Bloomberg Daybreak: Asia Edition US Trade Negotiations Continue This Week
Apr 21, 2025
Naomi Fink, Chief Global Strategist at Nikko Asset Management, and Alicia Garcia Herrero, Chief APAC Economist at Natixis, dive into the complexities of ongoing U.S. trade negotiations with Japan and South Korea, highlighting potential impacts on the global economy. They discuss China's pushback against U.S. tariffs and the implications for market volatility. Alicia also reflects on the importance of the Federal Reserve's independence, especially amidst political pressures, adding context to the current economic landscape.
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Episode notes
Uncertain US Trade Negotiations
- Trade negotiations between the US and Asian countries like Japan and South Korea may be prolonged and outcomes uncertain.
- Tariffs hurt US consumers most and could trigger either disinflation or stagflation, affecting recession risks.
Diversify Amid Market Uncertainty
- Diversify your portfolio to handle market uncertainty as there's no single safe asset now.
- Include domestic demand growth in surplus Asian economies and assets like gold for protection.
Long-Term Investing Strategy
- Long-term investors should avoid timing volatile markets and use dollar cost averaging.
- Focus on position and diversification to benefit from long-term compounding.