Thursday 16th December 2021
The Fed, not surprisingly, are tapering faster as the race is on to lift rates next year. NAB’s David de Garis says the QE ending by March clears the decks to raise rate, with a revised inflation forecast speeding up the expectations of rate rises. Markets were expected a hawkish tilt, so they haven’t been surprised. The Bank of England decision is less easy to read later on, with Britain’s high inflation number overnight offset by the highest number of daily COVID infections since the pandemic began. In a busy day we also get PMIs across the globe and Aussie employment numbers.
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Does the US jobs shortfall vindicate the Fed’s cautious approach?
There are mixed views on the cause of the poor jobs recovery in the US. NAB’s Tapas Strickland says some see the stimulus as disincentive to look for work, whereas the markets have taken it as a sign that the Fed’s cautious approach is warranted.
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Volatility ahead as US China trade dispute intensifies
Tariffs about to kick in and Trump says more on the way. How will the markets react? I talk to NAB’s David de Garis about the worsening trade stand-off.
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A big bond sell-off.
A big sell off in bonds globally. It’s the pace of the moves in yields that’s grabbing attention, says NAB’s Gavin Friend, which is also putting downward pressure on stocks and helped push the Aussie dollar over 80 us cents for a while.
