PIMCO's Sundstrom Previews BOJ, ECB Policy Meetings

The transcript discusses the speculation around the Bank of Japan's (BOJ) potential policy changes, focusing on yield curve control and inflation challenges. It highlights Japan's economic issues, including disappointing PMI numbers and corporate cash reserves. The conversation shifts to the European Central Bank (ECB), where expectations are for minimal policy changes, with attention on Mario Draghi's leadership and the potential impact of global economic conditions on future decisions.

What is the primary concern for the BOJ according to the discussion?

• Currency exchange rates

• Trade balance

• Inflation targets

• Financial stability and yield curve shape

What economic data in Japan is mentioned as disappointing?

• PMI numbers

• Unemployment rate

• GDP growth

• Retail sales

What is the expected outcome of the ECB policy meeting?

• Increase in interest rates

• Minimal changes and a wait-and-see approach

• Cancellation of future meetings

• Significant policy changes

What is the potential economic condition discussed for late 2019?

• Stable growth

• Deflation

• Recession

• Economic boom

What is the impact of the US tax deal expected to be by late 2019?

• Increase in inflation

• End of the economic boost

• Continued economic growth

• Decrease in unemployment