Daily Briefing – Sept 1, 2020 – Fed’s Inflation Memo Sparked A New Leg Of The Rally: Tony Greer

Real Vision: Finance & Investing

Real Vision

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🗓️ 1 September 2020

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

Senior editor, Ash Bennington, hosts Tony Greer, editor of The Morning Navigator, to discuss how the Fed’s “inflation running hot” memo has been translated by the markets. With a weakening dollar, rally in TIPS, and a steeper yield curve, Tony argues that the asset price inflation happening is the way the Fed had intended it to be and that understanding how the Fed fits into the equation will shape the investor’s understanding of the sustainability of this rally. He and Ash examine the price action and continuous rotation across different sectors as well as how commodities continuing to rip is an expression of an ever-weakening dollar. Tony then provides his forward guidance for the remainder of the week. In the intro, Nick Correa goes over the newest U.S. manufacturing numbers as well as what’s happening with copper and other industrial metals. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	It's Tuesday, September 1st, 2020, just after market close in New York. This is the Real Vision Daily Briefing. I'm Ash Bennington in New York. It's
0:15.2	T. G. Tuesday. We're joined shortly by Tony Greer, editor of the Morning Navigator.
0:20.0	But first, with the day's stories, Nick Correa.
0:23.0	Thanks, Ash.
0:24.0	Today, the PMI reading for August came out to be 56,
0:27.0	up from 54.2 in July and above the medium projection of 54.8,
0:31.0	indicating the fastest rise in U.S. manufacturing since late 2018.
0:36.0	This upward momentum, in part, is due to the major jump in new orders to 67.6,
0:42.0	reaching its highest point since 2004. And this is due to inventories that are
0:46.5	rapidly depleting. These two factors continue to support the U.S. manufacturing
0:50.6	bounce back from its historic lows earlier this year.
0:53.4	However, U.S. manufacturing employment demonstrated ongoing
0:57.3	contractions as firms continue to exercise caution in the face of an uncertain
1:01.2	future with COVID-19.
1:02.8	As employment lags, this could pose risks to this recovery in U.S. manufacturing.
1:07.0	China is also continuing to lead the global manufacturing recovery as they too had reported
1:11.6	strong manufacturing data yesterday.
1:14.0	The Cheishin market China Manufacturing PMI came in at 53.1 for August, as compared to 52.8 for July
1:21.6	and to forecast of 52.6. In light of this incredible pickup in
1:25.6	manufacturing in China, three-month copper forward prices are increasing to their
1:29.8	highest levels since June 2018. Other industrial metals such as nickel, lead, and
1:35.6	zinc are experiencing momentum upward as well. For copper specifically, growth in China
	...

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