Share
NAB Morning Call
Market responds to OPEC+ downgrade. US CPI and THAT debate to come.
Season 8, Ep. 204
•
Wednesday 11th September 2024
NAB Markets Research Disclaimer
Financial Services Guide | Information on our services - NAB
There’s been sizable falls in oil prices overnight, driven by a downward revision to OPEC+ forecasts for this year and next. NAB’s Skye Masters talks about the market response to the oil price and the slowdown more generally. She suggests it’ll make next week’s forecasts and dot plot from the Fed particularly interesting. We shouldn’t expect too much of a reaction to the US CPI numbers today and, unless there’s an overwhelming winner in the TV debate today, it’s probably too early to resume the Trump trade.
More episodes
View all episodes
244. Tariffs. The most beautiful word.
18:51||Season 8, Ep. 244Wednesday 16th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThere were sizeable moves in various asset classes over the last 24 hours, and that was before a revealing Trump interview with Bloomberg’s Editor in Chief. Phil talks to NAB’s Rodrigo Catril about a day that has seen oil lower on expectations that Israel won’t strike Iranian oil installations, shares fall as a report suggests they are overweight and concerns about AI chip demand and possible restrictions on exports from the US. Plus, another shift in sentiment around China’s support plans. NZ and UK CPI are out today. In New Zealand it is expected to support the case for faster cuts, whereas the UK number is likely to give the Bank of England a bit more time to move.243. Stuck in a rut over the ditch
14:51||Season 8, Ep. 243Tuesday 15th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABNew Zealand’s Performance of Services Index stuck yesterday at 45.7 for September, marking the seventh month in contraction. NAB’s Rodrigo Catril says the only good news you can take for that is that it the downturn isn’t speeding up. In China the latest trade numbers were also a disappointment, highlighting the need for a stimulus from the government. In the US equities pushed higher. Phil asks, it can’t all be earnings season, can it? The question is, are some shares buoyed by the return of the Trump Trade, as the former President is experiencing a resurgence with the bookies. Today bank lending for Europe and employment and wages for the UK are the two key bits of data, along with Canadian inflation.242. Hold on, it’s coming
14:27||Season 8, Ep. 242Monday 14th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABAs predicted by Tapas on The Morning Call last week there was no definitive plan fiscal plan presented by China’s Ministry of Finance on Saturday. As suggested, it will need to be ratified by the standing committee of the National People’s Congress, which is likely to happen before the end of the month. But NAB’s Ray Attrill explains some of the plans that were outlined, including giving local authorities access to earmarked cash that could help stimulate the economy almost immediately. There’s also a look at last week’s US PPI number and what that, in conjunction with the hotter than anticipated CPI number, could mean for the path of rate cuts by the Fed before Christmas. Might there just be one cut to come?241. Weekend Edition: A Suttle World Tour
35:28||Season 8, Ep. 241Friday 11th October 2024Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.Phil Suttle is an economist who has worked at JP Morgan, the Bank of England, the Fed, the World Bank, the IIF, Barclays Capital and Tudor Investments. These days he provides his own observations and analysis to paying subscribers, saying he enjoys the independence that provides. He really can say what he thinks. So, what does he think about the world right now? With the US less than a month away from a Presidential election, how will the US economy respond to the two distinctive approaches of Donald Trump and Kamala Harris?He also talks to Phil about the differences in approaches that have been taken by central banks, including the RBNZ and RBA, the chance of a China recovery and what that means for the west, and the dire state of the German economy.It’s a whirl wind tour with Phil (and Phil), with so much more to see that we’ll have to do it again sometime soon.240. Coming down slowly
15:28||Season 8, Ep. 240Friday 11th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABAfter stronger than expected jobs numbers last week, the CPI data overnight shows inflation isn’t coming down quite as quickly as expected. The combination might suggest there’s less of a rush for the Fed to cut rates but NAB’s Tapas Strickland says there hasn’t been significant moves on the pricing of Fed cuts since the inflation numbers. It will make the words from the upcoming “bevvy” of Fed speakers perhaps more interesting than usual. The other significant event to look out for is the announcement from China’s Finance Minister at the weekend. Tapas believes there’s reason to suggest it will be another disappointment. And with the Israeli security cabinet meeting just as we record today’s episode, could they be ready to retaliate? No doubt part fo the reason for the rise in oil and gold prices this morning.239. Heavy Weather
15:30||Season 8, Ep. 239Thursday 10th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABStorm Milton hit the Florida coast at 1am ET. Despite that, and the continued risk of an Israeli attack on Iranian oil facilities, oil prices fell overnight. Obviously China demand is part of the picture here, but another ‘announcement’ is expected from Beijing this weekend. In the latest FOMC minutes it is clear there was agreement that the risk of inflation had diminished, whilst the downside risk to employment had increased. The latest payrolls data suggest that downside risk is less clear and JBWere’s Sally Auld wonders whether all those voting for a large cut were entirely convinced of it. Maybe some were cajoled by Jerome Powell. It was a clearer picture for the RBNZ yesterday and Sally wonders whether the next cut will be even bigger.238. Brassed off after a Golden Week
16:55||Season 8, Ep. 238Wednesday 9th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABMarkets with any China connection have responded negatively to news from the National Development Reform Commission. An announcement was expected, and most will have assumed it would include a large swag of spending from the three trillion Yuan that was believed to have been earmarked for fiscal stimulus. But, as NAB’s Ken Crompton discusses with Phil, all they did was brought forward 200 billion Yuan from next year’s budget. They also discuss yesterday’s NAB business survey and look ahead to the RBNZ today. A big cut is expected, but will there be another one next time round?237. Global markets adjust to Fed expectations
15:50||Season 8, Ep. 237Tuesday 8th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABToday markets are responding to a mix of adjustments to expectations for Fred rate cuts, alongside continued uncertainty about developments in the Middle East. Late in the day in the US a judge has added to downward moves in equities by ruling that Alphabet cannot block other marketplace providers from competing with the Play Store. NAB’s Rodrigo Catril takes Phil through the moves overnight and looks ahead to a Quadrifactor (yes that’s right) of local news. Plus, possibly news of government support from China today.236. Jobs a plenty
16:54||Season 8, Ep. 236Monday 7th October 2024NAB Markets Research Disclaimer Financial Services Guide | Information on our services - NABThe non-farm payrolls data on Friday in the US was a big upside surprise. It means there’s less need for any large cuts by the Fed who will be hoping they will have controlled inflation whilst steering the economy into a soft landing. That’s assuming the rise in jobs doesn’t mean a rise in salary expectations. NAB’s Taylor Nugent talks Phil through what it means and why such a strong market response on Friday. Does it have implications for other central banks? Whilst the data might have reduced expectations for faster cuts by the Fed, the BoE’s Huw Pill talked down the market response to Andrew Bailey’s comments in the Guardian. They are in no rush. Unlike the RBNZ, who is widely expected to go for a large cut this week.