President Trump, Ovechkin, Brazil discussed on Surveillance

Automatic TRANSCRIPT

Vocabulary literally just started talking travis boyd hopkins about high school kids come on the president imagine ovechkin but make america ice hockey fan wrong okay let's talk brazil with gabriella should we talk brazil okay governor sensus joining us from j p morgan asset management global market strategist very confused wondering what on earth is going on in this studio gabby let's just talk about brazil brazil are intervening in the effects market without much success at the moment i'm ems under some significant stress arbed say relative to our has been in the last year why don't they hiking interest rates so let's think about why brazil's under pressure right now i would say two things the first is the broad us dollar strength really since mid april in brazil seen as a bit vulnerable to that given its very large fiscal deficit so that's one thing central bank hiking actually exacerbates that problem the second reason brazil's under pressure right now is because the investment thesis is falling apart for this year growth has been slashed growth expectations and there's more of a probability of an shall we say non business friendly candidate win in october central bank hiking actually doesn't fix either of those problems either so they are pushing back against this narrative that raising rates is gonna fix any of the problems perhaps even exacerbate them and let's remember that inflation in brazil is actually very very low at the moment so just to discuss him more broadly there are calls for help from emerging markets from the central bank governor of indonesia the central bank governor of the rbi in india patel essentially asking the fed to do something but the do something is interesting to me because it's not slow down rate hikes it's slowed down the pace of balance sheet reduction why is balance sheet reduction so important to em right now in a way that maybe some people didn't anticipate.

Coming up next