What's the Big Idea? It's the Return of the Zombie Company

The video discusses the concept of 'zombie companies,' which are firms unable to cover interest payments with earnings. Barnaby Martin from Bank of America Merrill Lynch highlights how central banks' policies lead to capital misallocation, allowing these companies to survive. The video examines the prevalence of zombie companies in Europe and the UK, noting Brexit's impact. While these companies' survival supports employment and growth, it also complicates exiting low-interest environments.

What is the main argument presented by Barnaby Martin regarding central banks' recent actions?

How does Barnaby Martin define a 'zombie company'?

What trend has been observed in the number of European zombie companies since 2016?

What impact does Brexit uncertainty have on the number of zombie companies in the UK compared to Europe?

What are the potential consequences of the existence of zombie companies in the economy?