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Money Talks from The Economist

Money talks: Emerging market déjà vu

Money Talks from The Economist

The Economist

News, Business, Economy, Finance & Economics, Business News

4.41.2K Ratings

🗓️ 26 April 2016

⏱️ 11 minutes

🧾️ Download transcript

Summary

Commodities, emerging markets and inflation expectations may all have reached a turning point. Is it 1999 all over again? And we explore whether China's strategic ambitions in Africa are overstated

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Transcript

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0:00.0

Attention at all passengers. You can now book your train tickets on Uber and get 10% back in Uber credits to spend on your next train journey.

0:11.0

So no excuses not to visit your in-laws this Christmas.

0:16.5

Trains now on Uber. T's and C's apply check the Uber app.

0:24.0

The Economist. Hello, I'm Edward McBride, finance editor.

0:27.0

This week on Money Talks will discuss China's involvement in Africa.

0:30.0

It's been likened to neo-colonialism with loans to the continent reportedly exceeding even

0:35.2

those of the World Bank. But is the Middle Kingdom pouring as much money into Africa as we think?

0:40.2

James Miles, our China editor, is here to chat to us about that.

0:43.5

So inevitably we're going to see a slowing of loan growth to Africa and a slowing of Chinese investment in it.

0:51.5

But first, are markets going to party like it's 1999?

0:55.0

Yes, we were looking for any way to bring in a homage to Prince in this week's show.

1:00.0

But there are also some uncanny similarities between the market conditions of the late 90s and today.

1:05.0

Let's cast our mind back to those years when the dot-com boom was getting underway.

1:09.0

Hurricane Mitch ravaged Honduras.

1:12.0

The House of Representatives impeached US President. Hurricane Mitch ravaged Honduras.

1:12.8

The House of Representatives impeached U.S. President Bill Clinton.

1:17.1

The Senate will convene as a court of impeachment.

1:20.3

And emerging markets were in a dire state too.

1:23.0

Asia was in the throes of a crippling financial crisis.

1:26.0

Even Russia, which had been seen as one of the safest emerging markets,

1:29.0

defaulted on its debt, and the Rubel crashed.

1:32.0

But in spite of all that, Wall Street was still bullish.

...

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