Is Portugal the Next EU Crisis?

The video discusses the potential downgrade of Portugal's sovereign debt by DBRS and its implications. It highlights safety mechanisms in place, such as ECB backstops, to prevent a crisis. Experts provide insights on market reactions, comparing the situation to Greece's past crisis. The discussion also covers the importance of fundamentals and risks, including Brexit's impact on the European project.

What is one of the safety mechanisms mentioned that banks can use in response to a potential downgrade of Portugal's sovereign debt?

• Increasing interest rates

• Issuing new bonds

• Reducing loan issuance

• Using other types of collateral at the ECB

What is the main concern of the expert who disagrees with the idea of a muted market response?

• The impact on the US market

• The lack of ECB intervention

• The potential for a broader banking crisis

• Political pressure on Portugal

How does the expert compare the situation in Portugal to that of Greece?

• Portugal is in a worse situation than Greece

• Portugal's issue is more contained than Greece's

• Greece's situation was purely economic

• Portugal has no safety mechanisms in place

What is a potential risk mentioned in the final section that could affect the European project?

• A trade war with China

• Brexit

• The rise of cryptocurrency

• A new financial crisis in the US

What is the expert's view on the performance of Portugal's bond market compared to other eurozone countries?

• Portugal's bond market is stable

• Portugal has outperformed most countries

• Portugal's performance is similar to Greece

• Portugal has underperformed compared to most countries