Ed Ed Baxter, United States, Robin Brooke discussed on Bloomberg Daybreak: Asia


Ministry. Foreign affairs spokeswoman says I also saw the New York Times report, it seems that certain people in the US are sparing no efforts to win the Academy Award for best screenplay. I have three advices for them. I New York Times should know that such report just provides another piece of evidence that the N Y T is making false news fake news fake news. That's her word second. She says he could becoming a to use a Chinese phone. She says security is much better. Global news twenty four hours a day on air a tick tock on Twitter power by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries in San Francisco, I'm Ed Baxter. This is Bloomberg Bryan, sir. And she had even more of a twinkle in the eye than you did when you just reported. Oh, she did. Yeah. That's great. All right. Thanks, very much, Ed Ed Baxter. The time is nine minutes past the hour. Let's say good morning to Robin Brooke's, managing director and chief economist with this firm, Robin. Thanks very much for joining us. We can talk a little bit about the weakness in the on. But I wanna talk a little bit more about this strength in the dollar and the challenge that that poses for emerging markets at twelve hundred on the Bloomberg dollar spot. It's a sixteen month high. Are we breaking out now? Well, thanks for having me on. So just to give you an idea. Obviously this year has been very difficult for emerging markets. Life by Turkey and Argentina the year started with those currencies and some others in emerging markets being seriously misaligned being seriously overvalued against the US dollar. That's over. In fact, if anything many emerging market currencies are screening, cheap at this point. And so for for the most part, we think the emerging market Ralph and therefore dollar strength against emerging markets done. So how about on the Yuan is this a reflection of dollar strength or is this a competitive devaluation as we creep towards seven. Think about if the United States impose tariffs on the euro. Example, right. Then it would be perfectly natural for the euro to depreciate in response to that negative shock to economy, and it would depreciate against the dollar. So that's a freely floating currency, and that would be what would happen. So in the case of the you want if we think about that being increasingly freely floating, it would be perfectly natural to think of the on. Appreciate an impact, but it should. In terms of overall risk. I've got a lot of negatives and not many positives lower maybe a positive, but the dollar higher costs a trade war raids downgrades and earnings oil prices. This is not a time to take on more risk is it. I think where disagree with market is is on one thing, and particular I think what started this SAP selloff is a misperception of the fed. If you remember the up started in.

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