Daily Briefing - June 10, 2020

Real Vision: Finance & Investing

Real Vision

Business News, News, Investing, Business

4.1 • 1.1K Ratings

🗓️ 10 June 2020

⏱️ 36 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Senior editor Ash Bennington joins Jay Pelosky, CIO and co-founder of TPW Investment Management, to unpack his contrarian and bullish thesis on the economy and markets. Pelosky argues that the big plays for 2020 is not in tech, but in commodities, as well as in value stocks and cyclicals. He explains that the overwhelmingly strong stimulus, both in the forms of monetary and fiscal policies, have undergirded demand in a way that will allow it to spring back later in the year. Pelosky also discusses why this is the decade of Europe and ESG, the growing appreciation for EM currencies, and the potential headwinds that might dampen the current broad appetite for equities. In the intro, Jack Farley reviews the Fed’s latest press release and delves into some of their rate forecasts and economic projections. 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 Wednesday, June 10, 2020, just after market close here in New York.
0:16.7	This is the Real Vision Daily Briefing.
0:19.4	I'm Ash Bennington joined shortly by Jay Polosky, co-founder and
0:23.8	CIO of T.P. W.
0:26.0	But first, here's Jack Farley with the latest on today's Fed news.
0:30.2	Thanks, Ash.
0:31.1	The Fed this afternoon reinforced their commitment to support the U.S. economy and U.S. asset markets,
0:36.2	vowing in the FOMC statement released at 2 p.m. today that it plans to keep rates between
0:41.5	zero and a quarter percent for at least 2020.
0:44.0	And a look at the dot plot shows that this decision is unanimous for 2021 and
0:48.5	predominant for 2022 as well.
0:50.3	In fact, Fed Chairman Jay Powell underscored this view in his speech saying,
0:54.3	we are not thinking about raising rates. We are not even thinking about thinking about
0:58.6	raising rates. The Fed pledged an additional $80 billion per month in treasuries and $40 billion per month for mortgage-backed
1:05.6	securities.
1:06.6	And it also guaranteed that it would continue its overnight repo operations to support the dollar
1:11.2	funding markets. Now this is a far cry from the $800 billion per month the Fed was providing at the height of this crisis,
1:19.0	but it's still plenty above the rate of replacement, so you can expect the Fed balance sheet to pass that
1:24.4	$7.2 trillion mark soon. Curiously absent in the FOMC's report was any
1:29.7	mention of yield-curf control but in his speech, J Powell did call it an open question.
1:35.4	The Fed also released some of its economic projections.
1:38.3	For 2020, the Fed is predicting a 6.5% contraction in real GDP and a 5% increase the following year.
	...

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.