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And context changes everything. Go to Bloomberg.com to get context. Welcome to the Bloomberg surveillance podcast. I'm Tom Keene.

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Bloomberg. I'm pleased to say that in London, Themos Fyotakis joins us now the UBS co-head of FX and rates.

And Themos, I want to begin with something that's front and center for the world of politics but certainly not front and center for global markets.

And that's the potential of the government's shutdown in the United States of America.

When the clients call you Theymos and ask you, what does it mean what are the consequences what do you say?

Well long term no US legislative body has basically allowed this to go over the

cliff in a way that disrupt the payment flows for the US.

So the long term it's probably something that will mean reverted.

The short term it can cause some noise and particularly for money markets.

As the government runs up and down its cash balances,

it creates significant excess or less than that supply in money markets and that's what's the most important

short-term impact.

Well if you was in the money markets and in the very front end of the Treasury curve you can get these

kind of little kinks and they kind of account for when you might get a shut down and when things

will reopen again.

Al swear though, does this actually have any impact for the FX market etc?

Not really. We've done a detailed study.

This has a lot to do with a lot of fixed income instruments and how they trade against one another

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