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Money Talks from The Economist

Money talks: Super Mario to the rescue

Money Talks from The Economist

The Economist

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

4.41.2K Ratings

🗓️ 6 June 2017

⏱️ 14 minutes

🧾️ Download transcript

Summary

As the European Central Bank meets in Estonia this week, is it time for Mario Draghi to withdraw support from the Eurozone economy? Emerging Markets Editor Simon Cox on why the BRICs label is still relevant. And, how investors are taking care of the planet. Simon Long presents

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Transcript

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0:00.0

This is a passenger announcement. You can now book your train on Uber and get 10% back in credits to spend on Uber eats.

0:11.0

So you can order your own fries instead of eating everyone else's.

0:15.0

Trains, now on Uber. T's finance editor and you're listening to money talks on this week's

0:34.6

program why the European Central Bank will continue to prop up the Eurozone

0:39.1

despite its recent impressive economic performance. Even Italy's doing pretty well.

0:44.0

Its growth in the most recent quarter which have data for is actually better than either America or Britain.

0:48.0

Now investors are taking care of the planet.

0:51.0

Commercial banks issue these green bonds in order to then use the proceeds to make loans to for example build wind parks.

0:58.0

The bricks economies, an idea whose time has come back.

1:01.0

These four economies suddenly started thinking of themselves as a group

1:05.0

and they started having regular meetings.

1:07.0

But first, not long ago the meeting this Wednesday and Thursday of the European Central Bank

1:14.4

was expected to mark a turning point. As part of what was seen as a global trend

1:19.1

towards tighter monetary policy, the ECB was expected to signal the winding down of its program of quantitative easing

1:26.0

or QE, under which it's buying 60 billion euros worth of bonds each month.

1:31.1

John O'Sullivan, our economics editor, has been looking ahead to this meeting.

1:34.3

Hello, John.

1:36.1

Is this meeting still being seen as a turning point?

1:38.4

No, it's pivotal in some sense that once a quarter the ECB staff comes out with a new forecast and they're likely to

1:46.3

nudge up their forecasts for growth and maybe nudge down their forecasts for inflation.

1:52.0

But at the beginning of the year I think a lot of people

1:55.1

had looked at the June meeting as the one where the ECB would start to signal that it was

...

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