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.
19:13
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Quick takeaways
- Recent tariff hikes on Chinese goods have escalated financial market volatility, leading to a dramatic reevaluation of U.S. trade relationships and asset values.
- Chinese authorities are strategically managing the yuan's value while providing liquidity to bolster domestic equities amidst escalating external pressures and uncertainties.
Deep dives
Impact of Tariffs on U.S.-China Trade Relations
Recent tariff escalations, particularly a 145 percent levy on goods from China, have intensified economic uncertainties in U.S. markets. This situation has prompted American companies to reevaluate their trade flows from China, causing hesitance in pricing products and leading to potential shifts in currency values. As the Federal Reserve is expected to lower interest rates, the dollar's strength is recalibrating, impacting global currency dynamics. The volatility in the financial markets reflects growing concerns about the sustainability of U.S.-China trade relations and the overall health of the global economy.
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