00:00 Speaker a
I was joined by Anna McDonald, Aubrey Capital Management Investment Manager. Anna, thank you for joining our Market Sunrise. Well, let’s start with Fed. Today we will hear from some Fed speakers, but since Fed has reduced this month earlier, what you have submitted from the comments you have heard from the chairman Powell and, of course, the latest board member Stephen Myron?
00:30 Anna McDonald
Well, I think if they actually show that we are sharply facilitating that we now have two different thought schools in the federal reserves. We have a buddy who tries to be careful, dependent on data, thinking about the effects of constant inflation, which, as you say, can go forward in terms of expectations, but it still outperforms the goal. Thus, he has that stock -dependent attitude. And now, Moran has taken the unpaid leave of an announcement on the announcement, as in the White House, where he was chairman of the Economic Council, he comes and he talks about a much higher rate, 50 basic points reduction. And he, you know, says that the economy is not a shaking, but there are undeniable signs of weakness and Trump’s actions have actually changed The Outlook because how the market should think about inflation. You know, for example, he worked a lot, for example, immigrants’ workforce. So he says the structures’ markets have changed a bit. So, it is really wondering what they say, but remember that Moran is only one vote and is a much wider federal reserve. So I hope that other Fed UM members will think more in gradual and slower rate reduction to fail the expectations of UH inflation we want to have in the market.
01:42 Speaker a
Now our best story is that the potential closure of the government is approaching. UH, but it can also have a big impact on the Fed as we get a non -economic pay report on Friday. UH, what can happen if we don’t get a free pay report? But the number we look at, you know, is expected that only 22,000 people are quite small. It seems that if missed, there may be quite a big impact on the markets.
02:07 Anna McDonald
Yes, I think so. And indeed, if you think about the 22,000 August number, it’s actually about their corrections they come back. So it really showed that June. There was actually a negative number. So I think it’s always interesting to see not only what they go out this month, but also what they say about any changes in previous months. I think we are looking for 50,000 in September, but as we know, these figures will not even be announced if the Fed was turned off.
02:30 Speaker a
And when it comes to Fed Failown my colleague Julie Hyman said it might not have such a major impact on the markets. Do you come to terms with that?
02:40 Anna McDonald
Uh, well, I think we see the effect on gold. Hm, one of the reasons why I think I mean that we have previously discussed it, you know, this is a slightly safe refuge, UM, assets increased by 45%this year. And as the dollar continues to weaken, it actually becomes more attractive to those abroad who can now think because there was a lot, let’s face it that the second administration of Trump was very different and there are some foreign investors who might think about buying gold rather than the Treasury purchase. And it seems increasingly more attractive when you have things like a government closure that usually has no more than short -term effects, but I think we currently have a particularly fever atmosphere and, which can be investors rather than gold rather than a treasury.
03:22 Speaker a
Now it’s a pretty quiet week on the corporate income front, but we hear from the sports giant Nike. Uh, what are you looking there? So far, it was a little difficult year for them, right?
03:41 Anna McDonald
Yes, it was actually a difficult couple of years. UM, CEO is Chris sorry, Elliot Hill, he returned for 32 years after spending Nike commercial and marketing manager and returned to be CEO. And I think he is back thinking about all his marketing knowledge. We will notice a relatively large increase in marketing budgets, especially before the next year before the World Cup. NIKE is the suppliers of the top five teams that are in the FIFA World Cup rankings. And I think they view it as a great opportunity to try to recover the market share that may be lost to some new brands such as Hoka and On, which, you know, these are small brands, two billion dollars, not like Nike, it’s just $ 50 billion worth Juggernaut. But I think they need to strengthen themselves as serious, they have already tried to strengthen themselves as serious players, you know, technical coaches, really good coaches and football shoes and so on. But I think they will want to try to spread that “halo effect”, wider, and bring more people to buy Nike.
04:54 Speaker a
Anna McDonald of Aubrey Capital Management. Thank you very much for your mind.