WEBVTT - Single Best Idea with Tom Keene: Isabelle Mateos y Lago & Francisco Blanch

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

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<v Speaker 2>Best Idea, an extraordinarily eclectic day on Bloomberg Surveillance one

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<v Speaker 2>of the high points. Thank you so much in Dallas

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<v Speaker 2>for listening. We were talking family networth and investment, family office.

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<v Speaker 2>I should say an investment out of Dallas, and thank

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<v Speaker 2>you to the person sending her Toado barbecue for the

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<v Speaker 2>Texas Rangers, which is a food that you can't get

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<v Speaker 2>at Yankee Stadium or a city field or most certainly

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<v Speaker 2>not at Fenway Park. Really deluxe. I guess you go

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<v Speaker 2>to the Rangers to eat and then maybe watch a

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<v Speaker 2>baseball game. Because to the collective group of people. We

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<v Speaker 2>started strong with Isabelle Matteo Ilago, who did a lot

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<v Speaker 2>of work with Legarde at the ECB and then went

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<v Speaker 2>out of Black Rock and now holds court as the

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<v Speaker 2>chief voy. It's for b MP Pariba, a spectacular French bank.

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<v Speaker 2>You're thrilled she could join us in studio. Here is

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<v Speaker 2>Isabelle Monteosi Lago of BNP Pariba.

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<v Speaker 3>Europe has a Europe when by that I mean the

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<v Speaker 3>European Commission are true believers in the benefits of free

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<v Speaker 3>trade and so they embarked in this, uh, these trade

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<v Speaker 3>discussions or this trade war, so to speak, with the

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<v Speaker 3>with the US with a view to saying, oh, this

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<v Speaker 3>is going to be great. We're going to offer to

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<v Speaker 3>lower our tariffs and the US is going to lower

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<v Speaker 3>their tariffs and we're going to end up with more trade.

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<v Speaker 3>This is going to be awesome. And it seems they've

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<v Speaker 3>realized in the course of the last few weeks then actually,

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<v Speaker 3>this is not really what the US wants, uh, And

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<v Speaker 3>so now the discussion has got very much more concrete

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<v Speaker 3>to trying to do damage limitation. Maybe that's one way

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<v Speaker 3>to to to to put it and accept that tariffs

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<v Speaker 3>from the US are probably going to be higher, but

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<v Speaker 3>let's see what we can do to minimize the cost.

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<v Speaker 3>But I think what's what's interesting is Europe has decided

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<v Speaker 3>to double down on a global trade with other partners

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<v Speaker 3>than the US. We've seen the beginning of a mending

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<v Speaker 3>of the relationships with the UK with the first improvement

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<v Speaker 3>on the Brexit trade deal. There are very advanced talks

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<v Speaker 3>with India. There's consideration to even joining the CPTPP. So

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<v Speaker 3>Europe is doubling down on global trade and is going

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<v Speaker 3>to try to do damage limitation with the US as

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<v Speaker 3>best it can, but it's trying to portray itself to

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<v Speaker 3>the rest of the world as a place that is

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<v Speaker 3>open for trade, open for business. And I think back

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<v Speaker 3>to Tom's point that's also going to help boost productivity

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<v Speaker 3>going forward.

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<v Speaker 2>Isabelle Montereo Slago a BNP Parry A joy to have

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<v Speaker 2>Francisco Blanche with us looking at all of commodities in

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<v Speaker 2>the derivative dynamics at the Bank of America. We started

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<v Speaker 2>with gold, looked at a lot of China dynamics as well,

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<v Speaker 2>but here Francisco Blanche and oil.

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<v Speaker 4>I think you need to see a little more evidence.

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<v Speaker 4>But remember we are we're actually seen generally commodity prices

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<v Speaker 4>spalling cyclically driven by oil. The big question is when

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<v Speaker 4>shale is going to essentially stop growing, and when it does,

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<v Speaker 4>then we will be in a commodity bull market. Remember

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<v Speaker 4>China's also seen peak population growth, and now it's other

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<v Speaker 4>emerging markets, right, I mean, commodity intensity is growing in

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<v Speaker 4>places like India, other parts of Southeast Asia and then

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<v Speaker 4>of course Africa. So I mean, I do think there's

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<v Speaker 4>a China story behind this, but that's been the story

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<v Speaker 4>of the last twenty five years. It really is down

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<v Speaker 4>to the rest of the emerging markets going forward, and

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<v Speaker 4>frankly to our ability to keep pulling commodities out the ground.

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<v Speaker 2>Francisco Blanche, the Bank of America onto a key inflation

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<v Speaker 2>report tomorrow, CPI Wednesday, PPI on Thursday as well, and

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<v Speaker 2>your community across the nation, don't forget serious. XM Channel

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<v Speaker 2>single best idea