Bloomberg Daybreak: Asia Edition Trump: Willing to Lower China Tariffs, Australia PM Albanese Wins Re-Election
May 5, 2025
Kerry Craig, Global Market Strategist at J.P. Morgan Asset Management, shares insights on key developments shaping global markets. He discusses President Trump's openness to lowering tariffs on China as a way to boost trade, and how recent U.S. job data is lifting recession fears. The conversation also highlights Prime Minister Anthony Albanese's historic election win in Australia, marking a milestone for his party, and the potential impacts on the housing crisis and economic policies. Global investment opportunities amidst changing trade dynamics are also explored.
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Fed's Rate Outlook Amid Tariffs
- The Federal Reserve is likely to maintain rates for now but may start cutting later this year to support growth.
- Markets are cautiously optimistic, expecting less tariff escalation despite ongoing economic weakness ahead.
Global Investment Opportunities Shift
- International investment opportunities are shifting to Europe and Japan due to fiscal support and consumer strength.
- US markets remain strong but valuations are high, prompting a neutral stance towards US equities.
Australia's Market Post-Election
- Australia's market is attractive for its defensive sectors, income, and policy continuity after Albanese's re-election.
- However, earnings growth is weak and valuations are rising, so caution is advised.