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Real Vision: Finance & Investing

Do Central Banks Have Control?

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 27 October 2022

⏱️ 36 minutes

🧾️ Download transcript

Summary

The European Central Bank announced a second 75-basis-point interest-rate increase in as many months on Thursday, meeting economists’ expectations with inflation riding at a record-high 9.9%. The euro weakened against the dollar, even as Treasury yields softened, as investor concern about future growth seems to be intensifying. Meanwhile, the U.S. economy expanded at an annualized pace of 2.6% during the third quarter. Global Markets Editor Weston Nakamura joins Maggie Lake live in Real Vision’s New York studio for a special edition of the Daily Briefing to talk about the new “widow-maker” trade and the dilemma central bankers face, illustrated by the Bank of Japan’s money-printing into the Ministry of Finance’s yen-buying. Weston discusses in greater depth the emerging conflicts between governments and their central banks here: https://rvtv.io/3DhzACD. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

Hi, everyone. Welcome to a special edition of the Daily Briefing live from New York City

0:12.9

with a very special guest, the one and only, Weston Nakamear, our global markets editor

0:18.2

who joins us all the way from Tokyo. Hi, Weston. Good morning from Tokyo. Oh, I'm sorry.

0:25.3

In real life, we're actually sitting together for a change. Wow. It's actually like daytime

0:29.8

and it's market close. How about that? Yes. And hopefully you got some sleep because

0:33.0

usually we're talking to you in the middle of the night when you've been up all night.

0:36.2

Yeah, I don't know. Night, day, PMAM. Well, it's going to be super fun to be able to do this

0:42.4

in person. But before we get started, remember two days left for our special crash offer.

0:47.7

So you want to jump on it. The QR code is going to be on the bottom of the screen. So go

0:52.0

ahead and check it out. Okay. So everyone is, we had GDP out in the US today. Everyone's

0:58.6

trying to game with the feds doing. But my question for you is, are we paying enough attention

1:03.6

to the other central banks around the world because we did have movements elsewhere?

1:08.3

We did. We as a new and I probably probably not actually know. So we had ECB. I know you

1:15.3

are. Should the rest of us be paying more attention? I am attempting to. I don't think I

1:19.7

am successfully, but yeah, ECB was today too. There's really kind of weird how under the

1:25.8

radar that went to leading off to the ECB itself. Sorry about bass points. And then the

1:31.8

year old is now last I checked is actually below parity, crack below parity. And Bank of Japan

1:37.0

is small. And the Bank of Japan being the significance of the Bank of Japan is, first

1:44.0

of all, you do have, I can't believe this is still a trade, but the Widowmaker on shorting

1:50.4

JGBs is still on and you have open interest on JGB futures at I think it's even like a

1:58.2

pre start of obonomics highs. I might be wrong about that, but it's like right around that

2:02.5

level. So it's, you know, it's a lot of positioning. But the focus is going to be on the currency

...

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