Deals, earnings and central banks – a busy week ahead

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NAB Morning Call 17 min 2 speakers 8 chapters transcribed 19 days ago
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What are the key geopolitical developments between the US, China and Canada this week?

Phil Dobbie 0:01
Well, things are about to get very, very busy. We have the Fed, the Bank of Canada, the Bank of Japan this week, and that G Trump meeting now going ahead with a deal that sounds like it's more or less sorted. Can Canada calm the waters over their most recent tariff threat? And US CPI on Friday going slower than expected, all the more reason for the Fed to cut, presumably this week. Plus earnings results for the big tech players as well. It's a busy, busy week. Are you ready for it? It's Monday, it's the twenty seventh of October, twenty twenty five. It's the morning call from Nab. Good morning. Well the US dollar was flat on Friday, same for the Aussie dollar, which was around sixty five point one US cents.
Phil Dobbie 0:40
But the US dollar was half a percent stronger across the week and there have been some moves today uh in early trade to talk about. Uh US shares moved a fair bit on Friday up one percent for the Nasdaq, but over the week it was the Nikai and Hang Seng that did the best. But they were both up three point six percent and European bond yields moved high on Friday up Four basis points for ten year buns similar across much of Europe at five in France, and gold fell again on Friday. It was down one point seven percent over the week. Oil down a little on Friday, with Brent finishing just under sixty-six a barrel, but it was up seven point six percent uh across the week, even with that slight drop on Friday.
Phil Dobbie 1:17
And we start this week with Nabs Rodrigo Catrilla, a week that we'll see President Xi and President Trump Trump meeting up uh with a discussion uh well the discussions are so well advanced ahead of this meeting, aren't they, that Scott Bessant has said that the threat of that hundred percent tariff is now effectively off the table. So what are we expecting to see?
Rodrigo Catril 1:39
Yeah. Uh morning Phil, yes. So it's been uh an interesting uh developments over the weekend and even overnight. Um Uh the rhetoric coming from both uh sides uh is very, very positive. You know, I think that one of the headlines was a very successful framework for President Xi and Trump to to meet. Um and when we look at the details, there's there's actually quite a lot that they hope uh and intend to cover. Um so first of all the fact that the meeting is positive, uh, but then they want to uh you know over go over export controls fentanyl shipping levies which has been a big thing of late. Um also discussed a deferral with China Rare Earth Exports, which at this moment is suggested it will be uh basically a delay on any on in any restrictions for a year.

How did the US‑China tariff threat change after the Trump‑Xi meeting?

Rodrigo Catril 2:27
Um then in addition to that uh the US has agreed to keep its current export controls in place so not no longer that threat as you say of a hundred percent tariffs on Chinese goods. Um and then in addition to that, there's also uh one big headline saying that China is anticipated to to buy a substantial amount of soybeans. Um and then of course there's also the TikTok uh cell which is p uh not on the agenda. Um but then uh to make it even more interesting, uh President Trump also is h hoping to enrol President Xi on a global peace plan, uh which obviously includes the discussions around the Ukraine. Um and then as you say, all the vibes coming in terms of the the rhetoric and and the tone used is is very positive.
Rodrigo Catril 3:17
So um hopefully it it ends up being quite good for for you know for everyone. Um and in terms of the reaction it's interesting because obviously there's not a lot of markets that are open, uh but the OSI in particular has responded quite nicely. Um as you mentioned the the the OSI closed the week around sixty five thirteen. Uh but now Trey is a sixty five forty. So so a nice little spike if you like reflecting that positivity and sentiment.
Phil Dobbie 3:43
To start on a good note, isn't it, at the beginning of the week? And um it seems also President Trump so I mean it does mean, you know, through Rare Earth they can buy rare earths from China, uh Australia's unique advantage might might have disappeared. I guess there's gonna be continued demand. And he's also talking to or the US is talking to Malaysia as well.

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