What's Up On Wall Street - Steven Russolillo, WSJ

Well we have a new president elect in France he's a socialist whose name is France -- -- on. And I don't think -- for supposed to pronounce the -- that right its hold on hold on hold. Is that how you men you worked on my friend and that's a with that news though last night the market for selling off quite dramatically not so much this morning they're down but not nearly as bad as it. Now it's not too bad -- Dow right now down 24 points NASDAQ is actually flat -- US. Tenure US's down a little bit at one point 87 gold is trading down seven dollars and eighty cents. And then you've got -- down 97 cents to 9751. And I'm thinking socialist in austerity just don't go together and we we've. Got to treat for you because later in the program we're gonna be joined by David -- here Villard. He's the Wall Street Journal deputy bureau chief in Paris so they mean it that this is the perfect guy he knows. The story behind France want a lot he's got the -- well audience -- on the inside -- and will -- -- a full report from him later in the shows you wanna stay with us for the duration. Right now -- I can -- we are joined by Stephen Russell from the Wall Street Journal Stephen welcome to the show Daria Dolan. Eight we are watching as oil prices decline and holy smokes is -- ever happened perhaps want wire oil prices declining so rapidly. Yet you know it's a great question because. At least you know we talked about the a lot of the last few months oil was spiking. In the early part of 4012 and there are a lot of worries that the -- which happened earlier than expected and so the leading up for the summer things which is gonna get even worse and infections in the exact opposite. Is how it's played out I think that there are. You know -- you know as the the global worries that kind of RAMP up -- over the last few weeks and few months you're starting to see oil flat and that's is that the one silver lining in all of this especially for consumers because. Gas prices are coming down now though. You know it's not necessarily a good thing for. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- But you know still oil prices are still oldies are still around 100 wearable below you know around 97 yeah that's still elevated price though and it's built people are aware that the guests. We have -- come off now over the last few weeks but just as quickly as they've come -- they can rise again I don't think anyone thinks rather that would -- yet. I drove by -- gas station in town last night 375 a gallon. If if they oil gets down to say 95 and stays there what does that mean for gas prices that mean -- going to be paying 350 gallon for gas. It's possible there is a lag so it'll -- now we're seeing 97 dollar oil and so. You could see gas prices fall even further over the next few weeks but I would say that if we were too. Space sort of if we were at stake in the bank needed maybe a dollar range I think that would be really really good sign for a for US consumers and so it I think that's what anyone. That's what we're all hoping for right now especially -- -- for the summer when you know driving season picks up though. That's spectacle right now. Right now the the shareholder meeting for Berkshire Hathaway Warren Buffett's company. Has concluded use it and to deal last thing any big news that you wanna share -- this coming out of that shareholders' meeting in Omaha. You know I think the one big thing is you know Buffett talked about there was a lot of -- that he was going to do big deal and even mentioned. The phrase it's 22 billion dollar deal it could snag and if nothing for the benefit so. People are always looking closely watching what -- would do next whether he's on the -- -- not and so. I think another thing keep in mind though we have a story in the Wall Street Journal that this is that. You know Buffett has has underperformed the market over the last three years and so. He is you know would Berkshire -- -- about 6% this year which is below with the S&P 500 has done. And so. -- the story that we have here the headlines is Berkshire's stayed sober as market keeps party. -- -- You know this just goes to show that she's not really jumping on the bandwagon of any of these high flying stocks right now. He's still positive and the but he's staying true to that you know the good old Buffett way and so. You know I think along that -- that I don't think -- opinion. Investing in FaceBook any -- I think he's gonna be chasing any companies that the market keeps rallying here. Taking a much more conservative. Approach. What do you think -- his political views I mean he's very close to President Obama. Do you think his political views are holding down the stock price perhaps it is it one of those things were. You might have large conservative. Institutional investors that are saying you know what. We're not touch and Warren Buffett's stock we think he's too closely aligned with president Barack Obama. That's a good question on the attempted to -- that's not entirely sure but I think that. You know with a lot of things that -- -- surrounding Berkshire's and the people are very interest in the succession plan what's gonna happen next. With Buffett you know -- duties just. Just announced that he was diagnosed with with cancer and you -- but still you know he was. You know. Conducting interviews and reading shareholder meeting over the weekend and so it is looked like it was. How it's always been but I think people are very concerned. Or I think some people are consent but what's gonna happen next who's in -- -- -- about it and what's can be that that the next direction of the company and so. I think those are all key questions that I think may be holding people back. -- When they considered the future performance of this stuff. Eight day I noticed that Citibank this morning has he suggested the likelihood of Greece leaving the eurozone is somewhere between fifty and 75%. Is this the beginning of the end for the eurozone or is this gonna be an isolated incident where they throw Greece out and say look you -- wanna pay your bills you're out. Or what what's your interpretation of what's going on in Greece. Well I would be very concerned state aid if they get through -- evidently they don't think you're gonna get any sort of com situation where -- of the -- leaders of this is gonna change you know and then never once it's gonna accept it and state that that everything's fine and hey I think what you're seeing overnight Kyrie and and this morning what was very key for the markets -- -- -- had the elections. In France and Greece and while the election France -- as people respecting. And increase. Does socialist in the generate that support austerity they only hold 13 of the votes right now and so. There's very there's concern that there's going that a lot of the smaller the far left in the far right parties are gaining more traction increased and so. That -- -- deeper ramifications. Go -- her know what's gonna happen but there are thirty -- just general Bill Clinton in the eurozone so. Lots of key questions right now in Europe than what was really interest things we saw steep fell overnight in Asian markets and the US the futures showed. A similar sell off. But that we -- this morning and all of a sudden it seems like you know it's not so bad. As you guys alluded to earlier the -- going down forty points -- -- people aren't going down one point so. It's a lot of people wondering where is this so that was supposed to happen and you know a lot of a lot of people in the world some people appointed at the Euro held at 130 and that was. Sort of considered a key technical level on the fact that it could hold that level showed that you know maybe for the time being environment that is. As we originally appeared or. These PP the European Central Bank will step and then sort of -- prop things up and do whatever it takes to prevent the situation from spiraling out of control so. Those are some of the theories that being floated around this morning and I think that's. Part of the explanation as to why the flow of corruption is the worst of what a lot of people were anticipating heading into the morning. All right well you know what I sure appreciate your time Stephen thank you as always for joining us today on the financial exchange. Stephen are so low from the Wall Street Journal June joining us and giving us a little -- it sounds like calmer heads have you have emerged this morning and we're not seeing. Nearly as dramatic reaction the last election I thought we were going to for. They -- -- digested and think about it a little bit and like I asked you before earlier in the show a lot of us here in the US think -- Why do we have even worry about this you know why are we worried about this how does this affect me -- as a -- -- as -- investor or consumer a lot of us want to know that. In my big concern is if for if Europe goes in to a severe recession there are major trading partner we we do with the baby by a lot of the stuff we make whether it's technology armaments. You know cars. The very big consumer of our manufactured products so they go into a severe recession I'm talking where the there economy shrinking at a rate of 2587%. To Greek economy's shrinking at a rate of about 1015%. A year and -- is just. Things are -- -- are atropine terribly. And if that happens over there how does that affect us in the United States and I think it's already being felt that's why our unemployment numbers have been very anemic. That's wire growth is very needed because worldwide growth is pulling back a little bit.