Bloomberg Daybreak: US Edition Global Stocks Recoup Tariff Losses; President Trump Visits Saudi Arabia
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May 13, 2025 Global stock markets are taking a breather after a brief tariff truce between the U.S. and China, as inflation concerns loom large. President Trump’s visit to Saudi Arabia signals strengthened ties with Crown Prince Mohammed bin Salman. Meanwhile, Treasury Secretary Scott Bessent highlights the European Union's trade negotiation challenges, suggesting a slow path to agreement. The discussion also touches on the potential for increased investments from the Middle East into the U.S. and thrilling highlights from the NBA playoffs intersecting politics.
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Mutual Need Ends Tariff War
- Both the U.S. and China found the tariff war unsustainable for different reasons.
- The U.S. needed critical goods from China, while China relied on the U.S. market for sales and manufacturing.
Market Rally Supported by Trade Truce
- Goldman Sachs raised its S&P 500 target amid easing U.S.-China trade tensions.
- Despite improved outlook, earnings forecasts remain uneven with recession risks.
Inflation Expected Despite Gasoline Drop
- April is expected to show strong inflation increases despite falling gasoline prices.
- Housing costs remain pivotal indicators for Fed’s 2% inflation goal.