Bloomberg Daybreak: Asia Edition Tariff War Woes Fuel Exodus From US Assets
Apr 11, 2025
Mark Cranfield, a Bloomberg Market Live strategist based in Singapore, and Patrick Kennedy, founding partner at AllSource Investment Management, dive into the impact of rising US tariffs on China, which have caused significant market turmoil. They discuss the sell-off in US stocks and bonds, the surge in gold and the euro, and the flight of investors seeking safer havens. With concerns about a global recession looming, they emphasize the need for cautious investment strategies and the volatility in Asian markets amid ongoing uncertainty.
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Tariff Uncertainty Impacts Markets
- The White House confirmed a 145% tariff on Chinese goods entering the U.S.
- All other trading partners currently face a 10% baseline tariff.
Currency Volatility and Dollar Weakness
- Currency volatility is high due to investors seeking havens like the euro and yen.
- The U.S. dollar is weakening amid expectations of Federal Reserve rate cuts.
Risk Management in Uncertain Times
- Reduce risk exposure as much as possible due to high market uncertainty.
- Expect erratic movements and prioritize minimizing potential losses.