Bloomberg Daybreak: Asia Edition Fed Uncertainty and Trade Pivots
Jul 17, 2025
Ecaterina Bigos is the CIO for Asia ex-Japan Core Investments at AXA Investment Managers, and Rich Mullen is the Founding Partner and CEO at Pallas Capital Advisors. They discuss the volatility in Asian stocks influenced by U.S. trade policies and the Federal Reserve's future. Bigos highlights how tariffs are reshaping trade dynamics, particularly towards ASEAN countries. Mullen provides insights on market reactions following softer inflation data and speculations about Fed leadership, emphasizing the potential for significant market shifts.
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Chinese Export Resilience Strategy
- Chinese exports have shown resilience through tariff uncertainty by redirecting trade through ASEAN to the U.S.
- This redirection eased potential impacts of tariffs and supported external growth for China.
Asian Growth Faces Deceleration
- Asian economies have benefited from tariff delays, front loading, and transshipment but growth is expected to decelerate.
- Tech and AI chip demand provide resilience but overall Asia including China will slow down.
AI Chip Export Policy Impact
- Easing some AI chip export restrictions gives China more room to advance technologically.
- The U.S. carefully limits high-performance chip exports while using exports as negotiation leverage.