The First Look - Andy Cinko, Bloomberg

We're joined by Andy cinco from Bloomberg News Andy are you -- All right that. We got a -- trade data this morning that showed that we're importing even more in exporting even less than we thought we had great we have a fairly significant trade deficit gap. Yet it was pretty big in April it was if the point one billion dollars now that. Felt like a large amount but it really was not all that far off the estimate of 49 point five billion from a economists though you know. Not would not quite exporting more than we import but it's you know dropped nicely in. And several years ago. Why wire stocks down today so much she had the Dow futures the market's not open up for the Dow futures are down a good fifty points. You know -- think continuing concern is what's gonna happen over the weekend we -- Spain we now know that there will be a conference call tomorrow. Among Europe group finance ministers they are expected to talk about some sort of he'd bail out for if not mean for their banks. You know and the size of that matters -- to take that to be a very large number than it means the Spanish banks were in much worse shape than we thought. If it turned out to be a low number that probably will not be good news either I would suspect because. That'll mean they're trying to you know bail out with a minimum amount possible but they have to go back a second time and ask for even more money so. It's a pretty difficult. The -- that Spain is trying to. -- line here and it just doesn't look good for the weekend I would they -- gonna probably buckle -- seat belts or Iraqi Friday trading you may very wealthy area fell off into the close. Today -- stocks because who was gonna wanna be wrong going into a weekend of uncertainty and a possible big sell off on Monday. You talk about the day traders trade the the big guys that are short term. Traders they might just bow out of the market -- not -- holder. Yeah exactly exactly and and if you're a big institutional -- you're not gonna take any risks here you're you're gonna play that as conservatively as possible. You know there was betrayed you were thinking of doing in likely not gonna do that. It is the position you're not very comfortable with you probably wanna sell out of that -- -- you know it it seems like the downside risk is much stronger. At this hour fourth stocks Benton than otherwise would be. In the the there seems to be evidence that the worldwide economies slowing down you've got China taking action. You've got the European situation not even close to being resolved and here in the United States I think there's a genuine fear. We may not drop in her recession but I think it if you have GDP growth of less than 1% it's certainly -- -- like recession in the unemployment rate data would indicate word recession. Would what are the central banks doing to try to calm about this downturn -- what can -- Well the one thing they can absolutely do -- to cut rates and we saw that from China the other day we thought from Vietnam this morning and we he's the it certainly and that continued commentary about what the European Central Bank made the next which everyone assumes will be another rate cut because they have increased -- Last year which which seemed like a really bad idea. You know in terms of the US rates are already at the Euro the only other. Arrow in the quiver for mr. Bernanke is to buy assets whether that mortgage backed securities the treasury bond but you know even -- -- -- bank -- said yesterday. How much effect. Positive effect that may have on the economy is really hard to say because. Frankly -- this solos we've been discussing the ten years already yielding only one point 6% the mean. How much more gas. Is there really left in the tank -- -- it is so it kind of feels like that central banks they have reached. The breaking point at the end of the road here and it really is now up to the politicians to take charge of the situation. It because they beat you when you cut rates Yuri you are doing some damage there too because people who with money in savings accounts. They have less income yet there's still a lot of people are and and of people every day Indian they've got money in the bank. And all they're doing is they're living off the interest because that interest is so. Small they -- -- restricted their spending as a consequence. Bright bright and minutes and as we've discussed there's really not very good options you can go -- high yield -- junk bond. You know you can kind bike corporate. Dividends either by owning the stock itself for mutual fund but of course you you end up with. I was still a risk there of of the share prices falling and eroding any sort of dividend that you're getting at least in the short terms so yeah this novel have a good -- he's here. And the central banks to pretty much. Pretty much stock they know they've reached a point where where we're printing more money will the perhaps only cause much higher inflation down the road or not bad. And perhaps the inflation because the more that they keeps saying we're in a crisis. Bryant Barry you're gonna keep sticking money in the mattress there in the bank you're not gonna spend it and we need people to and businesses as well feel more confident. What about stimulus spending by the government is that. You know it doesn't seem to be much appetite for in the United States here but what about in China mean they need to build out their infrastructure. To a great degree is still many parts of of trying to that are rural and haven't been developed is that something that can. It Tenet is is likely to occur in China perhaps in Europe. The you know Barry had a I don't think China's got much more it has been done here they've built several cities that are. According to the negative report those cities are pretty much empty -- They've been building homes that are unfortunately. Seem to be empty and now that prices are falling for real estate in China of course that that. Does not. Engender any sort of need to go out and run them. You know by an apartment building -- home. And build a high way to get to those places though that stimulus and spending things like not such -- great idea you sort of growing. Good money after bad idea you know you might be better off. If you add extra cash and being a government -- cut taxes or else cut regulations do something else that tries to boost them up the economy get those. Those juices flowing to -- businesspeople and and regular citizens spending again. All right -- thank you very much for your time I sure appreciate it. 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