Bloomberg Talks Apollo Global Management President Jim Zelter Talks Tariffs
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Apr 3, 2025 Jim Zelter, President of Apollo Global Management, shares his insights on tariffs and their implications for the U.S. economy. He discusses 'macro paralysis' and its effect on corporate planning amid fluctuating geopolitical tensions. Zelter predicts a 50% chance of recession, emphasizing how investment strategies must adapt to the shifting economic landscape. He also tackles challenges like rising interest rates and the evolving sentiment in European markets, suggesting private market solutions as a response to these emerging risks.
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Shifting Global Order
- The current administration's focus on revitalizing American industry, including tariffs, shouldn't be a surprise.
- This approach signals a shift in the global world order and the role of US manufacturing.
Macro Paralysis and Private Markets
- Macro paralysis, caused by uncertainty, has slowed down M&A and ECM activity.
- This situation creates an opportunity for private markets to play a larger role in financing corporate plans.
Risk and Equity Returns
- The execution of the administration's objectives, especially regarding tariffs, is raising questions.
- The increased risk has elevated the hurdle for equity returns, making the risk premium higher.