In this podcast, Mike and Rory start by discussing an under the radar under performance from the Brazilian Real on Monday, following the less than expected foreign direct investment into Brazil. The pair talk about how there is still room for growth in their opinion with the emerging market space and the difficulties that can often surround investing into emerging markets.
Rory talks about how last Friday’s PCE number came in lower than expected finally below 4% and what this could mean going forward in terms of monetary policy, as well as how markets will recognise this move lower. He also talks about the implications of stubborn inflation at these levels.
The Blokes also cover the recent market moves that many big tech names and other corporates are up following some out of Calendar earnings and price being pushed by macro tailwinds in general. Carnival cruise lines (CCL) is one company mentioned in the podcast, looking at how their negative earnings were still a positive for investors and how this landed the stock up higher.
Rory talks about the week ahead in the podcast discussing the importance of the ISM Manufacturing and Services that is being released as well as listening out for the FOMC minutes also and not to forget the RBA interest rate decision. However, the highlight of the week and the one to watch will be the employment situation report (ESR) which is released on Friday, with the Non-Farm Payrolls expected to be 225k. The Blokes share their opinion on what they think NFP will be on Friday and to follow this podcast will be their opinion on how NFP can be traded.