the problems in southern europe spreading to northern europe. the enterprise is getting worse than john chambers had seen it. on top of all of that, all the stuff that issed about contin b be bad. they continue to work on the areas that they need to work on. wall street not happy with this guidance. >> yeah, thanks a lot and keep us posted on what happens on the conference calls. the stock is falling out in the after hours session on the guidance that is given on the conference call. we have a stock that traded well and anticipation of decent to good earnings and why should we be surprised at the lower guidance given what was said a couple weeks ago? >> not only was it well, but the may weekly that expired on the calls, over 40,000 traded and 40,000 of the may 20 calls expire next friday. options traders were setting up. the stock was up 4% on the year and down about 12%. the implied move was about 6 and moving on the last four quarters. 8%. here we are down about 8%. that is 20% off of this year's highs. that's a massive move for a big u.s. mul

you would see sovereign debt failures in southern europe, and you would see a cascading global financial crisis as the european banking crisis translated around the world and affect u.s. banks, of course. >> tom: are we too pessimistic about spain, or wise based upon experience from the past with greece? >> greece was the potential contagion to other parts of the euro zone, particularly across southern europe, and we've seen some contagion, so not just spain, but also about italy, which is a much larger euro zone member. it's about the contagion, and until people see the euro zone managed at some point to put in an effective firewall, people are going to be worried about the contagion. >> tom: we've got the election coming up in greece, the european ministers haven't made a lot of noise about spain. is spain too big to bail? >> to a point spain can be bailed out. the problem becomes if greece looks to exit the euro, an the pressure on spain becomes much more, then europe will have to go well beyond what it's already scheduleed to do, and the bailout fund towards unlimited liquidity and p

the bundesbank will listen its monetary stance to ease the crisis in southern europe, but that crisis shows no sign of abating in spain. the moscow times says a cloud has been cast over the russian aviation industry with a loss of its so-called superjet and 50 passengers over indonesia. deepwater domestica drilling rig began drilling. >> this is "newsday". >> the headlines this hour. roadside bomb has exploded near a convoy of u.n. ceasefire monitors in syria. >> barack obama has become the first u.s. president to back same-sex marriage. opposition will -- leaders in malaysia have criticized violence that broke out during a huge protest. there were pressing for electoral reform. speculation is growing that the government is about to call for general elections. here is our correspondent. >> each of the last 10 days, he has been writing down testimony. scores of people have come forward to speak to him to said they were beaten by police. >> they punched me and proceeded to set up on me and keep me. >> there is little agreement as to what exactly happened at the demonstration on april 28

, he also says that jews are inferior tour christians, within europe he says that people from southern europe like italy, are inferior to people from northern europe like germany and france. so he's got very specific ideas about hierarchy. and one of his biographers has said that gobineau hated all humanity. he hates almost everybody. and he's just full of this vitriol and makes the case over and over in his many publications. unfortunately his books are translated into many languages, he reaches a big audience in his lifetime. he gets translated into english in the 1850s, his essay on the inequality of the races and people who are pro slavery in america quote gobineau as an authority and say you know, the french also agree with us. whites are superior to blacks. of course you know, they leave out a lot of the other things that gobineau says. he had a strange obsession with eye color. he said that people who had blue eyes were superior to everybody else. and the photographs and portraits suggest he had brown eyes. this man has got lots of pathologies going on. pro slavery figures in america z

sovereign debt across southern europe. you would see more countries exiting the euro. spain, for example. italy even. you see major bank failures. and we would descend into a global financial crisis. there would be a freeze-up of bank credit around the world as a consequence. >> and we have seen something similar to that in the wake of lehman brothers, tyler, correct? >> yes. exactly. the money flew out of money market funds among other things at that time bringing one of them the prime reserve fund -- i can't remember which way it is, no matter, one of them went down. jeff kilburg, nigel has just laid out the worst case scenario. how likely do you think that is, number one? is it all priced into the value of assets today, number two? and number three, how do i protect myself? >> well, tyler -- >> not to lay it all on you. >> no. bring itd on. first and foremost we hope we don't have a scenario like that. you will see the vix absolutely spike. i'm not in the camp of the armageddon camp, i think there's enough money and liq

to ask is, in developed countries, there's a big difference between countries in africa versus southern europe. you have high unemployment in africa, undeveloped countries. i understand that. but in developed countries where you have high unemployment, i'm wondering, are the social safety nets that are much more liberal in europe versus the u.s., are they in any way responsible for the higher unemployment rate? i mean, is the state safety net kind of making it easier for people not to work? thank you. >> it's not really the issue of social safety nets, per se, but more perhaps in the way they are framed in europe in some countries of continental europe where essentially both the structure of social safety nets but especially the restrictions on hiring and firing. puts the number in the labor market so that we absorb the relatively high unemployment rates that we were talking before. so the challenge is how you reform the social safety nets in a way that they actually provide a greater incentive for this unemployed workforce to be able to look and to find a job. clearly in this current of -- in

imagine southern europe in recession for the next five to seven years in a worst case scenario. tyler, all the ripple effects that come with a huge portion of the world economy becoming so weak. >> and the question whether greece is the first domino that might ripple through to other countries in southern europe. >> in theory, if the ecb steps in, that shouldn't happen. but we don't know for sure. >> michelle, thanks. >> yeah. >> it's been a mixed picture for the airlines year-to-date. delta up 41%, united 27%. hawaiian air flat, southwest, jetblue, alaska, they're all down. today we're getting a report card of sorts on the carriers. phil lebeau on the phone from chattanooga. phil. >> tyler, this is the monthly on time or late arrival data that comes from the department of transportation. and there's good news when it comes to how the airlines did in march. let's start with the first three. the top performing on time airlines, hawaiian, air tran, u.s. airways, they have traditionally been near the top of the reports and they were in march. 82% of the flights arrived on time in m

southern europe is in a deep recession. france if they follow through with this is going into recession. we are a global economy. if one part of the world gets in trouble, we all feel the effects of it. >> steve for joining me from new york, thank you very much. >> as elections have brought sweeping changes in europe, today people in syria are also going to the polls. the assad government claims reform is underway. with violence continuing, to this -- opposition activists say it is not changing. we have this report from damascus. >> today's elections are meant to be proof syria is changing. the ruling party says it is ready to share power. he is one of the young new faces. most of the new are connected to the old. they would not be allowed to run if they were not. he says the door was open to everyone without exception. i am representing the youth and no one can win without popular support. he is not the only one that thinks that. syrians turning up here for the [unintelligible] >> the people are expressing their views. we'

reflects back to where the currency's going to go if you're a deep recession and have a recession in southern europe it will impact and slow german growth and if greece leaves it's gonna have a bigger impact and bigger drag on growth in europe and will filter into germany as well and ultimately the euro is $1.27 today to the dollar will go down. >> tom: maybe perhaps back to parody back to even? >> i don't know if we go back to parody but the trend is in that direction. >> tom: scott macdonald with mcs management. >> tom: more signs the housing recovery is re-building. more new homes were sold last month, compared to march. sales rose 3.3% in april, to 343,000 units. prices for new homes are up too. the median price, of $235,000 is up almost 5% from a year ago. the sales gains have helped home builders. their stocks are up roughly 30% this year. some analysts think they're still worth buying, as the slow and steady housing recovery continues. >> house recovery right any. so what we would do is take the weakness that has nothing do with actual housing so today we're seeing a lot of weakness on europe

house of cards and this is been this is been the big question ever since it became clear that southern europe was in trouble it was never about one country particular and it was particular not about greece assoon as the questions arise about greece then actually the big questions get raised what about spain what about italy these are the really big economies within some europe and within the euro zone and so when anglo merkel said if the euro collapses europe itself will collapse do you think that sort of prophecy almost coming true. it's very funny statement for the german chance to make because the euro the euro is the union the seventeen countries the european union is a union of twenty seven countries and growing and so for her to ally one with the other is a very curious thing to do it may be rhetorical over straight but it may also be that she sees the euro zone without that what happens in the european union probably she's got is that she says the euro equals europe but she also says austerity because europe so what you've got. very clearly not just in greece but across the euro zone n

thursday as part of its rescue package but that's one billion less than planned and struggling southern europe members portugal greece and spain all this year's. markets madrid's down eighteen percent since january on the exchange rates the euro's further against the dollar it's now near three months. and the ruble is retreating to the main chorus is today funny loyce wheat is edging back up to one hundred dollars off the morning but brant has gone back to hold near one hundred thirteen dollars a barrel bill and that's the business you're up to date now daniel thanks very much indeed more from you later. coming up. tretton to europe we also an american economic pundit if there is a way out after the headlines stay with us live this is r.t. in moscow. lead mission and free accreditation free transport charges free range missile free. free studio types free. the old free blog just plug in video for your media projects a free media dog to our teeth dot com. if. it is easy to. leave. subsists. mug. a litmus leg . of. the muck pit muck. this is all take good have you with the top stories now dozens

real sort of draconian ideological austerity drives that were imposed by european governments on southern europe and to some extent by the british government on its own people there was this really kind of odd theory that by. acting counter to the advice of most mainstream economists and pursuing austerity at a time when economics normally argues for at least short term expansion that somehow they would. bring business confidence back and create jobs and all sorts of things that economists said wouldn't happen they haven't happened while the united states we avoided that we had a stimulus it wasn't large enough but we didn't go on a crazy austerity drive the problem is that at the end of this year the way our fiscal politics are setting up we could have a kind of forced austerity as a result of either a bad grand bargain of some sort or the failure of politicians to do anything which would trigger a whole series of events that could damage the u.s. economy so you know it's complicated but basically the the anger that's already out there in the country even a festive in the tea party of the occup

the rest of -- southern europe is 25% unemployment. australia, which has been one of the stars of the world economy has run into a little trouble. china is slowing down. so it would be a really good time for the u.s. engine to get going again, but that doesn't seem to be happening. gwen: david, the jobs that seem to have disappeared somehow, will they ever come back or have we turned a corner into a different place now, in which we have to get used to assessing a shrunken economy? >> we will someday get back to full employment. the jobs will be different. we see the good news in manufacturing. some manufacturing jobs are coming back. manufacturing is one of the sectors that's adding jobs. but it's going to be a long time before we feel like everybody who wants to have a job has one. gwen: ok. well, thank you on that. now, you always cheer me right up. not exactly. well, on to politics. if you happen to live in new york or california or utah, say, and you don't make big campaign contributions, don't expect to see a lot of presidential c