Podcast: How low can US yields go as China steps up stimulus?
Saxo Market Call
Summary: US equities post another new record yesterday with the second straight session of most of theme baskets declining suggesting that gains were driven by the "boring" stocks. FOMC Minutes suggested yesterday that the Fed is considering earlier tapering of bond purchases and China's State Council is considering lowering rates to stimulate the real economy supporting the growing view that China is experiencing a slowdown. The growth concerns are fueling lower interest rates, boosting technology stocks, causing equities to roll over from yesterday's highs. Oil prices are also weak on China's growth concerns and the Delta variant causing renewed disruptions to fuel demand. On today's podcast are Ole Hansen on commodities and Peter Garnry hosting and on equities.
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Outrageous Predictions 2023: The War Economy
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Gold rockets to USD 3,000 as central banks fail on inflation mandateAs markets and central banks realise that the idea that inflation is transitory is wrong, and that prices will remain higher for longer, gold is sent through the roof, hitting a price tag of USD 3,000
EU Army forces EU down path to full unionWith continued challenges in the region and a US military that isn't aggressively enacting its former role as global policeman, the European Union agrees to create its own armed forces, bringing the whole region closer.
A country agrees to ban all meat production by 2030In an effort to become one of the global leaders on the path to net-zero emissions, one country decides to not only put a heavy tax on meat, but to ban domestic production entirely.
UK holds UnBrexit referendumFollowing a recession and domestic pressure, the United Kingdom is thrown into political turmoil that will end with a vote to wind back Brexit.
Widespread price controls are introduced to cap official inflationHistory tells us that with the war economy comes rationing and price controls. And this time is no different, as policymakers introduce strict price controls that lead to a range of unintended consequences.
OPEC+ & Chindia walk out of the IMF, agree to trade with new reserve assetSanctions against Russia have caused widespread turmoil due to US Dollar moves in countries across the globe that don't consider the US an ally. To relieve themselves from this, they leave the IMF and create a new reserve asset.
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