tom: callum henderson. o ian how badly does saudi arabia need the united states and the united kingdom? callum: we have written on this at length. of course, the u.s.-saudi relationship has gone through an important transition. long-term allies, long-term partners. oilvery fact that shale and have grown to such an extent in the united states have changed that relationship. the u.s. has also started to refocus on asia instead of the middle east, which is also changed the relationship. it is a question you asked john. youn excellent question asked john. there will be resistance within saudi arabia to the plan. it hurts a number of vested interests. not least the conservative religious establishment and other parties within saudi arabia. there is a lot of uncertainty to go through, even if it succeeds. francine: i'm getting breaking succeed -- breaking news. the brazilian bank that was forced to sell assets last year is exploring the sale of 50% of its sale in the african joint venture that it has. this is petr

we are with callum henderson.r expertise in for exchange is one single word, you see it in yen, well over to standard deviation, the euro almost got to three standard strong, what a brutal moves up for exchange? callum: you are seeing this because of political and market uncertainty that option implied volatility in g7 exchange rates is higher than emerging markets. tom: why? callum: politics is impacting monetary decisions, economic decisions, and because we are not used to pricing that, the options market is demanding. tom: the money question is -- how can we price risk? with low nominal and real rates, how can we begin to make our calculations? callum: we cannot, huge uncertainty. volatility. in g7 exchange rates, some which should be safe havens but have rallied or collapsed on a daily basis. francine: if you are saying politics is influence monetary policy, what is the endgame? a common thread to the politics around the world, and that is the antiestablishment vote. how does monetary policy prepare for that?