Daily Briefing – Aug 25, 2020 – Markets Are Starting To Telegraph The Onset Of Inflation: Tony Greer

Real Vision: Finance & Investing

Real Vision

Business News, News, Investing, Business

4.1 • 1.1K Ratings

🗓️ 25 August 2020

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Senior editor, Ash Bennington, hosts Tony Greer, editor of The Morning Navigator, to continue their discussion of the wild inflation trade. They first look at ExxonMobil getting the boot from the Dow Jones and how it reflects a weak energy sector and the rotation of tech upward, describing how the boom across tech subsectors are correlated to Fed policies. Tony also notes how the baton has been passed over to commodities as well as they continue exploding and how a sell-off in bonds will sustain the commodities’ rally while denoting a rise in inflation. He closes off by providing an update on his thoughts on the DXY, why dollar weakness is a part of the commodities bull case, and what might be driving the rallies in the yen, euro, and Aussie dollar. In the intro, Nick Correa talks about tech’s ongoing dominance in the market by looking at Dow Jones’ makeover and how tech companies are lining up to file their IPOs. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	It's Tuesday, August 25th, just after market close in New York. This is the Real Vision Daily Briefing. I'm Ash Bennington in New York. It's
0:15.6	T. G. Tuesday. I'm joined shortly by Tony Greer, editor of the Morning Navigator. But first, with
0:21.6	the day's stories, Nick Correa.
0:24.0	Thanks, Ash.
0:25.0	The technology sector is continuing its takeover of the broader market
0:28.0	with the recent announcement of Exxon, Raytheon, and Pfizer
0:31.0	being removed from the Dow Jones Industrial Average Index.
0:35.0	ExxonMobil and Raytheon Technologies are two of the oldest members of the Dow Jones.
0:40.0	Exxon was added in 1928, and Raytheon was added by way of a merger this year with United Technologies,
0:46.4	which was a part of the index since the 30s when it was originally known as United
0:50.2	Aircraft.
0:51.2	Pfizer, one of the largest pharmaceutical companies in the world, is also
0:55.3	being removed from the Index. Taking their place as Sales Force Amgen and Honeywell,
0:59.6	Honeywell had previously been a part of the index from 1925 through 2008, returning after hiatus of more than a decade.
1:07.0	However, with the addition of Salesforce in Amgen, it demonstrates the seemingly unassailable force of the tech sector.
1:13.2	While Salesforce is the cloud-based sales automation software we all know and
1:17.1	love, Amgen is one of the world's largest biotech companies.
1:21.1	The move to add Amgen and remove Pfizer goes to show how the biotech
1:25.1	sector seems to be outshining traditional pharmaceutical companies. These two
1:29.2	companies may help buoy the index when the changes go live on August 31st, considering how the Dow Jones
1:34.5	is a share price-weighted index and that Apple's 4 for 1 stock split goes into effect the same day.
1:40.3	Because the market environment for tech stocks has been so favorable for the past few months,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Real Vision, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Real Vision and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.