Netherlands, France Next Shoes to Drop: Groendahl

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July 8 (Bloomberg) -- Nordea Markets' Steen Groendahl discusses the European debt crisis with Mark Barton and Anna Edwards on Bloomberg Television's "Countdown." (Source: Bloomberg)

You have to be more worried about the unknown unknowns.

Portugal is a known unknown.

We know they have problems.

We know that they dealt with the problems that they have had.

The last report from the eu and the imf was upbeat.

Elsa political issues right now.

It looks like it is pretty much contained.

Again, they reception of government.

Long-term is the issue of the netherlands and france.

Those problems are there.

Everybody is talking about them.

The markets are not paying attention right now.

That's the next shoe waiting to drop.

Maybe it's not a contrast, that concern with what you see that underlie the eurozone.

An interview in the dutch press over the weekend, he said he sees green shoots.

Do you see them?

It is likely we are seeing them.

We are hearing from larger companies that is seeing a stabilization of self in southern europe.

It looks like it is pretty benign right now.

What we are seeing time and time again, when things have a pedal of tranquility, nothing happens.

No change happens.

That is when the problems start to resurface.

Take the issue around the necklace.

They are highly indebted on the private side and france, on the government side.

-- take the issues around the netherlands and france.

As i way you are going on the diet, the first few months are easy.

You are in for the long term.

I fundamental change of what they eat so to speak.

We are really not seeing that.

Business leaders said as much over the weekend, steve.

They said they criticized the president urging him to hold what they say is a change in regulation.

Can the public stomach cuts in public spending?

What does it mean when we think about france?

It is a very tricky question.

He came into office with a pledge he would change and he would get growth and he would change the fundamental outlook for france.

Since then, very little has happened.

There been a few minor packages on higher taxes and less spending.

Really nothing serious.

The crux of the matter is, wasted productivity.

The labor costs are too high in france.

There are much cheaper to to get things produced outside of france.

You really need to get to that growing and really do that in an honest way.

They are really not seeing they are talking to the population.

They need to change.

I need to tell the public honestly what it's all about.

There are too high wages for the amount of work.

There are two challenges you need to do.

Either work longer or get paid less.

Those are basically the two options.

None of them are being discussed.

What it means is, france, the interest rate you are getting is not that much higher than what you are getting elsewhere.

I would take a look at the risk involved.

What is at stake is risk.

You are not getting paid enough reward for the risk you are undertaking.

How does friday's job reports in the u.s. change our obsession of global equity and bond markets?

The friday job numbers to show their is momentum in the u.s. economy.

First and foremost.

That bodes well for equities.

We might see interest rates creep slightly higher on the back of that.

The situation in europe is fundamentally different.

We are seeing more growth in the u.s. and not so much in europe.

I would say it is definitely a positive.

As an asset manager, you jeff long equity positions and the u.s. but the less in the euro area.

Thank you for joining us.

This text has been automatically generated. It may not be 100% accurate.

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