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Jobs Report Shows US Is a Top Performer, El-Erian Says

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Moomoo News 09:32 · 5175 Views

Mohamed El-Erian, Queens’ College Cambridge president and Bloomberg Opinion columnist, says the December US jobs report confirms the economy is solid and is outperforming other developed economies. He's on "Bloomberg Surveillance." His opinions are his own.

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Transcript

  • 00:00 Mohammed, you've had a few minutes to go through this.
  • 00:01 What do you think about this one?
  • 00:03 I think this one is good for the economy.
  • 00:05 I know how the markets are reacting, but fundamentally this is good for the economy.
  • 00:08 It confirms two things.
  • 00:10 One is the economy remains solid, and two is the US continues
  • 00:14 to meaningfully outperform
  • 00:17 other advanced economies.
  • 00:19 And that theme of dispersion is going to become really important as we go forward.
  • 00:23 How does this complicate the lives of people in the UK and by people, I mean authorities, authorities in Europe, in Japan,
  • 00:30 who are just seeing
  • 00:31 repeatedly really strong numbers come out of the United States?
  • 00:35 Yeah, I think
  • 00:36 they have to hope for something better,
  • 00:39 but recognize that they have domestic issues that get amplified in a meaningful way
  • 00:45 if yields continue to go up due due to the US.
  • 00:48 What they cannot do is simply blame the US and stop there.
  • 00:52 They have actually got to get their own act together
  • 00:54 and this is more about them than it is about the USI know the US is leading
  • 00:58 the
  • 00:59 higher
  • 01:00 years around the world.
  • 01:01 But when you expose people's weaknesses around the world,
  • 01:05 these
  • 01:06 the idea of the dragging report, and I'm just looking right now at the euro and it's dropping like a stone.
  • 01:10 Talk about parity or one O 224.
  • 01:12 And this goes to this question of
  • 01:14 do they get some sort of reform or energizing push into their tech sector, etcetera.
  • 01:19 The fact again, I keep going back to this and Mohammed, you're exactly right with the idea that this is unabashedly positive when it's being driven by the private sector.
  • 01:27 This is not government spending.
  • 01:29 So those discussions
  • 01:30 really
  • 01:31 have to change, which should be positive maybe for the US, but the rest of the world
  • 01:36 thing
  • 01:37 is to lose the only locomotive of global growth.
  • 01:40 If we lose this only locomotive global growth, actually things get worse in the rest of the world.
  • 01:44 So
  • 01:45 the US has to continue to be strong, but the rest of the world has to get its policy act together.