Unhedged Not-so-bad news is the new good news
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May 13, 2025 Lower-than-expected inflation and evolving trade negotiations with China sparked optimism in the market. The hosts dive into whether Americans are genuinely feeling good or just relieved. They analyze the complex dynamics of tariffs and market responses, focusing on corporate strategies and central bank adaptations amid economic uncertainty. Adding a dash of humor, they discuss trading strategies alongside entertaining Pope memes while also shorting gold. A lively mix of serious economic insights and light-hearted banter keeps listeners engaged.
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Economic Challenges Motivate Tariffs
- Both the US and China have economic challenges that motivated tariff negotiations.
- China’s growth looks worse under alternative measures despite official GDP numbers.
Tariff Concessions Are Expected
- Tariffs remain high but may be part of Trump's pattern of backing down under pressure.
- Markets judge that further tariff concessions are likely to come.
Currency Volatility Reflects Capital Shifts
- Asian currencies surged as insurers adjusted to fewer dollar inflows.
- Currency volatility reflects changing global capital flows and risk perceptions.