WEBVTT - Markets Weekly: Gold’s Surge, Yen Intervention, and Fallout From a Weaker Dollar

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Welcome to the Melton Talks Mony news round up, where

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<v Speaker 2>we talked about the biggest moves and markets this week

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<v Speaker 2>and was driving them. I'm join Stepbeck, senior reporter of

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<v Speaker 2>Bloomberg and author of the award winning Money Distilled newsletter,

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<v Speaker 2>and joining me in the studio while Merton is away again,

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<v Speaker 2>it's Marcus Ashworth. Marcus is a regular here. He's a

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<v Speaker 2>Bloombergy opinion columnist with deep expertise in European markets. He's

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<v Speaker 2>also the guy phone whenever I want to ask anything

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<v Speaker 2>about bonds and all round useful contributors to the show.

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<v Speaker 2>So hello Marcus. Great to be with us again. I

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<v Speaker 2>was thinking about what we should talk about this week. Well,

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<v Speaker 2>like I wasn't thinking what we should talk about this week,

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<v Speaker 2>because what we should talk about this because pretty obvious

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<v Speaker 2>because gold is up through fave those and five hundred

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<v Speaker 2>dollars and owns as we speak this morning, which is

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<v Speaker 2>not necessarily coming. I thought we would be earlier in

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<v Speaker 2>the year.

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<v Speaker 1>Yeah, if you think about everyone's target for the end

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<v Speaker 1>of this year was basically five thousand, and we're ten

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<v Speaker 1>percent above that. We're not even the end of January

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<v Speaker 1>that we are generally give that. But one here is

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<v Speaker 1>that you know, where is where does this stop? We

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<v Speaker 1>just had the World Council of Gold Council's stats out

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<v Speaker 1>uh and within that also there was an interesting view

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<v Speaker 1>on central banks in particular which it doesn't seem to

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<v Speaker 1>me Barb poland we can come back on that that

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<v Speaker 1>there has actually been that much central bank buying driving

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<v Speaker 1>gold up. This is all catch up. For the last

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<v Speaker 1>two or three years you've seen eachtf whole basically being

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<v Speaker 1>net sellers and retail have not really not been that involved.

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<v Speaker 1>This is private and switch for central bank clearly, you

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<v Speaker 1>know from onwards Russia and now it's seemed proponent buying

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<v Speaker 1>lots of gold is shifted away from them in the

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<v Speaker 1>biggest buyers very much. You catch up and it's speculation

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<v Speaker 1>and look, at some point this is all going to

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<v Speaker 1>go horribly wrong. Calling the top is a fool's game,

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<v Speaker 1>fool's gold even And you know, really I can't explain

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<v Speaker 1>it other than the fact that lots of people seem

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<v Speaker 1>to think it's about dollar debasement, which it isn't. But

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<v Speaker 1>you know, we can get onto that in a minute.

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<v Speaker 2>But Yeah, silver.

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<v Speaker 1>Has got a slight shortage and definite squeeze going on.

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<v Speaker 1>But you know, mining production is up quite a lot,

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<v Speaker 1>Recycling is up a little bit as well, finding enough

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<v Speaker 1>jewelry usage is down for gold, as you would expect

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<v Speaker 1>people doing stick a shock on that. And that's the point.

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<v Speaker 1>When do investors get stick a shock at five and

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<v Speaker 1>a half six thousand, where is it they actually go?

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<v Speaker 1>Do you know what do I want to be in

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<v Speaker 1>at the top asset management? I don't think I really

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<v Speaker 1>want to be buying it many more here? See what

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<v Speaker 1>for the moment I was loving it?

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<v Speaker 2>Yeah, And I mean one I suppose one thing I

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<v Speaker 2>would ask about and dollar debasement because obviously if you

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<v Speaker 2>look at the dollar, I mean, it's going down a

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<v Speaker 2>bit this year.

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<v Speaker 1>But it's still you don't think it's dollar debasement, it's not.

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<v Speaker 2>Yeah, it's historically still relatively expensive. The dollar has been

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<v Speaker 2>much much lower than less in the last twenty.

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<v Speaker 1>Is you've got to separate usage of dollar, yeah, which

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<v Speaker 1>is the strong currency policy actually of what the US

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<v Speaker 1>administration talking about, and then the actual value of it.

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<v Speaker 1>And there's no about it. If you look at the

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<v Speaker 1>S and P winning seven thousand. This is not about

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<v Speaker 1>selling of US assets or selling of the US dollar

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<v Speaker 1>per se. It's hedging of exposure to your dollar. It's

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<v Speaker 1>been a lovely trade for the rest of the world

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<v Speaker 1>the last two or three years by US text dogs

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<v Speaker 1>whatever it is. And also be long dollar. Don't hedge

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<v Speaker 1>your dollar exposure. Now the trade still works, except you

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<v Speaker 1>really do want to hedge your dollar exposure. And that's

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<v Speaker 1>not dollar debasement, that's just overvalue dollar. And I think

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<v Speaker 1>that's common sense.

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<v Speaker 2>See, I think that's a key point more because obviously

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<v Speaker 2>you I mean, this is what was called US exceptionalism,

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<v Speaker 2>and that has ended, and that it's no longer kind

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<v Speaker 2>of comforting. As you see you have seventy percent of

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<v Speaker 2>your equity exposure in the S and P five hundred

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<v Speaker 2>and you know all of this as you see onhedged.

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<v Speaker 2>Basically everyone has just been owning the US because there

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<v Speaker 2>has been no other alternative.

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<v Speaker 1>And know they longer currency as well. You've got to

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<v Speaker 1>separate it from only the asset, which I still think exists.

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<v Speaker 1>I do think, you know, the S and P has

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<v Speaker 1>got more to go. Look at the FED. The FED

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<v Speaker 1>are actually fairly confident on inflation. Okay, they're not rushing

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<v Speaker 1>to cut interest rates because the economy is so strong,

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<v Speaker 1>the stock market is still so strong, it's still got

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<v Speaker 1>the best companies in the world. It's still going to

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<v Speaker 1>do very well. Will other countries do better, possibly, But

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<v Speaker 1>that's you know, you know, the emerger markets certainly listened

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<v Speaker 1>to some my aspects there, but that is a conscious

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<v Speaker 1>risk choice. The question is do you want to own

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<v Speaker 1>US assets absolutely great yields and treasuries, great liquidity, great

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<v Speaker 1>stock markets, blah blah blah. Do you want to own

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<v Speaker 1>the double bet which is own list And if you're

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<v Speaker 1>a foreign investor being naked long dollar out right, probably

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<v Speaker 1>not anymore. That is how I think you have to

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<v Speaker 1>separate the two things.

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<v Speaker 2>Yeah, and I mean that makes a lot of sense.

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<v Speaker 2>I mean, if you're a steling investor, I mean you

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<v Speaker 2>may not have noticed, you but obviously the pound against

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<v Speaker 2>the dollar has gone from one thirty five to one

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<v Speaker 2>thirty eight this week. You don't, let's say, you're not

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<v Speaker 2>going to instantly notice that in your portfolio. Of the

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<v Speaker 2>pound does keep going up against the dollar and you

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<v Speaker 2>haven't hedged that exposure in some way, then it's actually

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<v Speaker 2>going to act as quite a big drag on your returns,

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<v Speaker 2>so can see you could definitely see that as an issue.

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<v Speaker 2>I mean, I suppose I would also say that they're

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<v Speaker 2>probably I would argue that the play is an element

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<v Speaker 2>of wanting to hedge against US political uncertainty, which I

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<v Speaker 2>don't see is being the same as fleeing it. It's

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<v Speaker 2>more just, Okay, I've been comfortable having all of my

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<v Speaker 2>eggs in this one basket, and suddenly they're starting to think.

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<v Speaker 2>I said, does it make sense to have all it's

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<v Speaker 2>going on?

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<v Speaker 1>And since twenty Since twenty twenty, I mean it's been

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<v Speaker 1>a sleep trade. If you've been a long here's me,

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<v Speaker 1>all of a sudden you've got to wake up and think,

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<v Speaker 1>hang on second one, is there better alternatives elsewhere? And

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<v Speaker 1>to do I want quite so much exposure? Or in

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<v Speaker 1>that way, kaiso exposed to the currency if you're still

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<v Speaker 1>confident holding the underlying assets bit bonds or or stocks.

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<v Speaker 1>I think US bonds are great value. I think US

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<v Speaker 1>stocks are probably still the place large larger to be

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<v Speaker 1>the dollar itself. I think you have to be slightly

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<v Speaker 1>careful getting too bearish on it because it's underlying got

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<v Speaker 1>a lot of so much economic strength that I think

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<v Speaker 1>it's a difficult short Do you want to head some

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<v Speaker 1>of your exposure a foreign investor, Absolutely, and you know

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<v Speaker 1>there are alternatives, particularly in emerging markets, I think, which

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<v Speaker 1>are make for the sensible investment if you're a US investor.

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<v Speaker 1>But reality is, I don't think the dollar's going up

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<v Speaker 1>and I don't think it's going down too much. But

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<v Speaker 1>you know, for choice, I think this is a trend

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<v Speaker 1>which will we will see more dollar weakness at the

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<v Speaker 1>coast of the next three months.

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<v Speaker 2>I suppose the other thing I would ask about precious

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<v Speaker 2>metals particularly, but it is sort of all part of

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<v Speaker 2>this reconfigure portfolios because obviously, if you look back over

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<v Speaker 2>the last year and actually he's getting on for close

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<v Speaker 2>to two years now, the rest of the world has

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<v Speaker 2>been catching up with the US. And so I was

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<v Speaker 2>reading something interesting from Steen Jackibson, who's an analyst over Guys.

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<v Speaker 2>I can't remember, think it's Rubble Bank, but he was

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<v Speaker 2>talking about who the it's on this topic, the euro

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<v Speaker 2>US dollar exchange rate, and it's a chating thing. And

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<v Speaker 2>I know the charts are a little bit you know,

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<v Speaker 2>people don't always think people think charts are just like astrology.

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<v Speaker 2>But he was pointing out bunch of lines, a bunch

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<v Speaker 2>of lines. So he was pointing out the euros now

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<v Speaker 2>it is two hundred month moving average against the dollar,

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<v Speaker 2>and if it breaks up above that, so this is

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<v Speaker 2>the end of the month stuff. It mass a long

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<v Speaker 2>term trend. And he's saying that the tipping point looks

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<v Speaker 2>like it might be there if the uro managers to

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<v Speaker 2>stay stronger against the dollar, and you're kind of you're

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<v Speaker 2>turning the trend around. And that's a point at which

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<v Speaker 2>aid allocation teams start to say, okay, well, hang on,

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<v Speaker 2>this is this is well, it's basically saying what you're saying,

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<v Speaker 2>we're taking a risk here by being overly exposed, nakedly

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<v Speaker 2>long to the dollar. And this is something they can

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<v Speaker 2>use almost to justify the decision to pull back on

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<v Speaker 2>that a bit, because also, if you haven't been holding

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<v Speaker 2>gold at all, you're probably starting to feel like a

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<v Speaker 2>bit of a numpty. And also the well bombs, and

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<v Speaker 2>also they can the arguments for for having a sixty

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<v Speaker 2>thirty five five portfolios start to become more mathematically convincing,

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<v Speaker 2>because not here, not at the top, well not at all.

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<v Speaker 2>But this is the problem absolutely exactly with golds down

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<v Speaker 2>so well, you plug that into the historic calculations and

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<v Speaker 2>it looks as if the benefit has outweighed the volatility

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<v Speaker 2>was before the dead and it suddenly looks as if, well,

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<v Speaker 2>so that would be sensible portfolio construction. And I just

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<v Speaker 2>wind that please.

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<v Speaker 1>Why now when dollar euros at one twenty, all of

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<v Speaker 1>a sudden you think, oh, it's about time I should

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<v Speaker 1>shift out the dollar. Why are the top I mean really,

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<v Speaker 1>it's like the goal. Why would you shoot your portfolios

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<v Speaker 1>ten percent of gold? Now? It's brain dead? You know, really,

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<v Speaker 1>people have got to do the risk reward on this

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<v Speaker 1>stuff and think for themselves common sense. You know, where

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<v Speaker 1>do I really think in a year in two years time,

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<v Speaker 1>these things will be and the chances of gold and

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<v Speaker 1>silver having a horrible blow off top and all going

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<v Speaker 1>very badly wrong, I think are getting exponentially. Nonetheless, with

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<v Speaker 1>regards to and I wrotised written an article about the

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<v Speaker 1>dollar euro in particular, the Europeans start to hurt above

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<v Speaker 1>one twenty. They already started talking about in the European

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<v Speaker 1>Central Bank. And if you look at a longer term chart,

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<v Speaker 1>you will see every time it pokes its head above

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<v Speaker 1>one twenty and certainly gets close to one twenty five,

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<v Speaker 1>they come and hit it on the head with a hammer,

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<v Speaker 1>and I expect that's exactly what's going to happen. And

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<v Speaker 1>we have the eased to be a meeting next Thursday,

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<v Speaker 1>February the fifth, where I expect there will be a

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<v Speaker 1>few more noises and we all back away from this all.

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<v Speaker 1>Maybe the next move in interest rates in Europe should

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<v Speaker 1>be a hike. No, it should not. It should be

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<v Speaker 1>either dead silence, which would have been preferable, but now

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<v Speaker 1>they can have to say we actual fact, we still

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<v Speaker 1>probably have a bias to ease, and maybe that a

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<v Speaker 1>week in the euro a bit the brutal reality. We

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<v Speaker 1>know the dollar wants to go down, the euro has

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<v Speaker 1>only one way to go, and they could very little

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<v Speaker 1>if they can do about it, apart from actually cut

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<v Speaker 1>into straights. Now you would argue you were French with

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<v Speaker 1>inflation world below one percent, they should be, but you

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<v Speaker 1>know a lot of the Germans, for some reason in

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<v Speaker 1>their economy is completely on the floor, don't seem to

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<v Speaker 1>want to do this. But I suspect by the end

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<v Speaker 1>of the year if the Fed and i'd lane the

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<v Speaker 1>Bank of the have cut again and probably one or two,

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<v Speaker 1>maybe even three more times you will see a further

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<v Speaker 1>rate cuts in Europe and I think that will be fine.

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<v Speaker 1>But until then there's a chance that the EU gets

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<v Speaker 1>a little bit too strong and it starts killing They're

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<v Speaker 1>already very weak export growth and indeed economy sadly.

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<v Speaker 2>Same point here because I haven't looked at here properly

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<v Speaker 2>and then don't maybe you haven't, adel but why is

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<v Speaker 2>for Ancian flution as law as it is, it kind

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<v Speaker 2>of stands as being.

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<v Speaker 1>Yeah, there's that again. Look, most these things are energy

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<v Speaker 1>driven and there is some basis stuff in it, but

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<v Speaker 1>you know, there is a very bad economy there at

0:11:36.920 --> 0:11:40.160
<v Speaker 1>the moment, and it's it's quite extraordinary how how long

0:11:40.200 --> 0:11:42.520
<v Speaker 1>it's been under one percent, and you know the risks

0:11:42.559 --> 0:11:45.560
<v Speaker 1>of it going lower. Italian inflation isn't very strong either. Again,

0:11:45.600 --> 0:11:47.600
<v Speaker 1>there are there are some basis effects from through as

0:11:47.640 --> 0:11:51.000
<v Speaker 1>things going going through, but I mean, you know, it

0:11:51.240 --> 0:11:53.560
<v Speaker 1>is starting to come more of a worry in France

0:11:53.720 --> 0:11:57.319
<v Speaker 1>that they're realizing this is this isn't just one off

0:11:57.320 --> 0:12:00.640
<v Speaker 1>effects from things like energy and whatever they are. There

0:12:00.720 --> 0:12:04.480
<v Speaker 1>is some actual residual problems, perhaps with lack of economic

0:12:04.559 --> 0:12:06.959
<v Speaker 1>growth and stimulus and momentum in the economy.

0:12:07.120 --> 0:12:08.520
<v Speaker 2>Yeah, and that is kind of a problem given we

0:12:08.600 --> 0:12:10.800
<v Speaker 2>are they are dated to GDPs, because at least we

0:12:10.960 --> 0:12:14.280
<v Speaker 2>can talk about tax receipts going up faster than anyone

0:12:14.360 --> 0:12:16.880
<v Speaker 2>expects purely in inflation driven basis.

0:12:16.960 --> 0:12:19.480
<v Speaker 1>But I mean, if you look at the overall gross

0:12:19.720 --> 0:12:21.640
<v Speaker 1>you know, dat GP of the UK, we're actually in

0:12:21.720 --> 0:12:23.520
<v Speaker 1>one of the best best spaces. I mean, I mean

0:12:23.520 --> 0:12:26.640
<v Speaker 1>a particularly corporate and household letting setting aside where the

0:12:26.679 --> 0:12:29.640
<v Speaker 1>government is. But we're relatively under one hundred present a GDP.

0:12:29.800 --> 0:12:32.640
<v Speaker 1>It does compare more favorably to most of Europe bar Germany,

0:12:32.679 --> 0:12:34.640
<v Speaker 1>but Germany is rapidly catching the rest of us up.

0:12:35.240 --> 0:12:39.199
<v Speaker 1>So yeah, I think France has has issues, particularly with

0:12:39.280 --> 0:12:43.120
<v Speaker 1>household debt and to extend corporate debt as well. But

0:12:43.480 --> 0:12:45.040
<v Speaker 1>the good thing, the only thing that I'm going for

0:12:45.080 --> 0:12:46.640
<v Speaker 1>at the moment, and clearly you can see that reflecting

0:12:46.679 --> 0:12:51.320
<v Speaker 1>the spread above German yields, is that the European Commission

0:12:51.360 --> 0:12:54.040
<v Speaker 1>are turning a blind eye. They are getting their budget

0:12:54.120 --> 0:12:57.200
<v Speaker 1>through somehow by hooker by crook, and you know, they're

0:12:57.280 --> 0:13:01.240
<v Speaker 1>not creating the flack within and Brussels that they otherwise

0:13:01.280 --> 0:13:03.720
<v Speaker 1>may have done it this situation. So at the end

0:13:03.720 --> 0:13:04.920
<v Speaker 1>of the day, everyone's got a turn a bit of

0:13:04.920 --> 0:13:06.679
<v Speaker 1>a blind eyes of France and let it a bit

0:13:06.800 --> 0:13:08.360
<v Speaker 1>like they have done in the past and continue to

0:13:08.400 --> 0:13:10.320
<v Speaker 1>do with Italy, and let it get try and get

0:13:10.360 --> 0:13:12.520
<v Speaker 1>itself out of its own mess because you know, domestic

0:13:12.600 --> 0:13:14.120
<v Speaker 1>politics are a mess.

0:13:14.480 --> 0:13:17.559
<v Speaker 2>Yeah, what's going on with the yen, because that's the

0:13:17.640 --> 0:13:20.840
<v Speaker 2>other thing that everyone sort of was broadly a little

0:13:20.960 --> 0:13:22.200
<v Speaker 2>bit jetterly about early.

0:13:22.440 --> 0:13:25.480
<v Speaker 1>Right, First things first, again, if you look at the

0:13:25.559 --> 0:13:29.920
<v Speaker 1>Japanese economy overall, excluding it is very large government debt,

0:13:30.080 --> 0:13:33.680
<v Speaker 1>which is bigger than anyone's really is. The domestic economy

0:13:33.800 --> 0:13:38.720
<v Speaker 1>is doing perfectly fine. Inflation actually is relatively okay. They

0:13:38.800 --> 0:13:42.120
<v Speaker 1>are they'll be wanting inflation to come in as the

0:13:42.200 --> 0:13:44.160
<v Speaker 1>rest of the world, and that's why they've been nudging

0:13:44.240 --> 0:13:47.400
<v Speaker 1>up their interest rates very calmly. Everyone gets scared about

0:13:47.400 --> 0:13:49.360
<v Speaker 1>the single the yen and carry trade, as in, you know,

0:13:49.800 --> 0:13:52.280
<v Speaker 1>people borrowing yen and buy us tech stocks, and it

0:13:52.360 --> 0:13:55.079
<v Speaker 1>funds the world's growth to a large degree. I think

0:13:55.160 --> 0:13:58.079
<v Speaker 1>people misunderstand how that trade works. That works very much

0:13:58.120 --> 0:14:01.240
<v Speaker 1>in short term tenors one month, three month, three month

0:14:01.280 --> 0:14:04.000
<v Speaker 1>type stuff. It doesn't exist in thirty and forty year

0:14:04.520 --> 0:14:08.440
<v Speaker 1>JGB yields, which is a very domestic market. However, recently

0:14:08.760 --> 0:14:10.520
<v Speaker 1>a lot of hedge funds have got involved in trying

0:14:10.520 --> 0:14:11.760
<v Speaker 1>to get busy, and I think quite a few of

0:14:11.800 --> 0:14:14.240
<v Speaker 1>them have been stopped out. So we're seeing a lack

0:14:14.320 --> 0:14:17.199
<v Speaker 1>of buyers domestically the pension funds, but like the UK,

0:14:17.400 --> 0:14:20.320
<v Speaker 1>do not want to own extra duration. In Japan, EI

0:14:20.520 --> 0:14:22.760
<v Speaker 1>yels are getting better and high. We are not seeing

0:14:23.040 --> 0:14:27.560
<v Speaker 1>the Japanese fund managers thinking, oh I can now get

0:14:27.600 --> 0:14:31.000
<v Speaker 1>the same yield or better even in yen, I will

0:14:31.200 --> 0:14:33.360
<v Speaker 1>move my money out of dollars. They're quite reversed. They

0:14:33.360 --> 0:14:36.920
<v Speaker 1>are keener to stay out of Japan and they believe

0:14:36.960 --> 0:14:39.320
<v Speaker 1>that the US will be cutting interest rates. Why not

0:14:39.400 --> 0:14:41.760
<v Speaker 1>own that bomb market? And that's why I think you

0:14:41.840 --> 0:14:43.720
<v Speaker 1>have to look at it. Where is the prospect of

0:14:43.760 --> 0:14:47.280
<v Speaker 1>lower rates and lower yields more likely an actual fact?

0:14:47.400 --> 0:14:49.960
<v Speaker 1>You know, especially with the weekning yen is up pill recently,

0:14:50.400 --> 0:14:53.200
<v Speaker 1>so they haven't been bringing money back on shore. They're

0:14:53.280 --> 0:14:57.360
<v Speaker 1>not that excited by higher yields. So that what weather

0:14:57.440 --> 0:15:01.400
<v Speaker 1>the yen, Well, the yen got towards one sixty and

0:15:01.560 --> 0:15:05.280
<v Speaker 1>clearly You've had the US Treasury encouraging the back of

0:15:05.360 --> 0:15:09.280
<v Speaker 1>Japan to call up very aus fxtealers and saying, where

0:15:09.280 --> 0:15:11.800
<v Speaker 1>would you possibly be offering me to buy some yen please?

0:15:12.280 --> 0:15:14.440
<v Speaker 1>The rate check which happened the last Friday, and it

0:15:14.560 --> 0:15:17.360
<v Speaker 1>look it had an immediate effect because it was done

0:15:17.440 --> 0:15:20.560
<v Speaker 1>again in US time by the US Treasury. You know,

0:15:20.680 --> 0:15:23.960
<v Speaker 1>notice been served. And I would say that the end

0:15:24.240 --> 0:15:28.080
<v Speaker 1>will continue to weaken, but very very carefully this time

0:15:28.240 --> 0:15:30.360
<v Speaker 1>because getting caught the wrong way on it is going

0:15:30.400 --> 0:15:32.960
<v Speaker 1>to be extremely papers when and if, and probably more

0:15:33.040 --> 0:15:35.560
<v Speaker 1>likely when the US Treasury comes in and they do

0:15:35.640 --> 0:15:38.920
<v Speaker 1>a concerted intervention, you know that will move it ten

0:15:39.080 --> 0:15:42.320
<v Speaker 1>big figures rather than fostest time. So in that sense,

0:15:42.520 --> 0:15:45.480
<v Speaker 1>it had got two week the end. And I think

0:15:45.720 --> 0:15:48.960
<v Speaker 1>it's only so much that the Japanese economy, Japanese government

0:15:48.960 --> 0:15:50.280
<v Speaker 1>want this to allow this to happen. And I think

0:15:50.320 --> 0:15:53.400
<v Speaker 1>we've been served a line of the sound has been drawn.

0:15:53.480 --> 0:15:56.680
<v Speaker 1>Is that going to hold? Probably not, but at some point, yeah,

0:15:57.200 --> 0:15:58.440
<v Speaker 1>crashing waves will come in.

0:15:58.800 --> 0:16:02.520
<v Speaker 2>It's just for clarity. Why does the US not want

0:16:02.600 --> 0:16:04.640
<v Speaker 2>the end to get weaker against the dollar?

0:16:04.640 --> 0:16:06.760
<v Speaker 1>Because he doesn't want the dollar to get strongercase it

0:16:06.840 --> 0:16:09.360
<v Speaker 1>wants the US export market to have a better chance

0:16:09.400 --> 0:16:11.000
<v Speaker 1>against the rest of the world. It's a little bit

0:16:11.360 --> 0:16:15.120
<v Speaker 1>dumb the way they look at this, but broadly, what

0:16:15.160 --> 0:16:17.480
<v Speaker 1>they're trying to say is that nice try. Guys, were

0:16:17.480 --> 0:16:19.440
<v Speaker 1>seeing the Chinese do exactly the same thing, was seeing

0:16:19.440 --> 0:16:22.720
<v Speaker 1>the Koreans do, and the Japanese the same game. Let's

0:16:22.840 --> 0:16:25.520
<v Speaker 1>keep our currencies very weak against principally the dollar, but

0:16:25.720 --> 0:16:28.800
<v Speaker 1>everything else and against each other more importantly, probably, actually,

0:16:29.480 --> 0:16:31.080
<v Speaker 1>you can't all play the same game. Get away with it.

0:16:31.200 --> 0:16:35.480
<v Speaker 1>We see you, and that's why, you know, the Japanese

0:16:35.600 --> 0:16:38.440
<v Speaker 1>are more observant of the lack of tolerance and how

0:16:38.480 --> 0:16:39.640
<v Speaker 1>it affects them with the US.

0:16:40.280 --> 0:16:42.320
<v Speaker 2>This means like kind of cold see Wars tape thing.

0:16:43.800 --> 0:16:47.400
<v Speaker 1>Yeah, they've literally the Japanese have got away with this

0:16:47.480 --> 0:16:49.400
<v Speaker 1>for a little bit too long. So the Chinese and

0:16:50.080 --> 0:16:53.560
<v Speaker 1>the US Treasury has them in their sites.

0:16:54.520 --> 0:16:59.200
<v Speaker 2>Excellent. Oyah. I think that's a pretty convincing roundp of

0:16:59.280 --> 0:17:01.080
<v Speaker 2>all the importance up from this week. I was just

0:17:01.160 --> 0:17:03.560
<v Speaker 2>pretty impressed it. Did you miss anything?

0:17:04.359 --> 0:17:04.560
<v Speaker 1>Lots?

0:17:04.640 --> 0:17:21.680
<v Speaker 2>I sure, but anything we feel qualified to discuss. Thanks

0:17:21.720 --> 0:17:24.080
<v Speaker 2>for listening to this week's Merton Talks Money Debrief. If

0:17:24.119 --> 0:17:26.159
<v Speaker 2>you like our show, rate review, and subscribe Wherever you

0:17:26.280 --> 0:17:29.240
<v Speaker 2>listen to podcasts, it keeps saying. Your questions are comments

0:17:29.280 --> 0:17:32.400
<v Speaker 2>to Mern Money at bloomberd dot net. You can also

0:17:32.520 --> 0:17:35.160
<v Speaker 2>follow me and Marcus so on Twitter or x I'm

0:17:35.359 --> 0:17:39.879
<v Speaker 2>joined Underscore Stepeck, and Marcus is at Marcus Ashworth. This

0:17:40.000 --> 0:17:42.320
<v Speaker 2>episode was supported by me Joint step Peck, and it

0:17:42.400 --> 0:17:44.720
<v Speaker 2>was produced by Moses and Am and Summer Sadie