Trump Tariff Threats and Debt Concerns Weigh on Markets
whatshot 9 snips
Jun 2, 2025
Tensions between the U.S. and China loom large as tariff threats create ripples in the market. Experts discuss the precarious state of the U.S. economy and the looming debt crisis that might still catch investors off guard. With a dollar decline and rising Treasury yields, the landscape looks uncertain. Amid switches in consumer habits, Gen Z is favoring casual dining over fast food, seeking communal experiences. Meanwhile, AI is revolutionizing advertising, benefiting smaller brands while raising quality concerns for bigger players.
26:38
forum Ask episode
web_stories AI Snips
view_agenda Chapters
auto_awesome Transcript
info_circle Episode notes
insights INSIGHT
Productivity and Tariff Impact Delay
Productivity is currently okay but hasn't yet accelerated due to AI and new technologies.
The impact of tariffs on the economy has been minimal in hard data but visible in soft data, suggesting a delayed effect.
insights INSIGHT
Treasury Yields in Volatile Range
Treasury yields and fixed income returns are stuck in a volatile sideways pattern due to tariff and inflation uncertainties.
Tariffs initially increase inflation, but longer term may cause slower growth and lower inflation, creating mixed effects.
volunteer_activism ADVICE
Fixed Income Strategy: Stay Cautious
Stay with benchmark or shorter durations in bonds due to uncertain risk premium and lack of reward.
Favor upper-end high yield credit and international exposures as the dollar weakens and coupons remain favorable.
Get the Snipd Podcast app to discover more snips from this episode
Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Surveillance hosted by Tom Keene & Paul SweeneyJune 2nd, 2025 Featuring: 1) Stephen Stanley, Chief Economist at Santander, joins for an extended conversation on the outlook for the US economy, lower consumer spending, and potential for a shallow recession in the US. Global stocks started the new month under pressure due to a flare-up in global trade tensions and geopolitical uncertainty. Gold is heading for its biggest gain in almost four weeks as geopolitical and trade tensions revived demand for haven assets. 2) Kathy Jones, Chief Investment Strategist, Fixed Income at Charles Schwab, discusses bond market warnings and why the Fed won't be coming to the rescue any time soon. The dollar fell 0.5%, extending a streak of five monthly losses, while Treasury yields rose across the curve, with the 10-year rate up four basis points to 4.44% in the early part of the morning as risk appetite dissipates. 3) Maya MacGuineas, President of the Committee for a Responsible Federal Budget, talks about the House bill "debt fiasco" and why markets haven't fully awaken to the debt and deficit problem in the US. It comes as Treasury Secretary Scott Bessent says the US "is never going to default" as the deadline for increasing the federal debt ceiling approaches. Bessent declines to specify an "X date" for when the Treasury will run out of cash, but says the goal is to bring the deficit down over the next four years. 4) Henrietta Treyz, co-founder at Veda Partners, talks about President Trump threatening an increase to steel and aluminum tariffs, how the tax bill could be transformed in the Senate, and other DC headlines. Uncertainty prompted by President Donald Trump’s trade agenda picked up after China and the US accused each other of violating a trade deal concluded last month. Trump also said he would double tariffs on steel and aluminum imports. Meanwhile, Ukraine staged a dramatic series of strikes across Russia, deploying drones hidden in trucks deep inside the country to hit strategic airfields. 5) Lisa Mateo joins with the latest headlines in newspapers across the US, including an NYT story on Gen Z's interest in chain restaurants and a Business Insider story on AI already taking human jobs.
Bloomberg Surveillance