WEBVTT - Single Best Idea with Tom Keene: Frances Donald and Jordan Rochester

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Single best idea, which is it was an odd week

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<v Speaker 2>into an odd weekend. Already on Friday as we tape,

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<v Speaker 2>I'm like looking into next week and tech earnings after

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<v Speaker 2>the absolutely extraordinary moment that is Intel. I'll be honest,

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<v Speaker 2>I did not see it coming. A lot of different

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<v Speaker 2>cross themes here, and of course on the War Special

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<v Speaker 2>thanks to Margaret Brennan and CBS and Face the Nation.

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<v Speaker 2>We do that on Bloomberg Radio at two pm in Washington,

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<v Speaker 2>New York and Boston on Sunday afternoon with Margaret Brennan.

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<v Speaker 2>But just a cacophony of themes that are out there.

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<v Speaker 2>Francis Donald was with us. She's in Montreal with the

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<v Speaker 2>Royal Bank of Canada. Has an always good look at

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<v Speaker 2>the United States economy. We started on onerous tariffs on

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<v Speaker 2>aluminium in Quebec.

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<v Speaker 1>In Canada, we've got aluminum steel, some on autoos and lumber,

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<v Speaker 1>and yet the economy has been largely resilient to this

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<v Speaker 1>trade shock. So far. It has benefited from again narrow

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<v Speaker 1>trade shock, fairly deep, lots of fiscal money in the pipeline,

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<v Speaker 1>lots of rate cuts that came through and Canada's stock

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<v Speaker 1>market hidden all time high, helped by gold and balance

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<v Speaker 1>sheets are doing better. So the economy actually produced more jobs.

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<v Speaker 1>Canada produced more jobs in twenty twenty five than the

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<v Speaker 1>United States, and perhaps most importantly, inflation is back down

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<v Speaker 1>around two percent. By the way, Canada one tenth the

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<v Speaker 1>size of the US, so some resilience, there are some pivoting,

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<v Speaker 1>diversification of trade, and you know you've mentioned some of

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<v Speaker 1>the sentiment up in Canada. Also a real big pullback

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<v Speaker 1>in Canadians visiting the United States twenty five percent, and

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<v Speaker 1>if you were, Canadians headed down to the US, so

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<v Speaker 1>lots still in play. We've got these big negotiations, but

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<v Speaker 1>focus on the longer trends. There's some good things going

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<v Speaker 1>on as well.

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<v Speaker 2>Francis Donald of OURBC on we went to Jordan Rochester

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<v Speaker 2>of Miszoo. A broad theme here of what foreign exchange

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<v Speaker 2>says about the market, but at the end of the day,

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<v Speaker 2>and particularly with Miszoo out of Tokyo, a look at

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<v Speaker 2>the stressor that's out there on my Bloomberg launch pad,

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<v Speaker 2>looking at equities, bonds, currencies and commodities, and that's a

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<v Speaker 2>Japanese yen for global Wall Street. There's a real tension

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<v Speaker 2>here of an ever weaker yen that's holding on it

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<v Speaker 2>wants to go weaker one sixty one sixty one, or

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<v Speaker 2>doesn't want to go stronger and plunge down to a

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<v Speaker 2>strong yen one p. Fifty two here Jordan Rochester.

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<v Speaker 3>While the Finance Minister Katyama has been threatening the idea

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<v Speaker 3>or teasing the idea of ethics intervention going all the way

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<v Speaker 3>back to October November December last year and we still

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<v Speaker 3>are yet to have it. But it makes it really

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<v Speaker 3>difficult to sell the en if you're fighting the government,

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<v Speaker 3>if you do not want to be on the other.

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<v Speaker 2>Side of that trade.

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<v Speaker 3>The day that dolly n tanks three percent, and that's

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<v Speaker 3>why it's been so boring to watch Dollian on the

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<v Speaker 3>tape and just drifting between one fifty eight and one sixty.

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<v Speaker 3>I think they won't need to. I think when we

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<v Speaker 3>get to one sixty the market starts to slow down.

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<v Speaker 3>If for some reason, Tom we got to one sixty one,

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<v Speaker 3>one sixty two, let's say the war restarts and that

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<v Speaker 3>kind of got us to those levels, then I could

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<v Speaker 3>see them doing it. But I don't see the motivation

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<v Speaker 3>for them to actually spend the money right now, I

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<v Speaker 3>just need to talk it down. It's working.

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<v Speaker 2>Jordan Rochester of Missoul and Podcasts. We're on Apple, we're

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<v Speaker 2>on Spotify, on YouTube podcasts. It's single best idea.