Key Takeaways from the week - Nomura

Analysts at Nomura offered a snap shot of the key takeaways from last week's trade.

Key Quotes:

"Policy Watch: July FOMC Minutes Recap The three most interesting aspects of the minutes from the July FOMC meeting centered on the balance sheet, inflation and financial conditions. Overall, markets perceived the minutes as mildly dovish. We maintain our forecast that the next hike will take place at the December meeting. However, we think the minutes marginally lowered the likelihood of a December rate hike. 

Special Report: NAFTA Renegotiations Begin NAFTA renegotiations began on 16 August 2017 with trade representatives from Canada, Mexico and the US. The opening remarks from US Trade Representative (USTR) Lighthizer were stronger and more antagonistic than expected, highlighting the main contention in these talks: US demands that Canada and Mexico will not agree to. 

First Insights: Yellen at Jackson Hole: A Preview Chair Yellen is scheduled to speak about “Financial Stability” at Jackson Hole next week. We expect her to defend the current regulatory regime for large financial institutions. But she may also argue that the need to promote financial stability may be another reason for the FOMC to increase their targets for short-term interest rates later this year, even if inflation is slow to pick up. 

Special Report: President Trump and Controversies: What Are the Risks and Implications? President Trump’s decline in popularity since the election and increased isolation from all but his most ardent supporters increases a number of risks to the economy and to markets. It will be important to monitor Trump’s popularity among not just the entire population, but especially Republicans, which remains high. Additionally, it will be important to monitor who he keeps as his advisors and whether he maintains strong ties to the business community."