Zettelmeyer: Trump May Regret Wanting Weaker Europe

The video discusses the political landscape in Germany, focusing on Martin Schultz as a challenger to Angela Merkel and his potential impact on stability. It also examines US-Europe relations under Donald Trump, suggesting he may prefer a weaker Europe. The discussion shifts to central bank policies, particularly the balance sheets and tapering strategies of the ECB and the Fed. Finally, it addresses the impact of political risk on financial markets, noting that despite increased political uncertainty, market indicators do not fully reflect this risk.

What is Martin Schultz's role in the German political landscape?

• He is a member of the opposition party.

• He is a new leader with vastly different policies.

• He is an independent candidate.

• He is a challenger to Angela Merkel with similar policies.

How does Donald Trump view international relations?

• As collaborative efforts.

• As zero-sum games.

• As irrelevant to the US economy.

• As opportunities for mutual growth.

What is advised for central banks during times of uncertainty?

• Completely halt all changes.

• Increase the speed of structural changes.

• Slow down the speed of any changes.

• Maintain the current pace of changes.

What is the general perception of political risk in Europe according to the transcript?

• Political risk is decreasing.

• Political risk is stable.

• Political risk is increasing.

• Political risk is irrelevant.

What does the spread between Germany and Italy indicate?

• A stable Italian banking system.

• A decrease in political risk.

• An increase in political risk.

• A strong German economy.