Stocks Open Flat Due to Worries About Greece

Ellen Braitman analyzes the morning business headlines.
3:00 | 02/07/12

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Transcript for Stocks Open Flat Due to Worries About Greece
And there is the opening bell for this Tuesday February 7 hello everyone I'm Stephanie sigh in New York Dow futures were down ahead of the bell on worries about Greece. Joining me now to discuss all the business headlines at this hour is Alan -- -- from Bloomberg TV Ellen great to see you. Hey Stephanie good morning that's and we do seem to have the Dow currently opening up pretty flat several have been under a little bit of pressure as -- -- this morning. Now we got another massive strike in Athens Greece today with people protesting government cutbacks meanwhile. What is going on with the country's -- efforts. You're out no -- -- -- right hip Terry deadline deadline is our. I and it kind of thing as -- You know who they really -- like it house account because. Every thirteenth -- -- -- have to strike a deal waived their bondholders and that is because come march 20 at. You have a very big bond due meaning the government owes money that it does not have to pay. In addition to this deal is trying to work out the bondholders and we thought -- was gonna happen last -- and it did that it continues have -- talks with European leaders as well as with the -- now. Because the issue is is Greece going to do the austerity measures that are needed or not look as you're saying -- you've got this big strike that was going on today. Very workers for example you know museums really across the board because the government workers don't wanna take these cuts a lot of the -- -- we've heard. During the crisis and it's happening once again because. Again the company -- the country needs to take it's being told steeper measures in order to get the next round of bail out money. Like the same conversation you were having two months ago OK meanwhile Fed Chairman -- Ben Bernanke will be testifying before the Senate Budget Committee today at ten. Anything he'll be listening for specifically there. When we heard -- speak to congress last week he talked about. That pace of the recovery. Being frustrating least slow he said the US is vulnerable to shocks. They'll spend about -- -- speech really calling on congress as he has many times over the past year to cut the deficit. What's interesting is the day after he spoke we had that jobs report come out much stronger than expected the headline number in terms of job creation. The unemployment rate what was troubling when you dug a little bit deeper was the labor participation rates of one thing on -- to be curious about a lot of -- when he -- say. Is what -- jobs picture looking like because the number again at first blush to look stronger than expected. But how concerned is he there are about how many folks are out there in the workforce looking for or participating already having jobs. Okay let's under earnings we've got more than a dozen companies in the S&P 500 reporting today -- among them our parent company Disney. As well as generic Brad and Coca-Cola let's start off with Coke how they do. Recent -- did better than expected when you look at the number compared to a year ago that net income was actually down but that's because a year ago. Coke had an acquisition that was giving a boost to the numbers. One thing that was helping there. And continues to help. Is the overseas expansion -- particularly in Asia emerging markets for example. China and India giving growth there in the range of thirteen to 15%. Interesting also -- -- get caught my in the -- earnings report. Is that company which has been trying to save on costs is a lot of companies have. Talking about looking to save 550 to 650 million dollars a year over the next few years partly to deal. -- the surgeons had to deal with in commodity cost so cost cutting certainly after their Disney is going to be reporting after the close. Yeah we're gonna get to that -- a second let's talk about BP. You know -- he is being held by the fact that oil prices have come back you know were in that hundred dollar a barrel vicinity. So that certainly helped -- one thing that's interesting to his the company boosted its dividend. For the first time since restoring the dividend after the big gulf oil spill so that really. Kind of speaks to the fact that BP is a company that. Continues to come back and just produce an awful lot oil. OK let's get back to Disney a lot of people buzzing about a report out of the Wall Street Journal like you said they don't report earnings until after the bell today. But already the company really making headlines with this report possible plans for a new news network let's talk about. This -- of the journal have the story and not colleagues of mine hat might have. Gone out spoken to folks also went and what their hearing is that Disney and Univision are in talks and that they've been how many talks for about six months. To start -- -- for our English language. Cable news channel so Walt Disney get Disney would get a cable channel right obviously that's -- very -- news but not on the 24/7. Cable front. And for Univision it would be an expansion on the news front so. You know again what's interesting here is English language -- -- Univision of course very huge in the Spanish market. And down that potentially it would happen before the elections. Well don't ask me what's going on I'd -- to hear -- all right so we covering -- case. We're all fifty states are trying to reach a settlement -- banks over their foreclosure practices that some people might not -- well me myself included. Is that some banks are now offering up to 35000 dollars cash to homeowners -- stopped paying their mortgages and what's not there what's behind that. Rates a lot of moving parts on the on the morning trying to kind of reminiscent but we're just talking about increasing at this foreclosure deadline keeps coming and being moved ending lived -- -- live Christmas Day Friday was just -- yesterday. And we know that morning -- more than 41 states have signed on board that means up to nine have -- not that includes California Nevada and New York. I'm in terms of the story that you're talking about what we've been reporting is that some of the big lenders out there it does include JPMorgan Chase. Are offering delinquent borrowers big money sometimes more than 35000 dollars to leave their homes. And agree to a short sales of what sorts -- that's when you owe more than than than the home is worth. And the home the bank agrees we're gonna sell it for the price that we can get out we're not gonna foreclosed or venue allow you to stay there -- -- weekend. Come up with a steal and then sell the house -- one of the reasons here. Is that foreclosed homes take a lot longer to south on the and the short sales also not only do they happen more quickly. But you get a higher -- out there in the marketplace and you do on foreclosed property so for the bank if they have. A borrower in the home was willing to say. Clean -- house or keep the lawn trimmed before a potential buyer comes to look at it. They have a greater chance of selling that home and selling it for a bigger dollar amount so is worth it to have the participation all around their batting. And to actually pay off some one. Then it is to foreclose on the going to be interesting to follow OK interesting story here Wal-Mart is cutting the fat sugar and salt in some of its store brands what's behind their decision. -- so people may remember that last year Wal-Mart had a very big event I think it was in Washington -- Michelle Obama. Signing on to her campaign her anti obesity campaign so this is the next leg of that and what Wal-Mart is saying. Is they're gonna cut fat sugar and sodium from the store -- -- they're gonna make this big push in terms of marketing and getting his products out there. Dot com April so on the one hand you say you know this is really nice which of course it is because it means it here. Helping to provide more. Healthy food. For folks but of course there's always a strategic business issue at play as well so here for Wal-Mart it really seems to be to -- One if you have healthier products on the shelves. They are we're being told by analyst -- more likely. -- -- appeal to middle income consumer notches lower income consumers -- potentially get up another crop of folks and who to whom these products are renewed appeal. And also as we know wal mart's been making a push they want to build smaller stores in urban markets. Which of course can certainly help on the food front because in some cases you're talking about places where folks don't have access to fresh -- -- and Wal-Mart has become the leading in the fresh food market as -- fruits and vegetables. Well by doing this as well in terms of cutting down on things like fat and sodium is that they can most likely are more likely get some politicians on board. Wind their plans who might have otherwise relate. Oppose getting Wal-Mart in their -- As a great analysis of that story it really is much deeper than the headline there. Okay I wanna do something -- here Alan because markets -- -- opening lower today 2012 has obviously been off to a great start the Dow -- way above 121000. It's hard to believe just four months ago we were in bear territory so we pulled something out of our archives you actually let's take a listen what you said about four months ago. The Dow IC down. 13 of -- percent the S&P losing two tenths of a percent -- a lot of folks of course still waiting on Europe and we do not have that clarity -- the -- -- saying that look there are talks going on. About recapitalize in the bank -- of course there's no decision yet it seems like until we -- some -- that clarity we're gonna have is volatile my house. That is so interesting to see because it does yeah yeah. -- -- -- not a colony and that was the situation there. But we still have problems injuries we still -- -- in Europe and yet the markets are on fire what's changed. You know that's. Your question because we here have had the best start to the S&P were up about six point 7% year to date. Since 1987. And which seems to have changed. -- we don't have this clarity on bracelet you still have people predicting an increasing their predictions that Greece is not gonna make it. It may not stay in the -- you know we still we don't know we still have all those up question marks but. We do have the fact that the US avoided recession and six months ago people thought that could happen again. And we have growth and we have job creation not as strong as we want but certainly it's moving in a positive way. And some of the countries not just the US rethought that potentially there would be this. You know again possible recession it hasn't happened but what's interesting is even those stocks are doing so well. We have a story the other day looking at valuations price to earnings are what are investors willing to pay. And those valuations are down to levels we haven't seen since the 1980s late eighties because. It's that trepidation you know how much are you willing to pay for these earnings when you're not sure how much companies are gonna make -- six months and nine months. What really underscores how unpredictable. The economy is because of -- this sort of looming issues in Europe but at the same time all the sort of positive news we've seen. Since the beginning of the year here in the US and -- wildly on the spot like that off and I prop up his like it's -- we -- held accountable lot of happy to -- and it did to give -- -- -- the macro picture as well. Let's take -- more like -- the -- right now on this Tuesday trading down about 37 points just in the first ten minutes of trading. Ellen -- and from Bloomberg TV great to see -- always. Stephanie have a great day.

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

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