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

<p>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.</p> <p>(0:49) - <!-- [if !supportLists]--><span lang="EN-GB" style="mso-ansi-language: EN-GB;" xml:lang="EN-GB">So Tracey, tell us, what mattered this past fortnight for financial markets?</span></p> <p>(2:13) - <span lang="EN-GB" style="mso-ansi-language: EN-GB;" xml:lang="EN-GB">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?</span></p> <p>(6:31) - <span lang="EN-GB" style="mso-ansi-language: EN-GB;" xml:lang="EN-GB">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?</span></p> <p>(8:41) - <!-- [if !supportLists]--><span lang="EN-GB" style= "mso-ansi-language: EN-GB;" xml:lang="EN-GB">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?</span></p> <p>(11:57) - <!-- [if !supportLists]--><span lang="EN-GB" style= "mso-ansi-language: EN-GB;" xml:lang="EN-GB">What are the implications of a higher level of government debt?</span></p> <p>(14:01) - <span lang="EN-GB" style="mso-ansi-language: EN-GB;" xml:lang="EN-GB">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.</span></p> <p><span lang="EN-GB" style="mso-ansi-language: EN-GB;" xml:lang= "EN-GB">(15:46) -</span> <span lang="EN-GB" style= "mso-ansi-language: EN-GB;" xml:lang="EN-GB">Is the tightening in household budgets showing up in the data?</span></p>