Federal Reserve, CEO, Soccer discussed on Bloomberg Daybreak: Europe


Meanwhile, Chelsea boss mercy. Sorry spent a long time with his players in the changing room of the Bank thrash four million for a month to get answers to a number of questions. We'd have the fees does it team, but as individual players, and then we still failed. So. Trouble understand why elsewhere Tottenham came from behind to win two one against what fed at Wembley and Crystal Palace had Wilfred czar sent off towards the end of their one one zero at Southampton. Celtic a six points clear at the top of the Scottish premiership this morning. The champions were to when as I am to send Johnston ranges will be a way to kill Monica me fifth round of the Scottish Cup. It's after a comfortable three one win at league. One Cowdenbeath last night. Okay. That was calling Besley with this sports update to that. Let's turn to our guest this hour. Soccer navy has just sat down here in the London studio. He's CEO at Hermes investment management. Thanks so much for being here. Soccer. A pleasure to have you here. Thank you for having good morning. Now, what did to kick it off with the Federal Reserve did the Federal Reserve out of your expectations. I think we were certainly surprised that I think here is the surprise the language that he used about. The US economy itself was interesting. We went from from strong last month to in a good place this month the language used allusion. It wasn't threat. But about tightening conditions says that he's looking at how equity markets are behaving which was interesting, and he clearly highlighted the effect of the trade disputes and the slowdown in China and in Europe as the crosswinds referred. To and interestingly the possibility of hard Brexit. I mean, even brought that up just being something that might that might be shopped the system, but is this a Federal Reserve from your perspective that is taking its marching orders from securities markets from asset prices. No, I think this is a Federal Reserve the realizes that perhaps there's a pause in the world because things are not quite going as plant, and I think what they're doing is quite wise. Now, they want to make sure that I mean what we see now is that they will stop the acting cycle for now. I'm probably they will make sure that if they do something it'll be something to do with quite quantitative tightening will slow down, which is which is valve ask people about the beginning to worry about a actually a general slowdown. I mean, remember Europe is low down. It's an it's probably in a technical recession China slowing down, and and they just want to wait and see. So that they don't speak, but it surprised us because we expected that other couple of hikes to come through what about the balance sheet reduction, then before we talk about sort of Ray tugs going forward. What? Specifically, what effects are you seeing from the language that we saw regarding the balance sheet reduction? I mean, he was essentially saying it could be coming to an end it could be tailing off going forward. I mean, which is which is interesting one. Because that is that is how they can control. It is so that controlling interest rates and the suction that the going rate that they will continue for awhile was in fact negated yesterday by him by saying that's the first thing that look at. And I think again that was taken positively by the markets. All right. We'll continue this conversation in the next block soccer..

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