In anticipation for the FOMC minutes on Wednesday, and focus remaining on September’s NFP numbers, Marcus Ashworth – Head of fixed income at Espirito Santo Investment Bank – joins Tip TV CEO, Nick Batsford, to discuss what implications this will have for the Federal Reserve’s proposed rate hike, as well as China’s ongoing plans to weaken the Yuan, and is Greece well and truly out of the news?
Is the Federal Reserve at risk of flaking a second time?
Having made the choice to delay a rate hike last year, Marcus Ashworth thinks that the Fed will aim to avoid a repeat of this, but at the same time they want to soften the market to prevent their hand being forced on the matter. Until the payroll numbers are realised next month, it still remains a 50/50 call.
No major errors in Yuan devaluation
With Chinese authorities maintaining their stance that no further cuts to the Yuan will occur, China looks to be entering into a calming period. Despite a 7% fall in exports, and knock-on implications for other Asian markets, Ashworth believes that China made no major errors with their plan, and this devaluation will be good news in the long run.
Greece ordeal enters its denouement
Ahead of the German and Dutch vote on Greece’s new deal, the issue looks all but settled as the debt term maturity could be as much as 60 years, with the first 10 being interest free.
