Citigroup's Cochinos Sees Two U.S. Dollars in Market

The video discusses political risk in Europe, focusing on CDS spreads and currency impacts. It highlights differences in risk perception between domestic and international markets, referencing events like Brexit and Trump's victory. The discussion shifts to dollar strength, market dynamics, and correlations, particularly between the euro and emerging markets. The impact of US tax policies on emerging markets is explored, with a focus on the border adjustment tax. Finally, currency pairing strategies and European economic indicators, such as inflation and PMI, are analyzed.

What is one method mentioned for assessing political risk in Europe?

• Examining the spread of credit default swaps

• Monitoring social media sentiment

• Analyzing stock market trends

• Surveying public opinion polls

How do domestic and international investors differ in their perception of Marine Le Pen's risk?

• Domestic investors see it as a major risk, while international investors do not.

• Both domestic and international investors see it as a major risk.

• International investors see it as a major risk, while domestic investors do not.

• Neither domestic nor international investors see it as a major risk.

What caused the correlation break between the euro-dollar and emerging market indices in mid-2016?

• The introduction of new trade tariffs

• A change in U.S. monetary policy

• Diverging economic outlooks for major and emerging markets

• A sudden increase in global oil prices

What could potentially change the current strategy of playing the dollar versus euro dynamics?

• A significant drop in European inflation

• A decrease in global commodity prices

• Greater momentum behind U.S. tax reforms

• A rise in Japanese yen value

What recent economic data from Europe suggests interregional plays?

• An increase in European trade deficits

• A decrease in European unemployment rates

• The strongest inflation and PMI figures since 2011

• A decline in European stock markets