Live on Bloomberg TV

00:00WE HAD THE FED SAYING, WE ARE GOING TO INCREASE RATES ONLY TWICE THIS YEAR. THEN WE HAVE OTHER FED OFFICIALS SAYING WE MAY SEE INCREASES EARLIER THAN WE THINK. >> IT IS TOUGH BECAUSE WE HAVE MARKETS HANGING ON THE WORDS OF THESE FED OFFICIALS. YOU HAVE THESE HAWKISH STATEMENTS WHERE YOU KEEP APRIL ON THE STATEMENT. IN OUR VIEW , APRIL IS LESS OF A POSSIBILITY. I THINK THIS IS A TESTAMENT TO THE FLEXIBILITY OF CURRENCIES IN THE GLOBAL ENVIRONMENT. FRANCINE: ARE CURRENCIES THE NAME OF THE GAME IN THE NEXT MONTHS? COMMODITIES ARE VERY MUCH LINKED TO THE DOLLAR. OUR FEARS AND SHOCKS GOING TO BE PLAYED OUT IN CURRENCY MOVES? >> I THINK SO. EVERY CENTRAL-BANK , IT WORKS FOR THEIR ECONOMIC GOALS. CURRENCY IS WHERE THEY ARE SEEING MOST OF THAT ACTION. I CURRENTLY THINK CURRENCIES ARE THE NAME OF THE GAME. TOM: I GO TO BILL GROSS'S PHRASE "THE CLEANEST DIRTY SHIRT." IN FINANCE, INVESTMENT, AND INTERNATIONAL RELATIONS, IS IT JUST THAT THE U.S. IS THE SAFE HAVEN? >> I WOULD SAY SO. WHATEVER THE POLITICIANS SEEM TO SAY IN THE U.S., THE PEOPLE HAVE CONFIDENCE THAT THE U.S. HAS THE CAPACITY FOR UNDERLYING GROWTH. IT IS ALMOST AS IF PEOPLE DON'T PAY ATTENTION TO WHERE THE PRESIDENTIAL RHETORIC IS GOING. THE BIGGER FEARS ARE SOMETIMES OUTSIDE THE UNITED A FROM COMMENTS INSIDE -- OUTSIDE THE UNITED STATES FROM COMMENTS INSIDE. WHEN YOU FEAR PRESIDENTIAL CANDIDATES -- HEAR PRESIDENTIAL CANDIDATES DISSING TRADE DEALS, IT MAKES PEOPLE OUTSIDE MORE NERVOUS. TOM: IS THERE A REGIME CHANGE WITHIN THE EU AND WITHIN THE MINISTERS AS THEY MEET TODAY? >> IT DEPENDS WHAT YOU MEAN BY REGIME CHANGE. IF YOU MEAN A COMPLETELY NEW OUTLOOK OF THE NATURE OF THE THREATS EUROPE FACES AND WHETHER GOVERNMENTS ARE GOING TO MAKE REAL CHANGES, SADLY NOT. I THINK THE PRESSURES FROM THE RISE OF POPULIST PARTIES, THE PRESSURES FROM SLOW GROWTH AND HIGH UNEMPLOYMENT IN MANY COUNTRIES, AND THE WAY THE MEDIA IS PLAYING NOW IN THE WAKE OF THE FALLOUT FROM THE BRUSSELS ATTACK, GOVERNMENTS ARE TURNING INWARD TO A LARGE EXTENT. THERE IS A LOT OF POSTURING. WE ARE STILL IN A CAUTIOUS PHRASE. TOM: FRANCINE, THAT SPEAKS TO YOUR STERLING CHART YOU HAD EARLIER. IT IS A SET OF LOWER HIGHS. FRANCINE: YOU ARE ABSOLUTELY RIGHT. THIS IS A THEME WE HAVE BEEN TRYING TO EXPLORE EVEN BEFORE THE LATEST POLLS, WHETHER YOU TALK BREXIT OR DONALD TRUMP. IT IS BECOMING MUCH MORE DIFFICULT TO BECOME A MODERATE POLITICIAN IN TODAY'S WORLD BECAUSE OF SECURITY, GROWTH CONCERN, THE ECONOMY -- IT IS BEING PLAYED OUT IN THINGS WE HAVE NOT SEEN IN THE PAST. I WANTED TO GET BACK TO THE SUPREMACY OF THE U.S. GOLDMAN TOLD THE FED YESTERDAY, STOP WORRYING ABOUT DOLLAR STRENGTH. DOES DOLLAR STRENGTH BUT THAT MUCH PRESSURE ON THE U.S. ECONOMY? >> IT IS A BIG CONSIDERATION FOR THE FED. THE FED IS LOOKING AT FINANCIAL CONDITIONS, ASIDE FROM THEIR DUAL MANDATE. THE DOLLAR HAS BEEN ON A RIP ROARING 2015, STILL STRENGTHENING THIS YEAR. THE U.S. IS A PRETTY INWARD FACING ECONOMY. TOM: WE WILL CONTINUE HERE ON

No schedule data available.

BTV Channel FinderWatch BTV in your area

Currencies Take Center Stage in a Central Bank World

Nandini Ramakrishnan, global market strategist at JPMorgan Asset Management, and Robin Niblett, director at Chatham House, discuss the sensitivity of currencies to central bank policies and the strength of the U.S. dollar. They speak on "Bloomberg Surveillance." (Source: Bloomberg)

More From Bloomberg Surveillance
All episodes and clips

Bloomberg Markets
"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
More episodes and clips