Reporti

Theresa May has presented her Brexit strategy with the full support of her cabinet, apparently. Phil Dobbie asks NAB’s Ray Attrill what impact it’ll have on the pound today and whether it will wash with the EU, who might see it as another “cake and eat it” proposal. They also look at why Friday’s non-farm payrolls had such a big impact on the US dollar. Plus, the trade war kicks off – and with Kim Jong Un unhappy with the latest round of talks. Could that see more risk-off sentiment or have the markets grown weary of the rhetoric?

COurtesy by CommSec

Overnight we saw US stocks fall and bond yields up, but the real action has been in China with a weakening of the Renminbi reportedly kept under control by lots of buying from state banks. NAB’s David de Garis talks through the impact of the PBoC’s assurances that they will keep the exchange rate stable, in particular what it means for the Aussie and Kiwi dollars, who finished the night in positive territory. Phil Dobbie also asks whether Sweden’s inflation forecasts to extend to Europe soon – and they look briefly at Theresa May’s new plan. Can she push it through without losing a few in her cabinet? Oh, and happy 4th July!
COurtesy by NAB Morning call

Courtesy by The Conversation

University of Canberra Professorial Fellow Michelle Grattan and Director of the University’s Institute for Governance and Policy Analysis Mark Evans discuss the week in politics including the announcement that Labor would repeal company tax cuts, the upcoming by-elections, and the national energy guarantee.
Courtesy by University of Canberra

The US wants its allies to all cut imports from Iran to “zero” or face possible sanctions themselves. As NAB’s Ray Attrill explains, it pushed oil prices higher today, whilst equities have rebounded from yesterday’s caution. Phil Dobbie asks Ray whether the Fed has highlighting any changes to its monetary approach given the escalating trade tensions. They also discuss the flattening yield curve, and how the Bank of England’s MPC “rookie” talked the pound down today.
Courtesy by NAB Morning Call