Bloomberg Surveillance How Instability in France May Impact Markets
Dec 3, 2024
Jeff Kleintop, Chief Global Investment Strategist at Charles Schwab, discusses how France's political instability could reshape European economic conditions. He anticipates shifts in investment strategies for 2025, emphasizing the allure of European markets as U.S. and China face challenges. Heidi Crebo-Rediker, from the Council on Foreign Relations, analyzes the impact of the incoming Trump administration on U.S. foreign relations, particularly with allies and tariffs that could complicate international trade.
AI Snips
Chapters
Transcript
Episode notes
European Opportunities
- Jeff Kleintop favors European markets for 2025, expecting accelerating growth outside the U.S. and China.
- He anticipates economic and earnings rebounds in countries like France, despite current headlines.
Emerging Markets and Trump
- Emerging markets could be promising, depending on China's stimulus efforts.
- Kleintop notes that in 2017, Chinese stocks and emerging markets outperformed after Trump's initial win.
European Value vs. Value Trap
- European markets offer value but pose a value trap risk if tech continues to lead.
- Kleintop observes a shift towards financial sector leadership in Europe, which benefits from rate cuts.