Marc Ostwald, strategist at ADM Investor Services International dissects BOE’s bazooka, calls for fiscal stimulus and challenges traditional economic concepts on today’s Finance show. He is joined by Tip TV’s Zak Mir and Charles Gibson, Head of Mining at Edison Research.
Ostwald states a 25 basis point rate cut doesn’t matter at all and other major stimulus measures introduced by BOE are unlikely to seep into the real economy, given the effectiveness still depends on credit demand, which stays anemic.
He also downplays the importance of today’s Non-farm payrolls report, since equity markets are yet to go through the usually tough month of August and economic data could take a turn for the worst ahead of the next Fed meeting, which is 45 days away.