Michelle Jamrisko discusses Biden's talk with Xi Jinping, Mark Cudmore explores global rates, and Michael Liang talks about APAC market outlook. They touch on US-China relations, Fed rate cuts, China's semiconductor strength, and more.
Market uncertainties arise from Fed rate cut discussions, US economic strength, and China's challenges for investors.
Deep dives
Biden-Xi Call Focuses on Key Issues
The recent call between President Biden and Chinese President Xi highlighted key topics such as tariffs, export controls, data security concerns including TikTok, election interference, and geopolitical issues like the South China Sea. While both sides discussed cooperation on combating fentanyl and drug trafficking, tensions persisted on various fronts like tech restrictions and geopolitical stances.
Fed Officials' Rate Cut Expectations
Despite some Fed officials anticipating three rate cuts in 2024, there is a disconnect with market expectations, which are fewer. The strong US economy raises doubts on the necessity of rate cuts, leading to concerns on Fed policy decisions that might not align with economic indicators.
China's Economic Challenges and Investment Strategy
Considering the challenges in China, including demographic shifts, property crises, and policy uncertainties, investors need a cautious approach. Assessing valuations of companies in China's evolving landscape, balancing between bullish and bearish views, and focusing on bottom-up fundamental analysis rather than short-term trading amidst market volatility can guide investment decisions.
Featuring: Michelle Jamrisko, Bloomberg White House Correspondent, joins us from Washington DC to discuss President Biden's conversation with China's President Xi Jinping.
Mark Cudmore, Bloomberg MLIV Macro Strategist joins us from Singapore to discuss global rates as Fed officials in the US discuss the path forward on interest rates.
Michael Liang, Chief Investment Officer at Foundation Asset Management, sits down with us in Hong Kong to discuss APAC market outlook.