Bloomberg Businessweek Tariffs Likely Hurt Global Equities' Margin Views
9 snips
Jan 21, 2025 
Gina Martin Adams, Bloomberg Intelligence's Chief Equity Strategist, discusses how potential Trump 2.0 tariffs could negatively impact global companies, particularly U.S. multinationals. Irwin Simon, CEO of Tilray Brands, shares insights on the cannabis industry's future under the Trump administration. Mark Gurman, Bloomberg's Tech Correspondent, highlights Meta's innovative strides in AI-integrated wearable tech. Finally, Chris McMahon, CEO of Aquinas Wealth Advisors, dives into the implications of expected Federal Reserve rate cuts on market dynamics.
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Tariff Impact on US Stocks
- Investors should be concerned about new tariffs' impact on US stocks, especially with the dollar rallying.
- Multinational stocks, leaders of the 2023-2024 S&P 500 earnings recovery, face currency headwinds and higher expectations for 2025.
Key Indicator: Operating Margins
- While there's precedent from the first Trump administration, current tariffs may be more widespread.
- The key indicator to watch is the operating margin forecast from analysts, as it signals market performance.
Tariffs and Multinational Companies
- Tariffs' impact varies; the 2018 tariffs targeted China, while the current ones target Mexico and Canada.
- Companies, often multinational, bear the cost, not economies exclusively, complicating market analysis.
