LCPR's Eppink Says Draghi's Stimulus Plans Will Not Work(Audio)

for earnings. DALLA is currently down a hundred and twenty five points, has to be drop thirteen and NASACT declines to small cap six hundreds, down six points, and the U S ten yield at one point five six percent. Eight out of TENNIS to B sectors are lower, led by losses in industrials, materials and energy only. Utilities and healthcare gained down. Transports drop one point four percent, and as a biotechs outperformed rights twenty points and the VIX

is higher by eleven percent. Down. Leaders to the downside included Intel, American Express and Nike. Fractional games for Caterpillar, McDonald's and Microsoft, Southwest Airlines plunged eleven percent after its results, well eBay surged as much as twelve point three percent after its earnings, and finally, some of the names supporting after the belt tonight include Starbucks, A, T and T, Visa, Chipotle,

and Schlumberg. Live from the first breaking news dask on, Bill Maloney, Charlie Okay, thank you very much, Bill Maloney. And to hear live breaking news over here, Bloomberg Time Squawk. Ask you a w K squawk on your terminal. I'm Charlie Pellock. That's a Bloomberg business flash. This is taking stock with Kathleen Hayes and Grim Fox on Bloomberg Radio. Mario Draggy, the European Central Bank and interest rate policy to stimulate the economies of Europe. Here to tell us

more is Dirk jon Epink. He is a journalist and a Senior Fellow at the London Center for Policy Research. He can be followed on Twitter at d j E E p I n K and he also happens to be the author of a book entitled Empire of Little Kings inside the European Parliament. Thanks very much for spending time with us, Thank you for having me. Now just before we get into Mario drag in the U San Central Bank, and so one just get people a snapshot of what is it like to actually work inside the

European Parliament. What would be Is there an anecdote or a story that best describes the because I've read the book and I note that, you know, there are a couple sort of idiosyncrasies, like try getting elected as a member of the European Parliament from a country of which you are not a native. That's yes, that's actually what

I did. I was the first Dutchman to be elected in Belgium for the European Parliament, and legally spoken, it's possible, because the European Parliament even supports that sort of legislation to get elected in another country. But of course with all these different cultures, it's very difficult to get elected.

You have to first of all speak the language and set corently, you have to live there for quite some time to show people that you are part of their world and actually show them the least I was going to show the police that well, yes, actually I had to show the police in Belgium that I was really living in Belgium at a home there. So it's altogether. It's not not easy. For example, a Dutchman elected in

Belgium is difficult. I think it would be impossible for a German to get a German to get elected in Holland, or for for somebody from Ireland to get elected in the United Kingdom, or somebody from Spain to get elected in Portugal. Sold there there are in general seven hundred and fifty members of European Parliament, but only a few of them are re elected, really elected in a country which is not the country of their nationality. You had to change your accent, yes, because you know where Dutch

and Flemish are basically the same language. But there is a difference in intonation, which you would also find in the United States between a New york Or and somebody

from Tennessee or from Texas. So if as if as a New Yorker, you want to be elected in Texas or you would have a constituency in Tennessee, you have to slightly adapt your your accent, and the same thing you have to do in in Europe, because if a New Yorker like Trump wants to get elected in Tennessee and he sounds like Trump, then people will say well, he's not really from here, um is he part of us? So you get questions what as you have to get

their votes, so you have to create confidence. Talking about vote, what has been your reaction to the vote in the United Kingdom to leave the European Union. Well, there's something I really fear that would happen, because in the end the British were mobilizing all their celebrities to get the remains side to win, and I thought, when they have to do that all the time, something is wrong there.

And particularly I was very worried about the vote of of lower income people and voters because the driving force of that election, or that referendum rather was was was immigration. And although the British have their own immigration system, they got their borders, they are not part of an open space of free circulation of people. They were under the impression that this flow of people that came to Europe last year as over two million to Germany only would

finally also come to the UK. And so immigration was really the driving force that drove the British out of the EU. The European Union and the European Central Bank. Yeah, they don't always seem to see either eye do they Well, you see, the European Central Bank is part of the European Union, it's one of the institutions. But the Eurozone.

I always compare the Eurozone to somebody buying a secondhand car, because if you look at the countries, there are different philosophies on money, there are different philosophies on budget, economic thinking, budgetary thinking. So it is not an optimal current his zone. And if the secondhand card starts leaking, something is not working and you have to muddle through and trying to repair here fixed there another problem comes up, and that

is basically the euro Zone. Unfortunately, I have to say we should have started initially with a smaller group, more coherent, and then other countries could have joined when ready. We didn't do that. We started with all of us, everybody wanted to join, and now we have this problem. Do you foresee that Mario dragged his policy of bond buying

and stimulus. Will it actually work? Um? Not really? In European Parliament, I was member of the Economic and Monetary Committee asked him very often, you know this q E is now going to work because you're going to do it.

You're not going to taper anytime soon. I understand what he tries to do is to keep the Euro as a currency on his feet with a zero interest rate and with q E. That is the thing he can do because if not, if that would be a high interest rate and there would be not enough liquid means on the market, then basically many banks would get into trouble, and uh in institutions as well. And I always compare the Eurozone also to if if the United States you have a dollar and you would have a monetary union

with Canada, that would work. But if you then ask ask Mexico to join, would already be difficult. If you then ask Venezuela to join, I can assure you will be disaster. Thank you very much for coming in and spending time with us. Dirk jan Epink, journalist, Senior Fellow London Center for Policy Research and the author of Empire of Little Kings inside the European Parliament. This is Bloomberg.

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