Will European woes sink already rocky recovery?
US companies warn headwinds hitting their bottom line
- Duration 8:34
- Date Jun 16, 2012
US companies warn headwinds hitting their bottom line
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Bracing for Greece world markets and governments on edge as the countdown to Sunday's election in Greece -- and the big fear chaos would break out Greece -- a leader.
Who wants to break out of the EU so of the vote goes that way -- -- massive financial meltdown be on the way.
Hi everybody I'm -- -- name for Brenda Buttner and this is.
The Bulls and -- this week -- -- Smith.
Jonas Max -- Gary -- Smith along with Todd Shawn Berger and season knocks welcome mop up time we'll start with you worried.
Absolutely I gotta tell you Lori this -- it's not gonna go the way that we.
Wall Street main street anybody around the globe once they hear this is going to be a horrific moment.
Not just for the United States economy before the overall global economy everybody a mainstream right here USA has to be vitally concerned will what take.
Placing Greece tomorrow Gary you think the US to see an impact from the outcome and about.
Zero no I mean let let's look at how hot -- I have to take -- that burst -- bubble but it we've had a million of these horrible Greek moments over the last two years three years.
As far as I can help look Jamie diamond said the impact of a Greek default and it goes that way.
On our financial system -- B zero I take his word -- but even closer to home.
Are people -- let's just say they they elect this government dig deep fault they pull out of the hero and all of the worst thing that can happen.
Are people gonna be imply any less ipads are they gonna stop going to McDonald's -- The other -- got a McDonald's agrees so you're gonna pay won't pay when a rock months or something like that you mention it all done any impact nothing to worry about.
Hearing be let me -- this -- over to Susan McDonald's Nike Coca-Cola all these US multinationals that depends so much.
On their overseas business I mean likely to rein in if there's more turmoil in Europe what do you think it's but it's important to keep it in perspective so the US economy actually with Gary.
The US economy is not driven by exports and we only export 10%.
Of -- -- GDP Italy it can attempt ever exports so.
We need to make sure that we're understanding how much is really attributable to exports vs other.
You know consumption domestic consumption driven demand and when you think about the percentage of our exports that comes from Europe including Great Britain it's only like 2% it's doing really everybody -- -- all the way we haven't heard from him yet.
-- mean these are all great points a few more rational but in -- real panic they don't really care about our exports are great because the last thing collapses we've had a country -- good when Russia and Soviet Union and Russian default and a little bit of debt that was a big deal in the financial markets and the economy.
More will do -- -- pages are police -- -- taxi company defaulted on some that like it doesn't take a lot to -- a -- -- panic.
-- we've written off Greece at this point it would have to spreading to the other countries.
The US economy is still weak right now it's not in a recession but -- week we can't take the entire -- the entire European Euro area.
Going into a very deep deep recession just vs the mild recession -- already and so we don't know just to get a lot worse and could -- -- -- I -- we -- pictures of the turmoil and unrest.
In Greece and spreading around -- I mean here in the US we're looking at that -- nervous and sentiment so much as a market.
Sure absolutely you -- -- dispute settlement whose behavior we saw sales up two tenths of 1% annualized that's 2%.
We sought Starbucks coming out obviously companies that had European exposure apparently serious problems.
And what you don't we're having a bank run in in -- to me that's clear that's -- panic.
The the next things are gonna happen is that there's going to be a panic when I guess my friend tiger is a jobs since there and he knows that and you don't vote is going to go against yeah but let's -- -- -- -- sayers wrong.
But -- still the -- doesn't solve any of the problems but Americans are seeing is they're seeing.
-- level of uncertainty compound it by this other desert country called -- up.
Debt that that they understand he's gonna have real problems and -- -- -- -- they're stopping behaviors that they were doing -- that that is a psychological point.
It was sing it right now when you can't tonight his numbers are out.
-- -- Many exploits of the guys that -- end up we are back at 2008 and this is what's gonna happen.
You guys are actually make -- -- Greece is if -- some type of a small problem it's a huge problem.
So ever -- -- -- -- regime and for crying out of the upcoming you guys -- looking at the size of the country and that's it then it's nice up and his number one customer for.
Kind of right now is you're black -- goes down six.
I'm not there to buy our treasury what.
That didn't die -- horrible.
The lot of the worry let's get Susan in on this one you mentioned uncertainty not knowing the next step we've been following European sovereign debt crisis for years now.
But crucial vote this weekend.
This is -- what do you think if we get a little bit of certainty about what's ultimately gonna happen with Europe.
Maybe you disagree won't really get that now.
But I will get a little more clarity and got to help cents -- and the markets.
-- -- US I absolutely think you'll help and -- the biggest problem about this is not going to be the direct economic impact it's the fear and uncertainty.
And I don't disagree with that point the psychology of the market and you can't talk markets down and I think that's a little bit what's happening right now that people are.
Putting so much pressure on what's going on in Greece right now that people feel like it did a make or break moment.
I do think though that in general we know markets like certainty and if we have a little bit of -- what is going to happen with free -- -- -- That it starts at constant fear and -- one other point that I think it's really important is that the European central bank and the other bakers are really making a strong push to hit show that they are ready to backstop liquidity because if you have a liquidity crisis.
That can lead to a credit prices and then you get into our -- -- so you haven't markets on Monday.
Since they are tied in his right is that we're we're gonna be down for about a minute using gears and goal line and then it's you're gonna hear that could have done the -- for everything he's.
You know oh yeah G now all of it at the end with a -- of money that makes -- -- tap.
You know a little did a lemonade stand for current -- I'm ecstatic -- about its own parents certainly thank you -- why I look Jonas.
Does makes a good point perception is everything unfortunately if you walked out there his sixth avenue and ask the average person needs say there haven't -- another important -- haven't.
They had -- 170.
Important -- -- they deep ball you already the average person out there -- gonna say hot grease huddle we've been through that.
900 times like rocky.
Eight for -- now that.
I'm glad that we've -- Let's but it's happened at zero goes down they just got you're gonna see about eight million Greek.
Big case in the book on Monday because the prices going to be that low over the and go doubt you know New Jersey.
For crowd and -- -- -- -- that could be a benefit -- possible wanna take some Greek vacation ends cheaper year old but.
What -- what comes into play you know what that did the dollar to strengthen the dollar and that -- on the stock market is gonna be yeah.
Allegedly Ali it's a little currency that's gonna say a hundred drug was on it will -- sell for fifty grow our business and habits that that's going to be -- I.
I don't be OK -- take mcdonalds -- you brought it up earlier from 40% of their revenues come from the Europeans it.
Europe -- -- that meets world like hey how.
Are all eyes are down because McDonald's -- I think health library the market down.
These are that is if the vote on Monday goes the wrong way everyone headed -- -- haven't got a little off but -- it.
Yeah I'm surprised if you look at it and I know exactly holy holy 1:16 am not gonna super size it that's true yeah the US slowed.
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No I'm just they -- just where the safe haven right now right a flight that the -- -- quality is coming up -- it's a bad thing for us in the long -- -- all the garden their garden.
What's or does nothing to do with Greece I'm sorry -- -- money is salivating at this guys and telling you this market's gonna plummet on Monday I actually got up.
I -- there and don't bring -- -- a dinner and a -- to cut it out aren't a good.