Much Ado About Impeachment

09/27/19 • 34 min

House Speaker Nancy Pelosi’s decision to open a formal impeachment inquiry over President Donald Trump’s attempt to get Ukraine to dig up dirt on former Vice President Joseph Biden exploded in the news this week, sending a shudder through America’s political foundation. For investors though, it triggered a simple question: How should I trade this?

Natixis Investment Managers Chief Market Strategist Dave Lafferty and Bloomberg reporter Luke Kawa join this week’s “What Goes Up’’ to break it all down.

“In the near term, it doesn’t strike me as something tradeable,” said Lafferty. “We don’t know what we don’t know at this point; we don’t know what the revelations will be.” As 2020 approaches, however, “it has a lot of real market implications going into the election.”

Lafferty also discusses using game theory to analyze how the impeachment proceedings may affect Trump’s trade war, and how central bank stimulus is having diminishing effects. “Super accommodative policy 10 years on now serves to undermine investor and consumer confidence, more than it does to instill it,” he said.

See omnystudio.com/listener for privacy information.

Natixis Investment Managers Chief Market Strategist Dave Lafferty and Bloomberg reporter Luke Kawa join this week’s “What Goes Up’’ to break it all down.

See omnystudio.com/listener for privacy information.

Previous Episode

A Week of Curve Balls

A stock market trying to notch new record highs this week was thrown a great deal of curve balls. Attacks on Saudi oil facilities sent crude prices surging. The Federal Reserve lowered interest rates for a second straight time through what was seen as a “hawkish cut.’’ And short-term financing costs went – as some called it – crazy. Joining this week’s "What Goes Up” podcast to make sense of it all is Liz Ann Sonders, the chief investment strategist at Charles Schwab, and Alex Harris, who covers short-term funding markets for Bloomberg News.

Mentioned in this podcast:

The Repo Market’s a Mess. (What’s the Repo Market?)

‘This Is Crazy!’: Wall Street Scurries to Protect Itself in Repo Surge

Wall Street Races to Figure Out If the Quant Stock Shock Is Over

Powell the ‘Artful Dodger’ Declines to Signal What Comes Next

Oil Having Best Week in Eight Months as Iran Sanctions Toughened

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Next Episode

Introducing Stephanomics Season 2

Stephanie Flanders, head of Bloomberg Economics, returns to bring you another season of on-the-ground insight into the forces driving global growth and jobs today. From the cosmetics maker in California grappling with Donald Trump's tariff war, to the coffee vendor in Argentina burdened by the nation's never-ending crises, Bloomberg's 130-plus economic reporters and economists around the world head into the field to tell these stories. Stephanomics will also look hard at the solutions, in the lead-up to Bloomberg’s second New Economy Forum in Beijing, where a select group of business leaders, politicians and thinkers will gather to chart a better course on trade, global governance, climate and more. Stephanomics will help lead the way for those debates not just with Bloomberg journalists but also discussion and analysis from world-renowned experts into the forces that are moving markets and reshaping the world. The new season of Stephanomics launches Oct. 3.

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What Goes Up - Much Ado About Impeachment

Transcript

Speaker 100:00:12.560

Hello, and welcome to What Goes Up, a Bloomberg Weekly Markets podcast. I'm Sarah pont Zach, a reporter on the Cross Asset team, and I'm Mike Reagan, a senior editor on the Markets team. This week on the show, old risks are alive and well your common culprits like trade and slowing global growth. But there's one new one to now throw into the mix, the prospects for presidential impeachment. What if anything at all does this mean for markets? And i