that's that's the fortune good stuff that's how they describe thank you Adam that's how they describe on Wall Street -- a much of major hedge fund conference the other day.
Major investors on a panel basically said this over -- every one of them predicted either a moderate to a severe recession here in the US.
Over the next -- from Europe triggered from Europe and China there's this is baked and the only question is when it comes.
And so having said that with so many Smart people all -- making the same agreement.
How much more -- -- in this do we get you know by everyone's saying austerity in Europe but I don't know that.
You know everybody thought Angela Merkel the print money for -- -- -- my -- actually suggest we do the same thing.
Well I don't I don't disagree with anything that anybody has said about Europe I just think that we need to keep things it in perspective I mean.
Europe has been failing now for several years several decades if you want to be really on charitable and it doesn't have as big an impact on us as some of the other things that Ben mentioned I mean.
A slowdown in China would be far more important for US exporters then it would that it would be for a slowdown in Europe.
It's a big and important market but it's not nearly the most and other.
-- -- -- When you run for I don't would you rather that we -- it when you're on the razors edge like we are mean -- our economic recovery is tenuous at best.
And as -- said I tons of -- in fiscal and monetary stimulus.
Propping up really marginal GDP growth -- it takes is a little bit and this little bit is occurring in Europe.
You're actually right about I don't just.
Grid connecting millions more disturbed that they -- your -- Europe's been on the press that's a good out of Venice.
Europe's been on the precipice you -- and they've been they've been stepping up to this precipice with their crisis I mean literally for a solid year.
And you know it's it's hurt their economy it -- and clearly it has heard some of our company's board doing business there I'm just making the observation.
That they keep standing on this press -- and they don't fall over it I'll hopefully want.
Here's the thing -- bad all of a sudden our companies are falling -- biggest one maybe some of them are using it adds an excuse but.
Almost every company that's reported this earnings season.
Has said yeah that's one blighted is its European inserting the stock market lower -- -- -- -- would be recovery.
You know making it even.
More fragile than it already -- us.
All of business growth is a bad mood and optimism and businesses -- all the optimism on the system.
-- raised our lives with dashed her letter was dash Arkansas I'm consumers by no means all that upper middle class -- -- consumers.
Are terrifying this is affecting mood.
For fear that I might wind up and driving an electric car I have to agree with -- I can't -- on -- But I don't think about -- one thing I completely agree and into the big.
I I think -- Visit now and I don't worry so much about -- impact on us I worry about China and our own policy mistakes I think we have a lot of trouble here.
In terms of job growth in in terms up.
Look looming a tax cut expirations there's a lot I think I did change the mood of the higher I think we're -- -- -- I think you're underestimating just how big of a problem Europe is from the standpoint we have country.
Big economies Italy is a big economy.
With no growth know entrepreneurship.
These -- company countries that are gonna have to go into massive austerity programs they can't just print money anymore.
And that's gonna have an impact.
And a big impact.
-- -- and here's the thing every day in a market no one's really talking China percent you don't -- your bad China news I see.
Capital would go down do you know -- if you goes but every day it's about you're what's gonna happen and -- -- that -- yeah but there's a reason for that's right.
But then you also know Charles if everybody's talking about something that that's not that they not a worry about ought to worry about China because people are about the -- about -- European defaults.
I I think that -- is there another -- ahead.
Greens are not defaulting on its debt breezes and a reason it can't continue the brand is nice to -- -- cannot sit.
Rice is a -- I think world's it'll do what we're worried that big spread but people are worried about what did quite well that's when you know we're we're doing is.
-- -- -- Is that a lot of Charlie's hedge funds sources have made a lot of big bets on Europe over the past two years and as we've seen.
A lot of them have gone horribly wrong Europe is up big liquid market with lots of opportunity for New York hedge fund managers were more to that and illustrating how we got -- -- -- I'm not -- -- an economic consequences.
-- right -- -- you.
But here's the problem -- DUS banks are intrinsically tied to your if your has real problems with their economies and with debt.
-- Group -- -- it even beyond the banking particular banking crisis I think when you have companies as diversified as.
As as Tiffany's and then something that's not luxury goods every once saying that Europe is hurting them and therefore making their own you know they're -- financial safety.
That much more vulnerable than say it really feels like at least from a stock market point of you the greater risk right now is is you are just going to -- on the -- you're out.
In Europe is digging out to have a major effect -- the United States financial industry is not a bailout had a big effect on US retail and value as finance and get have a very large effect and as I say it just brings down the mood endlessly mood killer after a -- -- where we start recovering.
I know what I just say.
Let's Brees did it and get out make up your mind because I bridges you know I'm so tired of this drama also -- -- -- terrific for you know.
Greece is not the issue the issue is Italy Spain major cop economies -- possibly France.
And their impact on our banking.
The story don't Friday it'll Avalon might look it go to the -- I -- Catalonia is running out of money and had to go to Madrid for money and the market catalog our catalog I think evolution it's very definitely made.
You -- Catalonia right right Beirut endlessly about.
It's like yeah.
To say the market was the market still ended up in Europe so -- very up that's that's why we should feel good at the.