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Weekend Edition: Trump is not the end of the world

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Manage episode 487132238 series 1400104
Content provided by NAB - The Morning Call and Phil Dobbie. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by NAB - The Morning Call and Phil Dobbie or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.

Friday 6th June 2025


Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.


Should we be worried about the long-term effects of the Trump presidency? The OECD this week downgraded global growth forecasts because of the uncertainty brought about by his tariff regime. It’s also seeing investors diluting their exposure to US assets. But is this Sell-America trade offset by the TACO trade which assumes Trump will always chicken-out.


This week Phil talks to the FT’s chief economics commentator, Martin Wolf, about the Trump-factor, particularly in relation to the dollar. Key requirements of a reserve currency are safety and stability - have we just lost both of those things? In which case, could another currency take-over, or some sort of basket of currencies, like the IMF SDR? Martin argues the second choice for a reserve currency is a long way behind the US dollar. Also, despite his extraordinary behaviour, financial markets are behaving as though everything is relatively normal. Is the end result that the US President just expedites trends that were happening anyway, driving us to a more fragmented global financial system.


Hosted on Acast. See acast.com/privacy for more information.

  continue reading

1425 episodes

Artwork
iconShare
 
Manage episode 487132238 series 1400104
Content provided by NAB - The Morning Call and Phil Dobbie. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by NAB - The Morning Call and Phil Dobbie or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://staging.podcastplayer.com/legal.

Friday 6th June 2025


Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.


Should we be worried about the long-term effects of the Trump presidency? The OECD this week downgraded global growth forecasts because of the uncertainty brought about by his tariff regime. It’s also seeing investors diluting their exposure to US assets. But is this Sell-America trade offset by the TACO trade which assumes Trump will always chicken-out.


This week Phil talks to the FT’s chief economics commentator, Martin Wolf, about the Trump-factor, particularly in relation to the dollar. Key requirements of a reserve currency are safety and stability - have we just lost both of those things? In which case, could another currency take-over, or some sort of basket of currencies, like the IMF SDR? Martin argues the second choice for a reserve currency is a long way behind the US dollar. Also, despite his extraordinary behaviour, financial markets are behaving as though everything is relatively normal. Is the end result that the US President just expedites trends that were happening anyway, driving us to a more fragmented global financial system.


Hosted on Acast. See acast.com/privacy for more information.

  continue reading

1425 episodes

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