The 10-Minute Take

"The 10-Minute Take", a new podcast series dedicated to providing the point of view of market experts on events unfolding around the globe.

King Dollar Steps Back

Published March 27, 2020

Featuring George Davis, RBC Capital Markets Chief Technical Strategist, Fixed Income, Currencies & Commodities

While stocks have been surging, the US dollar has been on a week-long slide. The correction comes after an extraordinary run-up in the dollar in early March, when investors fled to the greenback’s higher ground and corporates followed, to ensure they were dollar-funded heading into an economic crisis. The prospects now of massive fiscal stimulus and concerted central bank intervention have investors looking anew to the euro, pound and even the Canadian dollar. George Davis, RBC Capital Markets’ currency strategist, explains what lies ahead.


Can Trump Bring Peace to the Oil War?

Published March 26, 2020

Featuring Helima Croft, RBC Capital Markets Global Head of Commodities Strategy

Donald Trump is using every diplomatic tool to stop the oil war unleashed by Russia and Saudi Arabia, betting that neither can sustain themselves for long at $25 a barrel. But the Russians may be betting that Trump – or at least U.S. oil producers – will blink first, by scaling back American production and allowing OPEC+ to again drive global markets. Even if the oil powers agree to stabilize markets at a higher price, it may take longer than many are expecting, as the COVID-19 pandemic decimates global growth. Helima Croft, RBC Capital Markets Global Head of Commodities Strategy, joins us to explain.


This is the Backfill. 

Published March 25, 2020

Featuring Tom Porcelli, RBC Capital Markets Chief U.S. Economist 

Washington seems to finally have bipartisan agreement for a $2-trillion stimulus package. Tom Porcelli, RBC Capital Markets Chief U.S. Economist, says it’s enough to “backfill” the U.S. economy until mid-May. How will the world’s economic engine fare after that? That depends on the success of social distancing. But Porcelli thinks the creatively-driven U.S. economy – from media streaming to food services – could be more resilient than markets have assumed. And if U.S. consumers come out of lockdown and unleash their pent-up demand, the world will notice.


Have Markets Found a Bottom?

Published March 24, 2020

Featuring Craig Wright, SVP and Chief Economist, RBC

After one month of declines, 10,000 points off the Dow and a lot of “announcement indigestion,” RBC’s Chief Economist Craig Wright says markets are still searching for a bottom. They’re unsure of how to price so much new risk, all at once. Central banks are also struggling to assert themselves, while governments have not been able to get enough new money into the economy. Even when the trillion-dollar checks are cut, will consumers spend and businesses invest?


‡ For relevant conflicts disclosure, please visit our Disclosure Lookup.
RBC Economics provides RBC and its clients with timely economic forecasts and analysis.


 

John Stackhouse
Senior Vice President, Office of the CEO, Royal Bank of Canada