Summary of Wall Street Week - Full Show 10/07/2022

00:00:00 - 00:45:00

This week's Wall Street Week covers a variety of topics, including the current state of the economy, unemployment, inflation, and investment advice. There is also discussion of the recent market volatility, with experts offering their thoughts on what the future may hold.

• 00:00:00 In this week's edition of Bloomberg Wall Street Week, Larry Summers presents his analysis of the current state of the U.S. job market, while Brad De Long of Berkeley discusses the broad historical trends of economic development. The Bank of England's quick intervention to prevent a stock market crash is also discussed, and British Prime Minister Liz Truss is criticized for giving up on her economic policies. Finally, reports on the ongoing conflict in eastern and southern Ukraine are given, with President Putin announcing the annexation of territory that his forces did not originally control.
• 00:05:00 The video discusses the tightening of financial conditions, which is expected to lead to a slowdown in the economy, and the effects this has on the Fed's ability to using its only tool - interest rates - to stimulate the economy. Chris argues that we are already in a recession and that the market is overpriced, leading to potential downside risk for investors.
• 00:10:00 This week's main focus is on the current state of the economy, with particular focus on unemployment and inflation. Chris Uhlmann and Aaron Brown from PIMCO and Telstra, respectively, offer investment advice on how to best handle the current market conditions. They note that while the unemployment rate has improved recently, it is still high and won't improve quickly. Chris Ellman from Telstra also discusses how the current market conditions are different from other recessions in recent history, and suggests that investors should be patient and scale back their risk.
• 00:15:00 In this week's Wall Street Week, Chris and Aaron discuss the current state of the stock market, the importance of diversification, and the challenges of the current economy. They also discuss the geopolitical risks associated with oil prices and the need for investment in energy infrastructure.
• 00:20:00 This week, China's stock market opens for the Golden Week holiday, with Japan and Taiwan following suit later in the week. In the U.K., government U-turns are a major focus, while U.S. inflation data is expected to show conflicting signals. Earnings season is finally here, with major reports out on Pepsi, J.P. Morgan, Morgan Stanley, Delta Airlines, and UnitedHealth.
• 00:25:00 The video discusses recent economic data, which suggests that inflation is not going down as quickly as the Federal Reserve expected. The chairman of the Federal Reserve, Jerome Powell, says that the numbers do not change the picture that the economy is too strong to be an economy where inflation is going down.
• 00:30:00 This week, Wall Street analysts discussed inflation concerns and the effects of the OPEC plus decision to reduce production limits. Additionally, Larry Summers, a Harvard professor and former Treasury Secretary, discussed the need for a different energy strategy.
• 00:35:00 Brad Templeton argues that the 20th century was a "major era" in which technological progress increased exponentially, culminating in the present day. He discusses the reasons why this era ended in 2010, concluding that it was due to the end of the Cold War and other major political struggles.
• 00:40:00 In this video, Professor Brad DeLong of UC Berkeley discusses the history of the 20th century and how it has been marked by a loss of social and economic knowledge. He also discusses the effects of wealth and income inequality on cohesion, and how this has led to the current problems we are facing.
• 00:45:00 This week, tax cuts were announced in the UK, but they were met with backlash from the market, and the Bank of England stepped in to help. In the US, Elon Musk changed his mind about whether he would pay for Twitter, and it was revealed that he had been wrong about the cost.