The First Look - Liz MacDonald, Fox Business

Good morning and welcome the financial exchange Wednesday morning June 6. Speaking of June we're joined by June night we also have Liz MacDonald here from the Fox Business Network a busy day. And you kind of a curious scenario -- stock market was up yesterday 26 points. Lot of problems in Europe being acknowledged by Mario Draghi yet stock futures in positive territory this morning. Yeah well go figure we'll take it it we will take it Dow futures up 52 S&P 500 up nine NASDAQ up 22. Well up 89 cents to 8518. You get that tenured US treasury at one point 561 gold rating hopped in the 1920. At 1634. Is all about that ECB meeting this morning via picture is in let's go to two new York and talk to Liz MacDonald. She's got some impressions about that meeting in the announcements coming out of your -- welcome to the show Daria -- Out of money am delighted to be that you. And this. Why did the ECB leave interest rates alone lead they were roundly expected to reduce interest rates by at least a quarter point where they and a. -- they weren't and I think that they are still worried about inflation in the Euro because it's probably know that. Looking around. The country that are probably they gonna have the fact that went their way. Out of it there's no better way to -- and we're gonna have to borrow a lot a lot of bond. There always worried about -- in in the -- -- found that is there big mandate. Why but why would they be worried about inflation when they've got 2530%. Unemployment and a lot of their countries I mean there's no certainly not going to be any wage inflation -- I don't want any -- inflation when you consider. The fact that they've got. Effectively a subtle about eleven to twelve trillion dollar in debt. We're trillion dollars of which they have the rollover they have a lot of pop open court increased. Being which went their own housing crisis because a lot of people bought vacation home a bubble and being a bomb was created. They effectively cap is being able to print and build a pothole in the -- what a lot of money -- lot of euros. The country. Can't Italian wander around the ECB had to do it and so do because that and think it was going on it. Is that the name of the game is that banks. Are basically barring an -- he'd beat it by eurozone debt and so you know requested it it -- have much more. And that I think and the cut further because survivor of look at -- in Germany and inflationary days -- pressure on the minds of Germany for sure. If it may be but I mean my gosh is a completely different circumstance and into moral I can just see the London lowering their rates and eating -- -- to EU like -- that is being telegraphed. It would be a brilliant move by the UK to say okay you guys don't wanna reduce your interest rates were gonna reduce hours and then all of a sudden we look like the the darling child. In and a lot of money I suspect flows -- London and they'll also dale help their economy. Yeah and you know what else happening dude you're at a state of the news broke last -- that are there. Made it more on or did you this this spent eight days and bad. Termed it is about that are there is what I tried to make move monetary -- -- not -- Economy the US economy it's called pushing. Honest -- much more can they do I mean they're keeping inflation and interest rates that affected Europe and great spirit and ordered a court appoint. And are 2014 bullet out and it it was I'd but it and it they're sort of security. And then -- and depressed long term note in the press how -- -- -- -- a portion of the rat right now could along those. It's ten -- that what one point one point five. I won fifty what 57 on the ten year we saw hit the side hit a record low on Sunday night -- 145. He had an extraordinary we haven't in the bubble dating back -- in nineteen XP so. Ever yeah you're right and -- we haven't seen them and you know we've been after World War II the United States -- capped. The bond yield nor did he basically for our way out of our work work can't get there wherein amnesia territory absolutely right. I wonder if it like I I. Predicted. Years ago that we're gonna do the same thing that we did after World War II we've run up this huge debt -- debt today is almost as much as it was after World War II. You devalue your currency you live with some inflation rate it inflation in the given what's going on with real state inflation would be the worst thing in the world list have a little. Yeah I actually should. I hear exactly what you're saying and -- name of the game to be able to you know being the door a little bit inflation. I think that would undermine the policy maker in the state. So we can grow our way out of debt crisis happened out there right economic policy that -- in the need to grow our way out of that. Quite a bit and the question in the market is do we have that but I'll I'll be certainly in your -- -- -- that it's the bond market which it has been. Countries. That ten year government bond yields -- -- level will be -- all. You know up about 10% and bumping up against the pressure that -- -- our collective Greece Ireland. Hey -- we sure got a mandate on economic policy last night at a Wisconsin didn't -- Yeah and it I'll say something. It would really striking because remember. Left all I held governor is the law there reprimand referenda or rain and state government worker -- patient and -- imparting targeting -- -- you know when you think about it. In Beirut much misleading information about what was going on what I've been at all of the network. And when we've been doing on the ground reporting big name of the game the issue was was that government figure -- where -- We're getting -- little credit health care benefit -- the private but it doesn't get attacked their state for. There again -- tensions critics are out there -- -- recorder that their pay annually. Again let the private but it doesn't. Yet. And the private sector taxpayer would but did not even about how to crisis state and local taxes architect continue to build up. Even though that they were or how about well I think what are the experts that up and that there had been hey wait a second governor was saying look. -- worker and union -- and I collectively bargain yet. More and more health care benefit more more pension benefit got a kick in a little bit more of -- -- and -- your -- yet have a deductible about 13% for the twenty -- -- that -- by the Specter. But we will give you annual increase is that that's the cola are living it up with and we will -- -- -- a -- at at a reasonable. But the issue was you know -- politicians is they are elected in. We're confident basically by automatic news coming out of worker checked it -- That go to our politicians and at that game with the -- again that you expect there in with and and they sent the message loud and clear clear -- the country that need to -- -- speech and you know maybe it is the watershed moment. -- I'm hoping so I mean we have the same -- the same problem exists across the country it's in New York it's in Massachusetts Illinois is being strangled by public unions. If it's a it it it was I looked at is as being kind of microcosm of what we should expect in November this is a major election point in November. I think you're right and the question will the president be able to even the labor union vote and download any reliant as we have appear more like that the will opt. At least something odd that a lot of untreated and my. And I I've got people think and my family and then it's panic and yet -- the joke of all it would John F. Kennedy it fit well market dominated by the Democratic Party. Would the Democratic Party at is that the reforms that even Bill Clinton and -- -- -- and -- -- in the mid ninety's. With the help of the GOP congressman. -- and the thing is it -- the bus -- -- hiring -- -- 150000. Dollars the year we have it's quite -- -- Where their government the benefit are basically more than what it can't wait it's been -- been terribly wrong that I'm. But this I think he's the one exception to your point would be I'm not it's the labor unions I think it's the news I think it's -- yet to separate it into the public unions from the labor unions the labor unions don't get this kind of treatment they don't have these types of benefits. And even if they do they're being funded at least out of the private sector where. Later talking about the FBI ill again -- and -- -- eight you know eight did not immediately that it is -- -- didn't Ian -- out. Where and then automotive Belle isle where the you know -- -- PM -- -- -- is evil ways before it got the ballot it's been. Here's an accounting fraud it's been basically the right circle the apple less than one year old with the best dictate. Certainly it helped -- bad bad company that the debate there -- -- that what you're saying but the fact of the matter it. One out of -- work at it as they work for government may make it paid about one point five trillion people. -- spend -- future and -- every summary form there where we figure out. But we don't wanna have -- warmer in government who really aren't doing anything it broke all involved all boy and not -- -- by. It is limited government caught it. And by the way go to -- on the -- all -- and and I think the sound bluntly they sound like I -- -- -- and they wanna go for a walk let you go list thanks for joining us shortly. -- --