Bloomberg Daybreak: Asia Edition US Opens Door to China Deal as Trade Spat Drags On
Oct 13, 2025
In this engaging discussion, Paul Dobson, Bloomberg's Executive Editor for Asia Markets, sheds light on the escalating U.S.-China trade tensions and the potential implications for the Asian markets. He delves into China's position and mutual vulnerabilities in these negotiations. Meanwhile, Frances Stacey from Scarlet Oak Financial shares insights on sustaining the U.S. bull market, highlighting key factors such as liquidity and the impact of mega-cap tech on market dynamics. Additionally, she warns of underlying credit risks that could pose challenges ahead.
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Posturing Before Potential Trump–Xi Meeting
- Both the US and China are publicly posturing to show leverage ahead of a potential Trump–Xi meeting.
- Markets expect a compromise or delay since major measures are timed for November after possible talks.
Mutual But Different Leverage
- China holds strategic advantages in rare earths, magnets, and EV battery supply chains.
- The US retains escalation options like steep tariffs, so leverage is complex and mutual.
Decoupling Will Be Slow And Partial
- Decoupling of supply chains and tech ecosystems is a long-term direction for both countries.
- Mutual dependence remains in areas like climate change, making full disentanglement slow and costly.