Bloomberg Daybreak: Asia Edition US-China Tee Up Trade Deal, BOJ Preview, South Korean President Lee Jae Myung
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Oct 27, 2025 
Minmin Lo, Bloomberg's China correspondent, breaks down the recent U.S.-China trade talks, highlighting a preliminary consensus on export controls and agricultural purchases. Takahide Kiyuchi, from Nomura Research Institute, warns of rising inflation risks tied to currency weakness, anticipating a steady BOJ policy despite pressures. South Korean President Lee Jae Myung discusses stalled $350 billion investment negotiations with the U.S., emphasizing the need for tailored agreements and addressing visa issues to boost economic cooperation.
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US-China Preliminary Trade Framework
- US and China reached a preliminary framework covering export controls, fentanyl, shipping levies, and agricultural purchases.
- The deal likely removes the 100% tariff threat but leaves existing tariffs and uncertainty over their reduction.
Tariff Relief May Be Partial
- A reduction on fentanyl-related measures could signal removal of 20% fentanyl tariffs and ease tensions.
- Even with thawing, China still faces effective tariffs about 40%, keeping export disadvantage.
BOJ Rate Path Shaped By Yen And Politics
- BOJ likely to hold this meeting but December is a probable timing for the first rate hike amid a weak yen.
- Political pressures and cost-of-living concerns may force policymakers to soften hawkish stances and raise rates.