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Speaker 1: Global business news twenty four hours a day. If Bloomberg

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Speaker 1: dot Com, the radio plus mobile last and on your radio.

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Speaker 1: This is a Bloomberg business flag from Bloomberg World Handquarters.

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Speaker 1: I'm Charlie Pellett. Stocks are trading lawer bouncing along the

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Speaker 1: bottom on this Thursday afternoon. Let's head right over to

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Speaker 1: the First Word Breaking news desk for today's afternoon call.

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Speaker 1: Here he is Bill Maloney. Good afternoon, Charlie. That's right.

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Speaker 1: US stocks are under pressure today on this busy day

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Speaker 1: for earnings. DALLA is currently down a hundred and twenty

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Speaker 1: five points, has to be drop thirteen and NASACT declines

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Speaker 1: to small cap six hundreds, down six points, and the

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Speaker 1: U S ten yield at one point five six percent.

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Speaker 1: Eight out of TENNIS to B sectors are lower, led

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Speaker 1: by losses in industrials, materials and energy only. Utilities and

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Speaker 1: healthcare gained down. Transports drop one point four percent, and

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Speaker 1: as a biotechs outperformed rights twenty points and the VIX

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Speaker 1: is higher by eleven percent. Down. Leaders to the downside

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Speaker 1: included Intel, American Express and Nike. Fractional games for Caterpillar,

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Speaker 1: McDonald's and Microsoft, Southwest Airlines plunged eleven percent after its results,

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Speaker 1: well eBay surged as much as twelve point three percent

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Speaker 1: after its earnings, and finally, some of the names supporting

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Speaker 1: after the belt tonight include Starbucks, A, T and T, Visa, Chipotle,

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Speaker 1: and Schlumberg. Live from the first breaking news dask on,

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Speaker 1: Bill Maloney, Charlie Okay, thank you very much, Bill Maloney.

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Speaker 1: And to hear live breaking news over here, Bloomberg Time Squawk.

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Speaker 1: Ask you a w K squawk on your terminal. I'm

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Speaker 1: Charlie Pellock. That's a Bloomberg business flash. This is taking

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Speaker 1: stock with Kathleen Hayes and Grim Fox on Bloomberg Radio.

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Speaker 1: Mario Draggy, the European Central Bank and interest rate policy

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Speaker 1: to stimulate the economies of Europe. Here to tell us

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Speaker 1: more is Dirk jon Epink. He is a journalist and

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Speaker 1: a Senior Fellow at the London Center for Policy Research.

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Speaker 1: He can be followed on Twitter at d j E

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Speaker 1: E p I n K and he also happens to

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Speaker 1: be the author of a book entitled Empire of Little

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Speaker 1: Kings inside the European Parliament. Thanks very much for spending

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Speaker 1: time with us, Thank you for having me. Now just

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Speaker 1: before we get into Mario drag in the U San

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Speaker 1: Central Bank, and so one just get people a snapshot

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Speaker 1: of what is it like to actually work inside the

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Speaker 1: European Parliament. What would be Is there an anecdote or

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Speaker 1: a story that best describes the because I've read the

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Speaker 1: book and I note that, you know, there are a

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Speaker 1: couple sort of idiosyncrasies, like try getting elected as a

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Speaker 1: member of the European Parliament from a country of which

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Speaker 1: you are not a native. That's yes, that's actually what

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Speaker 1: I did. I was the first Dutchman to be elected

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Speaker 1: in Belgium for the European Parliament, and legally spoken, it's possible,

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Speaker 1: because the European Parliament even supports that sort of legislation

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Speaker 1: to get elected in another country. But of course with

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Speaker 1: all these different cultures, it's very difficult to get elected.

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Speaker 1: You have to first of all speak the language and

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Speaker 1: set corently, you have to live there for quite some

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Speaker 1: time to show people that you are part of their

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Speaker 1: world and actually show them the least I was going

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Speaker 1: to show the police that well, yes, actually I had

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Speaker 1: to show the police in Belgium that I was really

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Speaker 1: living in Belgium at a home there. So it's altogether.

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Speaker 1: It's not not easy. For example, a Dutchman elected in

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Speaker 1: Belgium is difficult. I think it would be impossible for

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Speaker 1: a German to get a German to get elected in Holland,

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Speaker 1: or for for somebody from Ireland to get elected in

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Speaker 1: the United Kingdom, or somebody from Spain to get elected

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Speaker 1: in Portugal. Sold there there are in general seven hundred

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Speaker 1: and fifty members of European Parliament, but only a few

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Speaker 1: of them are re elected, really elected in a country

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Speaker 1: which is not the country of their nationality. You had

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Speaker 1: to change your accent, yes, because you know where Dutch

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Speaker 1: and Flemish are basically the same language. But there is

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Speaker 1: a difference in intonation, which you would also find in

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Speaker 1: the United States between a New york Or and somebody

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Speaker 1: from Tennessee or from Texas. So if as if as

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Speaker 1: a New Yorker, you want to be elected in Texas

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Speaker 1: or you would have a constituency in Tennessee, you have

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Speaker 1: to slightly adapt your your accent, and the same thing

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Speaker 1: you have to do in in Europe, because if a

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Speaker 1: New Yorker like Trump wants to get elected in Tennessee

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Speaker 1: and he sounds like Trump, then people will say well,

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Speaker 1: he's not really from here, um is he part of us?

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Speaker 1: So you get questions what as you have to get

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Speaker 1: their votes, so you have to create confidence. Talking about vote,

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Speaker 1: what has been your reaction to the vote in the

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Speaker 1: United Kingdom to leave the European Union. Well, there's something

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Speaker 1: I really fear that would happen, because in the end

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Speaker 1: the British were mobilizing all their celebrities to get the

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Speaker 1: remains side to win, and I thought, when they have

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Speaker 1: to do that all the time, something is wrong there.

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Speaker 1: And particularly I was very worried about the vote of

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Speaker 1: of lower income people and voters because the driving force

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Speaker 1: of that election, or that referendum rather was was was immigration.

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Speaker 1: And although the British have their own immigration system, they

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Speaker 1: got their borders, they are not part of an open

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Speaker 1: space of free circulation of people. They were under the

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Speaker 1: impression that this flow of people that came to Europe

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Speaker 1: last year as over two million to Germany only would

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Speaker 1: finally also come to the UK. And so immigration was

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Speaker 1: really the driving force that drove the British out of

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Speaker 1: the EU. The European Union and the European Central Bank. Yeah,

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Speaker 1: they don't always seem to see either eye do they Well,

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Speaker 1: you see, the European Central Bank is part of the

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Speaker 1: European Union, it's one of the institutions. But the Eurozone.

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Speaker 1: I always compare the Eurozone to somebody buying a secondhand car,

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Speaker 1: because if you look at the countries, there are different

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Speaker 1: philosophies on money, there are different philosophies on budget, economic thinking,

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Speaker 1: budgetary thinking. So it is not an optimal current his zone.

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Speaker 1: And if the secondhand card starts leaking, something is not

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Speaker 1: working and you have to muddle through and trying to

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Speaker 1: repair here fixed there another problem comes up, and that

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Speaker 1: is basically the euro Zone. Unfortunately, I have to say

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Speaker 1: we should have started initially with a smaller group, more coherent,

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Speaker 1: and then other countries could have joined when ready. We

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Speaker 1: didn't do that. We started with all of us, everybody

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Speaker 1: wanted to join, and now we have this problem. Do

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Speaker 1: you foresee that Mario dragged his policy of bond buying

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Speaker 1: and stimulus. Will it actually work? Um? Not really? In

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Speaker 1: European Parliament, I was member of the Economic and Monetary

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Speaker 1: Committee asked him very often, you know this q E

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Speaker 1: is now going to work because you're going to do it.

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Speaker 1: You're not going to taper anytime soon. I understand what

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Speaker 1: he tries to do is to keep the Euro as

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Speaker 1: a currency on his feet with a zero interest rate

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Speaker 1: and with q E. That is the thing he can

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Speaker 1: do because if not, if that would be a high

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Speaker 1: interest rate and there would be not enough liquid means

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Speaker 1: on the market, then basically many banks would get into trouble,

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Speaker 1: and uh in institutions as well. And I always compare

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Speaker 1: the Eurozone also to if if the United States you

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Speaker 1: have a dollar and you would have a monetary union

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Speaker 1: with Canada, that would work. But if you then ask

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Speaker 1: ask Mexico to join, would already be difficult. If you

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Speaker 1: then ask Venezuela to join, I can assure you will

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Speaker 1: be disaster. Thank you very much for coming in and

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Speaker 1: spending time with us. Dirk jan Epink, journalist, Senior Fellow

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Speaker 1: London Center for Policy Research and the author of Empire

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Speaker 1: of Little Kings inside the European Parliament. This is Bloomberg.

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Speaker 1: Bloomberg Taking Stock is brought to you by Witham Smith

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