OMICRON VARIANT SPREADS FOR
MORE ON THIS WE'RE JOINED BY
OCTAVIA ME RENZI ACTIVIA RENZI
IS THE CEO OF OPENNESS OUT
WE'LL SEE GREAT TO HAVE YOU
HERE WITH US OCTAVIO LET'S JUST
DIVE RIGHT INTO IT THE MARKETS
FOR THE PAST FEW WEEKS.
IT'S BEEN A ROLLER COASTER AS
THE OMICRON VARIANT HAS MOVED
SO RAPIDLY WE ALSO CONTINUE TO
DIGEST EVEN MORE OF THAT
DECISION FROM THE FED. WE'RE
JUST SAY WE ARE RIGHT NOW.
>> WELL I THINK RELIES ON THE
FRONT OF THE STATE IN TERMS
WHAT THE NEXT STEP IS GOING TO
BE AND HOW AGGRESSIVE THEY ARE
GOING TO
STAY PUT. I THINK IS REALLY
INTERESTING IF YOU LOOK AT THE
BOND MARKETS IS THAT THE YIELDS
ON 10 YEAR TREASURIES MOMENT
HAVE BASICALLY HOME WITH JUST
UNDER ONE 0.4% HAVEN'T REALLY
MOVED THAT MUCH AND SO I GUESS
THE BOND MARKET IS SORT OF
IOWA'S TODAY COOLING TAPE HOUSE
BLOW FOR THE FED AND SAYING
THAT WE DON'T REALLY THINK YOU
CAN TAKE THIS BECAUSE
YOU WOULD EXPECT TO SEE
INTEREST RATES
RISE MORE QUICKLY WILL THEY USE
ON 10 YEAR BONDS TO RISE MORE
QUICKLY THAN THEY HAVE ALL RISE
A BIT AT LEAST AND THEY REALLY
HAVEN'T. SO I JAY POWELL THINK
YOU MIGHT BE AND HE MIGHT SORT
OF SAYING SOME STAGE IN THE
NOT-TOO-DISTANT FUTURE WITH
OMICRON ABOUT THAT
WE NOW HAVE TO ACTUALLY
CONTINUE UP ON PURCHASES AND
WENT ON TO NATIONAL BE ABLE TO
TAKE WITH THEM COME BACK
AND THAT IS NOT GOING TO
SURPRISE SOME BY TO PROVIDE
SOME SUPPORT FOR THE MARKET
NORMALLY WELL-MEANING BUT SOME
SUPPORT FOR THE MONTH OF APRIL.
THERE IS A RISK IF HE DOES CUT
BY HOME BEEN PURCHASE IS THAT
HE WILL CRASH THE MARKETS
QUITE BATTLE.
>> WELL, OK AND SO WITH THAT IN
MIND WITH SECTORS WOULD YOU BE
WATCHING MOST CLOSELY IF THAT
TYPE OF DECISION DOES GETTING
>> WELL IF WE'RE GOING TO HAVE
A VERY STRONG AND IS THE NEXT
GENERATION IT AND
READ IT PUSH UP INTEREST
QUICKLY DIDN'T IT WENT STRAIGHT
TO I DON'T THINK ANY ESSEX WAS
SAFE BECAUSE SO MANY
ASSET CLASSES BASICALLY
DEPENDENT NOW ON QUANTITATIVE
EASING ONLY SLEEK WISHING TEXAS
FROM THE CENTRAL BANK, THE
SIGNATURE OF THE EQUITIES
MARKETS IS TRUE THE BOND
MARKETS TO THE REAL ESTATE
MARKET'S HISTORY OF CRYPTO IS
PROBABLY TRUE GOLD
AND SILVER AND WAS THIS
COMMODITY IS SO I DON'T THINK
THERE'S ANY REAL PLACE TO HIDE
OF THEM JUST PURE CASH IF THAT
IS WHAT'S GOING TO UNFOLD.
I THINK IS LITTLE DOUBT ABOUT
JAY POWELL WHEN HE FIRST TOOK
OVER AS CHAIR OF THE FED IN
2018 WAS OVERSEEING A SORT OF
AGGRESSIVE INCREASE IN INTEREST
RATES AND THE SOON AS THE
EQUITIES MARKETS COMPLAINED
ABOUT IT AND CORRECT AND HE
BACKED OFF AND SAID OKAY WITH
THAT WE'RE GOING TO CUT
INTEREST RATES BACK DOWN TO 0
TEAM MIGHT WELL DO THAT AGAIN
THIS TIME I DON'T THINK HE
NECESSARILY HAS THE STOMACH FOR
A MAJOR
MARKET CORRECTION. BUT THAT
RISK IS OUT THAT I MEAN HE
CERTAINLY HAS PUMPING ENOUGH
MONEY TO TO RAISE WILL THESE
PRICES I THINK THE NSA CLASS
THAT IS IS SAFE IN THAT
SCENARIO IS CASH VERY RACIAL
TERM BONES AND AND REAL
PHYSICAL CASH.
>> WITH THE OMICRON VARIANT HOW
MUCH ECONOMIC KIND OF DETRIMENT
DO THINK HAS ALREADY BEEN
INCURRED
OR OR HAVE WE YET TO SEE AT
THIS POINT IN TIME TO THAT THE
FED WILL HAVE TO TAKE INTO
CONSIDERATION.
>> WELL I THINK THE
ONLY CRUMBS SO FAR THE U.S. HAS
BEEN QUIETLY YOU SHOULD SO WE
HAVEN'T SEEN THE KIND OF BIG
BIG INCREASES IN TERMS OF
COMMUNICATION WITH THE ONLY
TIME WILL TELL SO WELL THERE
IT IS I DON'T EVEN KNOW
ANYMORE. IT'S A LOW STRIKE OF
WHAT THE EPIDEMIOLOGISTS ARE
SAYING THAT THE CITY IN EUROPE
IN MANY MANY COUNTRIES I WAS IN
VERY VERY STUFF, THE STEEP
INCREASES IN THE AMOUNT OF
COVID-19 CASES AND THAT'S BEEN
VERY CONCERNING IN TERMS.
WHAT HAPPENS THE ECONOMY THAT
COULD BE SEEING THE LOCKDOWNS
BASICALLY COMING TO THE FACT
THAT SHE WILL BE EUROPE NOW
HE'S TALKING ABOUT IN VARIOUS
COUNTRIES AND THE COUNTRIES
ACTUALLY HAVING INTIMATE SO
THAT IS WHAT I THINK THE CASING
OF SEEMS THAT US THERE IS MAYBE
A MONTH BEHIND IN TERMS OF
THOSE INCREASES BUT I WOULD
EXPECT TO SEE THEM COME THERE
AS
WELL EVENTUALLY WE'LL HAVE TO
SIT A STOP TO THINK ABOUT LOOK
DOWN TO LUBRICATE IT DOE