Bloomberg Daybreak: Asia Edition China Activity Preview; Fed Rate Cut Momentum Builds
Aug 14, 2025
Helen Zhu, Managing Partner and Chief Investment Officer at NF Trinity, shares insights on China's economy as it shows signs of slowing growth. She discusses the challenges faced in industrial production and real estate, along with government strategies to boost demand. Meanwhile, Ross Mayfield, Investment Strategist at Baird Private Wealth Management, explores the Federal Reserve's anticipated rate cuts and their impact on markets, emphasizing the correlation between employment data and currency strength. Their conversation reveals the intricate dynamics affecting global trade and economic outlooks.
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China’s Growth: Weak Exports, Muted Domestic Bounce
- China’s export-driven industrial production faces headwinds from weak global PMIs and trade uncertainty.
- Domestic stimulus via infrastructure and consumption supports growth but won’t create a sharp V-shaped recovery soon.
Property Market Healing, But New Home Demand Lags
- China has largely cleaned up highly leveraged, troubled property developers, reducing acute delivery risk.
- Sales shifted toward existing homes, powering a longer-term slowdown in new home investment and weighing on consumer confidence.
GPU Access Boosts China’s AI Ambitions
- The H20 GPU resumption is a strategic win for China’s AI ambitions despite partial restrictions for sensitive users.
- China lacks sufficient domestic GPU capacity, so resumed imports materially support its broader AI ecosystem growth.