Snip ~ "U.S. stocks tumbled on Wednesday and Italy's borrowing costs rose to a level viewed as unsustainable, prompting German Chancellor Angela Merkel to warn that deep structural reforms were needed for the euro zone. Unlike Greece, Italy's economy is seen as too large for the European Union or International Monetary Fund to bail out"November 9, 2011
Analysis: Europe's debt crisis to shake corporate America
Boston, The shock waves of Europe's debt crisis will take a toll on corporate America, particularly sellers of cars, consumer products and basic materials that generate significant revenue on the continent.
The crisis that this week claimed the heads of the Greek and Italian governments is threatening to throw Europe into recession, and has U.S. companies from General Motors Co to Emerson Electric Co scrambling to find ways to reduce their risk.
GM, the No. 1 U.S. automaker, which gets about 17 percent of sales in Europe, on Wednesday warned that it no longer expects to break even in the region this year, with Chief Executive Dan Akerson blaming "Europe's economic morass."
Industrial conglomerate Emerson, which generates about 20 percent of its sales in Europe, plans to focus all of its 2012 restructuring efforts on the continent.
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"Europe is definitely going to be a problem," Emerson CEO David Farr told a conference on Wednesday. "I expect Europe next year to be very challenging for us. But I expect them to resolve this and start dealing with their issues long term."
U.S. stocks tumbled on Wednesday and Italy's borrowing costs rose to a level viewed as unsustainable, prompting German Chancellor Angela Merkel to warn that deep structural reforms were needed for the euro zone. Unlike Greece, Italy's economy is seen as too large for the European Union or International Monetary Fund to bail out.
The crisis could push Europe into a mild recession and hit demand for everything from Big Macs to corporate computer servers, said Peter Sorrentino, senior vice president and portfolio manager at Huntington Asset Advisors in Cincinnati.
"It will impact a lot of the major U.S. exporters, split out between technology and the consumer side. The McDonald's of the world are going to feel this," he said.
"You might see some order-book erosion, literally across the board, from GE to Hewlett-Packard and IBM as well. This is big enough that it could .
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