Listen: China, SOX And Federal Reserve discussed on Mottek on Money
"This is number one for your business and consumer news here in southern California. I'm Frank Motech U S China trade tensions and concerns about global economic growth. Hit the financial markets hard over the past week SOX took a dive, including dramatic one day drop of nearly eight hundred points for the Dow Jones industrial average on Tuesday Thursday. The Dow recovered nearly all of us seven hundred point intraday laws, and we saw nearly five hundred sixty point closing drop on Friday, the major stock market averages plunged between four and a half to five percent for the week. The worst week the market has seen since March with the Dow shedding eleven hundred fifty points in what was a shortened trading week markets were closed Wednesday for the national day of mourning honoring former President George Hw Bush oil spiked as OPEC and Russia oil production, bitcoin and other crypto currencies tanked John picks remained solid with the latest jobs report showing the nation's unemployment rate holding steady to near fifty year. Low of three point seven percent hiring coming in at one hundred fifty five thousand with me now, Dr Mohamed El Oriente economic. Visored ambiance, the former pimco CEO Newport Beach Palmer. Thank you very much for coming to the line this weekend, and give us your view. The volatile market action. We solve the past week to what we have here is increased volatility because the market have realized that they can no longer rely on the Federal Reserve to cover that back, and you've seen this in terms of the intraday moves you've seen frequency of two big moves, and you've also seen that in terms of how investors are creating rallies has an opportunity to sell rather than opportunity to come back in and establish a floor. So it's a fundamentally different market from year ago. And I think the main reason is not that we had increased political uncertainty and trade we had that last year. The main reason markets can no longer rely on the fed to repress volatility. The fed very much in the spotlight ahead of another big meeting. What's the expectation on the interest rates here? Go ahead and hike in December will be the fourth hike this year, but they're going to be a little bit more cautious about next year. They're going to in my view suggest Dan prior policy guidance, which was quite aggressive, much more. So than what the market expects. They're going to suggest that prior guidance is much more flexible and much more quoted data dependent on quote, quite a bit of uncertainty swirling involving the US and China trade relations. And then of course, the arrest of a prominent Chinese tech exec. Also complicating the situation this past week. I give us your view of what's happening in in the expected outcome of all this trade side, actually this week was signaling a little bit better overdue going into the week. We had indications both from the Chinese and the American side that the meeting between President Trump and she went well in Argentina and. That ninety day deadline to. Tensions my own view, as you know. And I've said this from the beginning of the year is that at the end of the day. There will be an agreement and China would realize that it needs to make concessions just like. Korea Canada, Mexico your life. So that was good. The problem is that the markets on not getting support from fundamentals because growth in the rest of the world, particularly Europe and trying to more uncertain gives your view of where the market goes from here. I think we're going back to a more normal level of Pollock. I know that it seems high unsettling if you're used to the volatility of last year, but last year was abnormal. What we're doing is going back to a more normal level of volatility and investors should realize that that is the reality not just for December. But also for next year, and they have to be comfortable with deputy polio's to be able to hold food is renewed volatility, which again is simply going back to his talk with averages on the line with doctor Muhammed Al the chief economic adviser. The former pimco CEO, Newport Beach, mom would stay with us to continue the conversation gets your views on what's happening the bond market as well as bitcoin and some other hot topics that are more straight ahead on Motech on what does building better Bank. Look like, it starts with building Capital, One cafes warm."