China, President Trump, Europe discussed on Bloomberg Daybreak: Asia
Said it exactly right. Russian Senator Lindsey Graham in a taping of the CBS show. Sixty minutes says a talk removing Mr. Trump will be prob- Japan expresses concern that North Korea US arms agreement may not limit. The use of short range missiles US lawmakers moved to pass legislation to stop the president for moving funds in the name of national emergency. The president says he will veto attorney general of California announces and ten of a group of states filing suit against the president. Australia's prime minister Scott Morrison says he will strengthen the country's maritime border protection after saying that laws passed last week in parliament would weaken its boundaries UK Prime Minister Theresa may again pleads for unity before heading back to the EU for Brexit talks and US president Donald Trump's pick to be the next US ambassador. The United Nations has taken her name out of the mix. Heather Nauert saying that she'd been the center of talk about nanny citizenship. Global news twenty four hours a day on Aaron. Tick tock on Twitter power by more than twenty seven hundred journalists and analysts say more than one hundred twenty countries in San Francisco, I'm Ed Baxter. This is Bloomberg. Bryan, sir. All right. Thanks very much. Ed, our guest is Douglas Borthwick from macro intelligence. Douglas, the case for bearishness on the euro seems fairly strong yet. It seems to be stuck now right around a dollar thirteen. Now. What's supporting it? Well to be fair. I think that the case for euros has been going on for at least the last ten years certainly since the Greek crisis people's talk to the yield differential being one of the most important ones. But also, they skulk by weakness. It could be Italy. It could be Greece. Country. I think one of the interesting things that sort of keeping it up is actually where China's trading and dollar China. I think is going to be very very important when it comes down to the trade discussions. In fact, the White House when they came out and talked about it on Friday talked about how tech transfers important piece important and where the currency's going. I think it's very likely we see some sort of important statements regarding the dollar China's not going to weaken significantly. And so you'd seen appreciation of I just started going lower, the Chinese currency appreciating going forward that if that's the case, and the dollar is selling off relative to China that means the dollar has to sell off relative to Europe and relative to the yen. See see a lower dollar-yen in the back of higher euro. But the euro also sort of sitting there around these levels around this one twelve ninety level on the back of folks being really anxious, by Brexit while breakfast, certainly affects Britain, it's also going to affect Europe. And there's things ID there. Now one thing that was very interesting last week is that ECB's been our came out. And he talked about how you know what we could end up doing a little bit more TI T LT TR rose, which essentially the lending more money. Just in case. There's further downturn in the European economy. I think that's rather than putting that gives some sort of support to the euro. But I think the most important one is the fact that the Chinese may be sitting on top dollar China at the Chinese are selling dollars dollar China. That means that the they'd be buying years on the back end as well. I think. Allude to this just now, but people often talk about the damage, the Brexit will do to Britain itself in Britain's cutting it so knows despite its face. But what is the damage that could be done to Europe as well. Because many people out there saying that this is being really underestimated. I think it is being underestimated Europe's one of Europe's larger trade partners is the UK the UK does a tremendous amount of business with them. Which is why I think may sits there all the time saying, you know, what they're gonna come to the table one last time and give us a chance. That's obviously not happening that way back when Brexit was passed. I remember talk. I was on Kathleen show. Kathleen, hey show, and I talked about the fact that I think what's going to happen is the UK economy, or as strategy is going to be to make this look so absolutely miserable. That at some point there's going to be a demand for a second referendum now that everyone's more educated on what exactly this means, what Brexit means. And I think we've seen lots of trial balloons about second referendums coming up. You'll see a cabinet minister mentioned here, or there are you'll see discussion of it here there. But certainly may never talk about it. But I think that that's where we're going to come to is going to be a second referendum at some point. Because now folks are educated they're not seeing that the the lies centrally. Pushed out for the Brexit vote in the first place. Another people are educated. I think they will end up just not happening at all. And it'd be a complete waste of time for the last two years. Let's pop in a quick question here on the president and on China before we wrap, and basically it's does the president want to deal on China. But keep the wall for the next election. So he has something to appeal to the base on he can say, look, I fix China. And I'll I'll build a wall in my next term. Well, I think building a wall of the national emergency is going to be a lot more a lot more simple than negotiating with China when it comes onto the structural ownership of Chinese companies. So I think the wall is something that he needs to be show each Bill. The show is based that you know, what we've got a lot against us river battling against the Democrats. But we're getting it done fifty miles at a time. I think that's something. He's getting to show the base of the base of turnaround and say, you're thrown away, this idea of a wall. And you're you're not doing it at all. He's showing.