Single Best Idea with Tom Keene: Geoffrey Yu & Huw van Steenis
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Bloomberg Audio Studios. Podcasts. Radio. News. A single best idea, a four-hour broadcast today. What a set of conversations, given the news flow. As Laurie Calvacina said, she was celebrating her Mother's Day, and the world paused and turned upside down about 4 p.m. Sunday, Wall Street time. And on we went. And on we went today. We blew up the show two or three times.

It was just great to start strong with Jeffrey Yu at BNY, really quite exceptional at pulling together equities, bonds, currencies, commodities, spent most of the time in talking to him about tariffs. Here, Jeffrey Yu on a changed American exceptionalism. U.S. exceptionalism means you buy stocks, you buy U.S. stocks, you buy U.S. bonds, and you buy the dollar. We think that the

only thing which may de-correlate slightly or not just be as full on is on the dollar side. So to compensate for maybe a little bit more risk premium due to the recent uncertainty is a softer dollar. But again, this shouldn't be seen as a bad thing. A, it's something that the Trump administration perhaps on and off has been talking about. But B, what if U.S. companies become exporters as well? Then you can benefit from that

FX earnings translation that Europe, Switzerland, Japan, and even China, Asia, they always look for. So that correlation shift is perhaps taking place, but don't read it as a negative for U.S. exceptionalism, at least not yet. Let's see if U.S. companies can adapt. I would suggest a different type of uncertainty on this day versus seven days ago or seven months ago. Jeffrey Yu with BNY. What a privilege to have Hugh Von Steenis with us. He is

was with us and then I think he went to Milken Institute out in LA and was back again in New York City today. So he spoke to the vice chairman of Oliver Wyman with all of his perspective on continental banking and finance and of course Hugh von Steenis on the exceptional turmoil of his United Kingdom. The great advantage of the UK for many years was it was mid-Atlantic.

It didn't have quite the US growth rate, but it certainly was growing faster than Europe. Unfortunately, since the financial crisis, but particularly since Brexit, we've lost that UK exceptionalism. In fact, in a way, we were exceptional compared to Europe, and now we're... Actually, the end of UK exceptionalism in 2016 was really the right. And actually, my old boss, Prime Minister Carney...

was correct. The Brexit was economically at least, put to one side politically, a poor decision. So I think that we're trying to get our act together again. I think one thing that the president here has really shone a light on is like the terms of trade internationally. The UK's terms of trade with its nearest counterpart

is now poorer. So is there a way to put the politics on side, improve trade relationships? And maybe if you want to have a Hail Mary, it would be if Canada wants to actually have lower tariffs with Europe, maybe there's an opportunity for Ukraine, Canada, UK to end into a much lower tariff zone. Hugh von Steenis of Oliver Wyman, of course, a service to the Bank of England with, at the time, Governor Mark Carney now doing other things.

Canada. Thank you so much for your attention today. Particularly thank you to Eric and our team for just blowing up the show literally three, four times here over the last 24 hours. On your commute across the nation, thank you so much for your attention. On Bloomberg, I should say on YouTube, subscribe to the Bloomberg podcast. And out at YouTube podcasts, it's the single best idea.

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