Bloomberg Daybreak: Asia Edition Trump Tariff Deadline Rattles APAC Markets
Jul 2, 2025
Shehzad Qazi, COO of China Beige Book International, discusses the impact of Trump's tariff policies on Asia's markets. He reveals insights into China's economic strength and the balancing act leaders must perform amidst trade tensions. Jeff Grills, Head of EM Debt at Aegon Asset Management, provides valuable analysis on the U.S. labor market, emphasizing its strength despite ongoing tariff issues. Together, they delve into the implications for inflation, monetary policy, and emerging markets, shedding light on the intricate economic landscape.
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China Feels Trade Upper Hand
- The weakening economic data in June doesn't alarm Beijing as they believe they hold the upper hand in trade tensions.
- Export orders, especially from the US, are contracting with manufacturing described as dull for now.
Soft Domestic Demand in China
- Domestic demand in China has softened after initial spending boosts from holidays and subsidies.
- A lack of ongoing incentives and consumer events contributes to the subdued consumption environment.
Property Market Loses Momentum
- Recent gains in China's property market are being reversed in May and June, raising concerns.
- It remains uncertain if this is a temporary dip or a trend towards increased market pain.