Greek Government Chaos Sends U.S. Markets Tumbling

Ellen Braitman explains how turmoil in Greece affects Wall Street.
7:26 | 11/01/11

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Transcript for Greek Government Chaos Sends U.S. Markets Tumbling
Dow futures were down again this morning on news out of Greece joining me now had discussed that and all the rest in the business headlines is Allan Friedman from Bloomberg TV good morning elegance is a year -- 7 am glad you read that as well as where it was only on my -- -- -- -- -- -- -- -- -- -- -- -- -- about agrees weighing down stocks worldwide and it all stems from an announcement by the prime minister. Give us the details. Yeah he came yesterday and he said he was a call for a referendum and national vote. To vote up or down on. This expanded bailout package that came out of Europe last week and if -- -- call part of that in addition to the bailout -- getting bigger. Was also investors -- to take a 50% loss on the bonds that they hold that have been issued by Greece -- a lot of folks are saying. These are not popular measures and they may not -- and it's really throwing everything. Into disarray the Greek government as well as the situation in terms of whether in fact now Greece is going to -- This help -- not so we saw stocks yesterday take -- -- lower on this news. And it's spilling over again and say we've had talent around the globe here in the US -- -- one minute into the opening bell. We've got the Dow down more than 2% and the S&P is approaching that yes indeed off one point 9%. Yeah I mean think this raises huge questions Alan because this not part of the deal right -- holding a referendum on obviously. An unpopular measure increase really puts the whole thing in jeopardy at this point it's looking a lot of folks by surprise and of course -- would all like to know -- Nicholas Sarkozy and Angela Merkel had -- out they when they when they first heard this news Hampshire OKV viewers about the clots. MF global yesterday the firm headed by former New Jersey governor Jon Corzine now. There's -- hundreds of millions of dollars in customer money have gone missing what's the latest on that. Right so after we spoke yesterday morning the firm came out and filed for bankruptcy and developments that happened throughout the day. Or that -- hundreds of millions of dollars in customer accounts not yet accounted for keeping -- at firms like best. You are supposed to have customer account separated segregated from any money that's being invested. -- the firm's own funds and one thing that happened here that really brought down and that global. What is more than six billion dollars in -- on. Bonds issued by countries like Greece in Europe that are having a hard time. And not able to pay back their bonds so here the question is. Were any of those accounts mingled or not because what the firm told regulators yesterday. Is that there were discrepancies. -- these accounts and the New York Times came out and said the figure is about 700 million dollars that's not yet accounted for so. There are investigations going on and certainly a lot of scrutiny folks want to know. Is the money accounted for was -- -- to something else happen or not so now. Right now we got more questions and -- she'll continue to follow that story are right about thirty companies in the S&P 500 are reporting earnings today -- any headlines there. -- lets talk about Pfizer Pfizer is one that's doing well came out beating estimates and also raising its forecast. Costlier that's a pain medication also -- and aren't the pneumonia vaccine also helping so -- -- definitely one that we're watching on the earnings front today. Okay that's a big one. There is growing pressure. Allen on Bank of America to drop its controversial debit cards the U obviously there's a lot of criticism. Where are they planning to do anything about that -- this. Right so we've not heard them back off but we did have other companies yesterday suntrust for example coming out and saying they were taking -- -- -- -- in. Reaction to customer. Feedback they said we should know that that's -- it was not positive feedback. And other banks have stepped away as well -- -- just an -- rise of criticism from consumers also from. Congress members who have sad that this bank that was bailed out and now they're turning around. And they're putting the squeeze back on consumers. Of course the bank would say it's because we have restrictions that have come out of financial reform analysts are looking at this and saying -- -- going to be forced to step away. Or they'll do things like raising the minimum requirements that customers have to have it -- there to be a customer at all or to have you know kind of some of these more free accounts whether -- a mortgage or whether it's 20000 dollars on deposit so. We don't know what's happening but we do know that that pressure again from all fronts really seems to be growing. On the and I OK -- the Fed begins -- two day meeting today -- expected to make any policy changes at -- -- yeah that's the big question we know one thing that they're considering is whether to buy mortgage debt from the market and the idea here would be to bring down interest rates to make it cheaper for folks. To refinance their mortgages. The idea there is it would. Put money back into the economy because consumers would have their -- the idea goes more money to spend on things like. Food or or clothing it's -- two -- meeting so we won't hear from the Fed until tomorrow afternoon I do want to point out we're gonna have. A Ben Bernanke press conference after the announcement comes out remember that just started. Several months backs will be the third one that he's help. Since this new policy of speaking to the -- through the press has started. Okay outlaw all getting new numbers today on US after expecting from that report. So that's going to be du 25 minutes from now and it is expected to show. Expansion none of the hugely rapid pace but but at a faster pace and to show expansion also were waiting for construction spending numbers. At the top of the hour that according to economists we surveyed is forecast to be at 310%. And auto sales we're getting throughout the -- Chrysler for example just came out a few minutes ago and announced -- its October sales were 27%. Analysts are looking for a little bit more the estimate there have been 20% but. It really does reflect from the auto makers analysts are thinking that there's going to be some some pretty healthy growth in those numbers at least in the right direction -- used to -- interesting stories. China where people want their iphones and ipads the details. -- -- What is happening here is that there seem to be more. On the -- ipads that are out there being sold on as well as Droid tablets as well there's a firm. I can -- and forgetting the name I think it's make mark and I apologize that company -- -- I can't remember but for example one day in July. They found. Something like 181000 feet -- and tablets being sold on 23 web sites on the Internet and analysts are saying you know watch out especially to get closer to a holiday time because people know these are going to be popular products. We know people are are really strapped for cash and they're going to be looking for bargains -- He -- that warning out there that you've got these imitators and these you know counterfeit. Machine there that are being sold. How how difficult would it be you know I mean a fake an iPad if you really knew what an iPad -- interesting. Aaron Allen -- -- look at the Dow before we let you go -- we need to talk about this because just in the first five minutes of trading here the Dow down 200. And sixty points almost it doesn't look like a good day. Now and we got the S&P now down two point 6% so. Really there it's being reflected you know it's across the board that you're seeing the sell off -- for example is -- off more than 3%. On at this hour we are seeing some strength in the dollar. This is the Euro crisis -- -- all right Allan great man from Bloomberg TV thanks -- have a good day you Tutsis in.

This transcript has been automatically generated and may not be 100% accurate.

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