Bloomberg Talks Mike Wilson Talks Tariffs and Market Reaction
Jul 11, 2025
Mike Wilson discusses how President Trump's tariff strategies are influencing current market behaviors. As equities retreat from record highs, he warns of caution due to potential shifts affecting weaker sectors. The dollar strengthens, while the yen falters, alongside rising Treasury yields. Despite these challenges, Bitcoin surges past $118,000, showcasing a willingness among some investors to take risks. The conversation also highlights trade risks, the Fed's interest rate stance, and the competitive outlook between U.S. stocks and international equities.
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Trump's Negotiation Pattern Known
- President Trump's trade strategy is a cyclical negotiation style involving aggressive stakes followed by back-and-forth adjustments.
- Markets have adapted, reacting negatively then positively as negotiations unfold, but prolonged uncertainty is unsustainable.
Q3 Could Reveal Tariff Impact
- The market might try to influence trade policy outcomes, but exhaustion could occur around Q3.
- Tariff impacts on company margins and pricing may become evident in Q3, affecting stocks and inflation outlook.
Monitor Consumer Companies' Guidance
- Watch for negative tariff impact comments during Q3 earnings, especially from consumer companies with less pricing power.
- Early Q2 reports should be fine; multi-national firms and sectors like financials face less tariff risk.