Browse content similar to 04/11/2011. Check below for episodes and series from the same categories and more!
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manslaughter. Those are the latest headlines for | :00:05. | :00:15. | |
:00:15. | :00:26. | ||
The headlines: World leaders scrambled to contain the eurozone | :00:26. | :00:33. | |
debt crisis as Greece's government teeters on the brink. | :00:33. | :00:38. | |
I am at the G20 summit in Cannes. World leaders are trying to beef up | :00:38. | :00:42. | |
the power of the International Monetary Fund, such that it can | :00:42. | :00:46. | |
stop the contagion to countries such as Italy and Spain within the | :00:46. | :00:52. | |
eurozone. Asian markets rise as Greece drops | :00:52. | :00:55. | |
plans for a controversial referendum. | :00:55. | :01:00. | |
Plus a new way of doing business or a new dot-com bubble? Loss-making | :01:00. | :01:06. | |
website Groupon has as -- is having its Nasdaq debut with a valuation | :01:06. | :01:16. | |
:01:16. | :01:20. | ||
of almost $13 billion. They had hoped to present a united | :01:20. | :01:25. | |
front and a solution to the eurozone debt crisis, t crisis, | :01:25. | :01:28. | |
leaders at the G20 summit I in damage limitation mode as they face | :01:28. | :01:33. | |
the possibility that the political turmoil in Greece would force it | :01:33. | :01:36. | |
out of the euro and threaten the single currency. Talks on Friday | :01:37. | :01:42. | |
are expected to focus on beefing up the power of the IMF, to provide a | :01:42. | :01:46. | |
fi fire Walk, basically to protect the likes of Italy and | :01:46. | :01:55. | |
Spain in the event of a Greek default. | :01:55. | :02:01. | |
It is damage limitation but it is trying to beef up the IMF. So we | :02:01. | :02:08. | |
had these very hefty firewalls in place. It was always accepted that | :02:08. | :02:12. | |
Greece in itself was going to be a containable problem, the debts of | :02:12. | :02:17. | |
Reiss which amount to something of a third of a trillion euros. If | :02:17. | :02:22. | |
confidence was lost, in Italy and Spain, it was understood that that | :02:22. | :02:27. | |
would not be a containable problem. Italy is the third largest economy | :02:27. | :02:34. | |
within the eurozone. So you look at the firepower of the stability | :02:34. | :02:39. | |
facility, which at the moment st ste trillion, and A Bit | :02:39. | :02:43. | |
Of mask shows you that the numbers do not stack up. Contagion is | :02:43. | :02:50. | |
exactly what is happening right now. Greek crisis have led raids on | :02:50. | :02:54. | |
Italian sovereign borrowings, so what the government pays to borrow | :02:54. | :02:59. | |
on the markets, too well in excess of 6%. It was always understood | :02:59. | :03:03. | |
that 6% was some kind of turning point, that that would be | :03:03. | :03:07. | |
unaffordable for Greece, it is paying that much on its debt, it is | :03:07. | :03:12. | |
possible that it cannot afford to be finance it. You might find that | :03:12. | :03:17. | |
it will be unable to pay its domestic bills. So the contagion | :03:17. | :03:22. | |
problem has already started. It is well under way. So the IMF, there | :03:22. | :03:26. | |
is talk about boosting the firepower of the IMF in order that | :03:26. | :03:32. | |
he can try to contain the problem. That is going to be the challenge. | :03:32. | :03:39. | |
A big challenge indeed. Reiss's teacher in the euro could | :03:39. | :03:47. | |
hinge on this confidence vote in parliament in Athens today. We have | :03:47. | :03:51. | |
a professor of economics at Athens University. Also a spokesperson for | :03:51. | :04:00. | |
the European Council. I guess the big question, what in | :04:00. | :04:04. | |
the world is going to happen today? Can decree government collapse | :04:04. | :04:13. | |
today? -- the Greek government. It is is isn really tell. | :04:13. | :04:20. | |
Most people expect that it is going to be a smooth transition, so the | :04:20. | :04:29. | |
party and the opposition will find a way to have a temporary coalition, | :04:29. | :04:34. | |
which is going to vote on the October agreement with the European | :04:34. | :04:40. | |
Union. After that, there is going to be elections called in about 4-5 | :04:40. | :04:45. | |
months. That is the most probable scenario. Right now, there is a | :04:45. | :04:50. | |
little bit of a game of chicken, where the two large parties did not | :04:50. | :04:53. | |
ing in this agreement. The main thing | :04:53. | :05:02. | |
to stress is that regardless of all the tactical moves, the strategic | :05:02. | :05:06. | |
decision of the vast mthe vast m the Greek people and the vast | :05:06. | :05:10. | |
majority of the Greek political parties, is they do want to belong | :05:10. | :05:15. | |
to the eurozone. In fact, that is why in the last couple of years, | :05:15. | :05:21. | |
the Greek people had been extremely patient in accepting all types of | :05:21. | :05:25. | |
extremely severe austerity measures, in comes had been decreased by | :05:25. | :05:35. | |
:05:35. | :05:35. | ||
roughly 40%, in some cases. Taxes have gone up. Four times, I'm going | :05:35. | :05:45. | |
to stop you there. Anybody mentioned -- mentioning a | :05:45. | :05:50. | |
member leaving the eurozone would likely be sent to the gallows. Is | :05:50. | :05:56. | |
the eurozone preparing to cut loose Greece? | :05:56. | :06:00. | |
In general, no. That is an extreme case scenario which remains | :06:00. | :06:06. | |
unlikely. The mechanisms, there is a lot of talk, we have Angela | :06:06. | :06:11. | |
Merkel, she has touted on it, Nicolas Sarkcolas Sark is a lot of | :06:11. | :06:18. | |
talk about the mechanisms. Is there such a thing as the mechanisms to | :06:18. | :06:28. | |
:06:28. | :06:28. | ||
allow an exit? There are no mechanisms in the treaty. That | :06:28. | :06:34. | |
would be a problem. But what has provoked in this discussion is the | :06:34. | :06:38. | |
possibility that Greece, through a referendum or otherwise, might say | :06:38. | :06:43. | |
no to a deal that was reached last week. What would the no actually | :06:43. | :06:49. | |
mean? It can mean that no that deal is insufficient, we want more loads | :06:49. | :06:54. | |
of a greater size, it could mean that, no, we do not want any | :06:54. | :06:58. | |
assistance, we can manage by ourselves, all we are going to | :06:58. | :07:03. | |
default, or possibly, we want to leave the euro. It is not what the | :07:03. | :07:07. | |
Greeks themselves want. But it raises those sorts of questions. | :07:07. | :07:16. | |
What does a no actually mean. That is why these questions come up. | :07:16. | :07:20. | |
The headlines over to last couple of days have all been political. | :07:20. | :07:25. | |
But at the end of the day, the fundamentals are still there. | :07:25. | :07:28. | |
Whether the Greek government survives, at the end of the day, it | :07:28. | :07:34. | |
is still going to struggle paying off its debt. That is . That is is | :07:34. | :07:39. | |
where the October agreement comes in. This is the end of a long road | :07:39. | :07:43. | |
in the last year and a half. Reiss has been trying to implement | :07:43. | :07:48. | |
unprecedented measures and at the same time, the EU has taken a | :07:48. | :07:53. | |
number of measures, what we are seeing right now is that we are | :07:53. | :07:57. | |
trying to solve the problems that the eurozone has, and has had for a | :07:57. | :08:03. | |
number of years, and the problems that Greece has had, nobody said it | :08:03. | :08:07. | |
was going to be easy, but the progress that had been made in the | :08:07. | :08:14. | |
last couple of years were very significant. But now it seems we | :08:14. | :08:20. | |
are at the very last stage, and if the October agreement goes through, | :08:20. | :08:25. | |
then this is an opportunity for a new start. As long as the | :08:25. | :08:35. | |
:08:35. | :08:40. | ||
politicians behave as they should. We are running out of time. | :08:40. | :08:47. | |
The big question, how is all of this affecting the markets? | :08:47. | :08:51. | |
We have seen a nice little bounce back on the markets. It is the | :08:51. | :08:58. | |
first time in about five days. What is the driver? As you can imagine, | :08:58. | :09:02. | |
it is the fact that Greece has now scrapped plans for that | :09:02. | :09:07. | |
controversial referendum, certainly a very positive reaction. All | :09:07. | :09:13. | |
across Asia, we are seeing the stock markets, some up as much as | :09:13. | :09:20. | |
3.3%. Many investors are doing exactly like their European and | :09:20. | :09:25. | |
American counterparts, rising on the news that there may not be a | :09:25. | :09:29. | |
referendum. It is the first rise in five days in Asia. People that I | :09:29. | :09:33. | |
had been talking to have been telling me that although Greek | :09:33. | :09:38. | |
politics may be in disarray, the fact that the referendum has been | :09:38. | :09:41. | |
scrapped, this potentially could mean that Greece could be closer to | :09:41. | :09:47. |