Bloomberg Daybreak: Asia Edition Equities Rise on Economic and Trade Optimism
May 28, 2025
Vis Nayar, Chief Investment Officer at Eastspring Investments, and Clark Geranen, Chief Market Strategist at CalBay Investments, dive into the recent Wall Street rally spurred by a surge in consumer confidence and accelerating trade talks with the EU. They discuss the potential for Asian and emerging markets amid a weakening dollar and the allure of Chinese investments. The conversation also touches on the implications of tariff delays, shifting M&A expectations, and the complexities of global supply chains in the context of ongoing trade tensions.
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Equity Rally Signals Investor Fatigue
- The equity market rallied due to faster US-EU trade talks and rising consumer confidence.
- However, low trading volume suggests investor fatigue and potential exaggeration of price moves.
Deficits Cloud Bond Markets
- Concerns about large government deficits will continue to cloud global bond markets.
- The lack of a solid plan to fix deficits increases worry about financial stability.
Trade Deals Key to Avoid Recession
- Recent tariff delays and progress in trade deals are key to avoiding stagflation or recession.
- A trade deal before summer is crucial to support economic stability.