Cool Video: Bloomberg's First Up show from Hong Kong with Angie Lau

During this extended business trip, I had the privilege of being interviewed by Angie Lau of Bloomberg e have a TV. We have a wide ranging discussion in a little more than 4.5 minutes. Most of the key interpretative points I make in the interview will be familiar to regular readers of this blog. 

1. Policy is driven by the centrists, Yellen, Fischer and Dudley. This week's FOMC statement will announce the completion of tapering, but contain key phrases that are still consistent with a rate hike in the middle of next year.

2. The dollar's appreciation this year on a measure that is most important when considering the economic impact on the US (real broad trade weighted) is up around 2% this year. It is too small prompt policy makers to change their economic assessments.

3. The yen was the weakest currency last week. The dollar is finding a new range. JPY110 seems to cap the upside, while the downside may be JPY105.50-JPY106.

4. The results of the Asset Quality Review and stress tests on European banks were largely as leaked. While nearly one in five banks required more capital based on conditions that prevailed at the end of next year, half have raised sufficient capital to plug the shortfall already. Almost a third (9) of the 25 banks that failed the test are based in Italy.

5. The divergence between the US on one hand, and Europe and Japan on the other, is a chief characteristic of the investment climate, and is one of the key factors helping underpin the dollar.