Daily Briefing – October 15, 2020

Published on
October 15th, 2020
Duration
32 minutes


Daily Briefing – October 15, 2020

Daily Briefing ·
Featuring Haley Draznin, Ed Harrison, and Roger Hirst

Published on: October 15th, 2020 • Duration: 32 minutes

Managing editors Ed Harrison and Roger Hirst analyze a choppy day of global market action. They look at European equities as well as currency swings in the Euro and the Australian dollar. Roger looks at gold, and Ed analyzes the effect of narrowing net interest margins on bank earnings and yield curves. They also discuss central banks' role in facilitating fiscal stimulus as well as global debt levels and zombification. In the intro, Haley Draznin analyzes price action, Morgan Stanley’s earnings, and the re-emergence of COVID-19 lockdowns in Europe.

Comments

Transcript

  • NL
    Nicola L.
    21 October 2020 @ 14:31
    How do you define a bank as a zombie? I know that companies can be defined as zombies if the ratio EBITDA/Interest expense is lower than 1. What about banks?
  • MH
    Markus H.
    16 October 2020 @ 14:22
    What about the topics nobody thinks about, for example war, black out or bank run?
  • SJ
    Sean J.
    16 October 2020 @ 14:17
    Haley, Please don’t take this as derogatory. Morgan Stanley is not a traditional bank. It’s a wirehouse brokerage and investment bank. They don’t have the massive lending portfolios of Citi, BofA & Wells. Thus, their fortunes often look quite different, as they are far more similar to a Goldman Sachs (which also reported starkly different results than the banks). Thank you for your hard work, nonetheless.
  • JL
    Jason L.
    16 October 2020 @ 12:38
    Great recap at the beginning. Great interview. Always a fan of RVDB.
  • MH
    Matthew H.
    16 October 2020 @ 04:43
    @Roger great interview. Amazing vintage Jacket. Carnby Street by any chance?
    • RH
      Roger H. | Real Vision
      16 October 2020 @ 11:28
      www.80scasualclassics.co.uk Fila, Tacchini, Ellesse - all the greats!
  • DO
    DIOGO O.
    16 October 2020 @ 11:15
    excellent !! summarized a lot of the current trends! Cheers for you Guys!
  • AB
    Alastair B.
    16 October 2020 @ 04:54
    Are you allowed to go to the pub where you are Roger?
  • DP
    Duane P.
    16 October 2020 @ 03:19
    The architecture of Roger's home looks rather European...
    • JD
      Jonathan D.
      16 October 2020 @ 04:44
      His jacket is super Eoropean.
  • OT
    Omar T.
    16 October 2020 @ 01:53
    If the fed does yield curve control on long end wouldn’t that kill state and local governments ability to borrow at low rates and corporates as well?
  • zs
    zachary s.
    16 October 2020 @ 01:23
    Roger came out strong today. Great briefing!
  • TC
    Timothy C.
    16 October 2020 @ 00:14
    Agree in general with this view. Feels like the yield curve has to have some level of "hockey stick on its side" curve. Fed can't control the long end without more SPV activity which will be interesting...
  • VG
    Vaidotas G.
    16 October 2020 @ 00:00
    As always, great interview with Roger! Regarding banking sector and the global economy as a whole, could series of bankruptcies among European banks (firstly, triggered by some major events, such as a significantly underestimated impact of COVID-19 or an unexpected default by one of a bigger banks in Europe) lead to U.S. banking sector defaults and a global economy collapse? Even though European banking sector is way smaller compared to the U.S., could that potentially lead to a very similar results as in the last financial crisis? I understand that the question has way too many possible answers, but could you please comment what are your opinions on what are the possible results on the global economy if we see lots of defaults in Europe?
  • SC
    Shelley C.
    15 October 2020 @ 23:50
    Great update on European stocks and Euro currency from Roger, thank you!
  • LA
    Lawrence A.
    15 October 2020 @ 23:41
    Roger got a haircut. Bullish.
  • NL
    Nikola L.
    15 October 2020 @ 23:32
    "Europe kicks the can better than the US" - consider it stolen.