Real Vision: Finance & Investing

The U.S. dollar index hit 100 for the first time in two years on Friday, surging on the prospect of a more aggressive monetary tightening cycle on top of an increasingly fraught geopolitical landscape. Signs of inflation abound, even as the Federal Reserve asserts its hawkishness at every opportunity. The U.N. Food and Agriculture Organization’s food price index jumped nearly 13% in March to a new record high, with disruptions to global trade flows, specifically passage through the crucial Black Sea, fueling fears of food shortages. And prices for agricultural commodities continue to rise. U.S. equity indexes were mixed two hours before Friday’s close of regular trading, with tech stocks giving back much of what was gained on Thursday. The yield on the 10-year U.S. Treasury note touched a new three-year high. Jeremy Schwartz, Global Chief Investment Officer at WisdomTree Asset Management, joins Warren Pies on today’s Daily Briefing to discuss the U.S. dollar, supply chain disruptions, and inflation. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3xenRmT Learn more about your ad choices. Visit podcastchoices.com/adchoices

WTI gave back early gains today, as member-states of the International Energy Agency agreed to release 60 million barrels of oil from storage in a follow-up move to President Joe Biden’s plan to tap the Strategic Petroleum Reserve for 180 million barrels. There are also questions about whether eurozone authorities will be able to keep Russian oil off the market. Chinese officials provided more rhetorical support for stepping up monetary stimulus for the economy to boost consumption at an “appropriate time,” acknowledging that domestic and global risks are now more significant than previously forecast. Minutes from the March meeting of the Federal Open Market Committee show the U.S. central bank plans to begin to run off its $9 trillion balance sheet at a $1 trillion per year annualized pace beginning in May. And St. Louis Fed President James Bullard said today he’d like to see a 3.5% fed funds rate by the second half of 2022 and favors a 50-basis-point hike at the FOMC’s meeting next month. Darius Dale, founder and CEO of 42 Macro, joins Real Vision’s Ash Bennington for today’s Daily Briefing to discuss crude oil prices, Chinese monetary policy, and the Fed’s new hawkishness. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3JkKDM6 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Minutes to the Federal Open Market Committee’s March meeting reveal that the U.S. central bank plans to begin reducing its balance sheet as soon as after the FOMC’s May meeting. Policymakers discussed monthly caps for asset runoffs, $35 billion for mortgage-backed securities and $60 billion for Treasuries. The plan includes a phase-in period of three months, or modestly longer, but the monthly total cap of $95 billion is significantly higher than the last time the Federal Reserve tried to shrink its balance sheet. The Fed’s hawkish tone was underscored by the fact that multiple members conceded that at least one rate hike of 50 basis points may be warranted and that they might have voted for one of that magnitude in March but for Russia’s invasion of Ukraine presenting a new challenge to growth. U.S. equity markets slipped further into the red following the minutes’ release, while the yield on the 10-year Treasury note jumped to a three-year high. Real Vision is in San Diego for this week’s Macro Experience event, where we continue to meet face to face with some of our favorite guests. Julian Brigden, co-founder of MI2 Partners, joins Maggie Lake to discuss the FOMC minutes and the central bank’s efforts to fight inflation while supporting growth on today’s Daily Briefing. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3NLQFsR. Learn more about your ad choices. Visit podcastchoices.com/adchoices

With the minutes of the Federal Open Market Committee’s March meeting set for release on Wednesday, financial markets continue to search for direction. Kansas City Fed President Esther George said today a faster pace of rate increases may be warranted, with 50 basis points on the table for May. Federal Reserve Governor Lael Brainard noted the central bank will raise interest rates steadily and will begin reducing its balance sheet as soon as next month. Brainard, normally a dovish voice, also noted that balance-sheet reduction could proceed “at a rapid pace.” U.S. equity indexes lingered in the red at midday, as bond prices sagged on Brainard’s comments. The question now is how aggressively the Fed will move after having indulged the “transitory” fantasy too long. Real Vision is in San Diego for this week’s Macro Experience event, where we continue to meet face to face with some of our favorite guests. Mish Schneider, Director of Trading Education at MarketGauge.com, joins Maggie Lake to talk about the Fed’s approach to inflation on today’s Daily Briefing. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3LHARWe and check out our new podcast, My Life in 4 trades right here: https://www.realvision.com/podcast/mylifein4trades/page/1 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Today marks 40 days since Russia invaded Ukraine. U.S. equity indexes hold solid gains as we near Monday’s close in New York, with Asian and European stocks having already ended normal trading sessions well in the green. Energy commodity prices continue to react to developments in Eastern Europe, with crude oil rising today on reports the European Union is planning to impose more sanctions on Moscow. A key section of the U.S. Treasury yield curve remains inverted after the two-year exceeded the 10-year last week. The issue of inflation and the question of recession loom ahead of Wednesday’s release of the minutes from the March meeting of the Federal Open Market Committee. Meanwhile, shares of Twitter soared 30% after Tesla CEO Elon Musk revealed in a regulatory filing that he’s taken a 9.2% stake in the social media company. Real Vision is in San Diego for this week’s Macro Experience event, where we’ll have a chance to meet face to face with some of our favorite guests. Thomas Thornton, founder of Hedge Fund Telemetry, joins Maggie Lake to talk markets and stocks on today’s Daily Briefing. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3j6CBvI Learn more about your ad choices. Visit podcastchoices.com/adchoices

In the wake of the pandemic, Jim Bianco believes that “there is a wholesale change underway in the economy.” But is it all doom and gloom from here? Not necessarily. We appear to be in a period of transition, which, historically, has also been a catalyst for economic progression. Bianco introduces Martin Fleming, Michael Drury, and Sal Mercogliano to discuss the changes we’re experiencing today, how they're impacting the economy, and what the future could begin to look like. Recorded on March 13, 2022 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Positioning for a crisis is no easy feat but Mike Green was one of the few traders that was able to profit during the pandemic while others were left asking the same question: “what the hell is going on?” While Green was positioned well for the pandemic, it wasn’t all plain sailing. Just what are the psychological aspects of trading in situations like these? In addition to describing his philosophy at the time, Green reveals his state of mind during the pandemic and some of the methods that helped him stay level-headed while “constantly” second-guessing trades during a period of rampant uncertainty. Filmed on January 20, 2022 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Real Vision co-founder and CEO Raoul Pal joins Maggie Lake for today’s Daily Briefing to talk about volatility across markets, the economy, and geopolitics. Stocks closed out their first losing quarter in two years on Thursday, and U.S. bonds had their worst three-month period in more than 40 years. The eurozone’s inflation rate jumped to another record high in March. Although prices dipped for the fifth straight day today, crude oil is 44.7% higher than it was a year ago, up 32% in February alone. The U.S. economy once again added more than 400,000 jobs in March and the unemployment rate dropped to 3.6%, but companies across many industries say they’re struggling to find workers. And war continues to rage in Eastern Europe. What’s Raoul’s take? Get your questions ready, and drop them on the Exchange: https://rvtv.io/3x1pDYm Learn more about your ad choices. Visit podcastchoices.com/adchoices

President Joe Biden announced a plan to release from the U.S. Strategic Petroleum Reserve 1 million barrels of oil per day for the next six months as part of the federal government’s effort to fight inflation. Releasing 180 million barrels from the SPR is an unprecedented step. But it’s unclear whether it will have a meaningful impact on oil prices. Earlier Thursday, OPEC+ ratified a 432,000 barrel per day production increase as of May, but that increase is in line with the cartel’s plan; it is not responding to oil consumers’ calls for significant output boosts. Oil investors everywhere seem to be holding the line for only gradual production increases, despite the ongoing crisis in Eastern Europe. Bart Melek, Global Head of Commodity Markets Strategy at TD Securities, joins Real Vision’s Ash Bennington to discuss the global crude oil market, current constraints on production and supply, and inflation. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/3IV7RbE Learn more about your ad choices. Visit podcastchoices.com/adchoices

The Japanese yen, long a safe haven, is not reacting to crisis this time around the way it has in the past. In fact, the yen just broke through a key long-term level of technical support and is trading at six-year lows versus the U.S. dollar. But Governor Haruhiko Kuroda continues to defend the Bank of Japan’s yield cap, in place to sustain accommodative monetary policy, despite broader risks to the domestic situation. Our man in Japan, Weston Nakamura, joins Maggie Lake to assess the global implications of the country’s continuing efforts to stimulate growth in the world’s third-largest economy. Then, Maggie welcomes Darius Dale, founder and CEO of 42 Macro, to talk about the Federal Reserve’s fight against inflation, the impact of tighter policy on the housing market, and the employment situation in the U.S. Want to submit questions? Drop them right here on the Exchange: https://rvtv.io/36Zk3uw Learn more about your ad choices. Visit podcastchoices.com/adchoices