Nick Batsford, CEO of Tip TV, Zak Mir, technical analyst at shareprofits.com, and Mike Ingram, strategist at BGC partners, opened the show at Tip TV today discussing the upcoming FOMC meeting, and the impact of China on the commodity market.
Eyes on FOMC statement and rates to rise in September.
To begin with, Batsford questioned Ingram on the FOMC, with the later commenting on how eyes will be on the statement to be released at 7, with many ready to compare this to the previous one. Ingram added his view that the US rate hike will take place in September, noting that the market is pricing in one rate hike in 2015.
This links to his view of the Dollar that he believes to be going onward and upward in the near future. He ends the section by elaborating that the UK will follow the Fed on rate hikes, with the UK rise likely to come in line with inflation reports, this either November or February.
China demand creates pincer on commodities.
Ingram maintained his view that the 7% growth target in China is unlikely, and that 4-5% is much more realistic. He developed the idea by noting that generally the China commodity bid has fallen, which along with the oversupply, resulting from distressed M&A activity leading to market consolidation, has led to a pincer movement on the commodities prices.