Perspectives: Episode 80 – The most “America First” President

In this episode, Escala Partners CIO, Tracey McNaughton, gives a wrap-up of the US earnings season; why Biden may just be the most “America First” President in over 30 years; and why the Reserve Bank of Australia is likely now done with rate hikes.

(0:49) - So Tracey, tell us, what mattered this past fortnight for financial markets?

(2:13) - We might leave the discussion on the accuracy of central bank forecasts for another day. Just on corporate earnings – what are the key themes that have emerged?

(6:31) - Manufacturing has been in recession in many countries and all for the same reason – coming out of covid consumers turned to spending on services rather than goods. Is there any evidence of a bottom being reached for manufacturing?

(8:41) - Let's turn to the news about the downgrade of US government debt. The last time this happened was in August 2011. I guess the question is, why now?

(11:57) - What are the implications of a higher level of government debt?

(14:01) - We had the Reserve Bank meeting last week where the decision was made to leave interest rates unchanged. We also got some revised economic forecasts.

(15:46) - Is the tightening in household budgets showing up in the data?