Bloomberg Daybreak: Asia Edition Cautious Open for APAC Markets; Election Day in South Korea
7 snips
Jun 3, 2025 Adam Coons, Chief Investment Officer at Winthrop Capital Management, discusses the cautious beginnings for Asian markets following a surge in US tech stocks. He highlights the implications of US-China trade tariffs that could influence inflation and investment strategies. With South Korea's presidential election underway, Coons examines the political turmoil, emphasizing the challenges facing the new leader amid a divided nation and an economy vulnerable to external pressures. Insight from M. Jae Moon adds depth to the conversation about the need for unity and effective recovery plans.
AI Snips
Chapters
Transcript
Episode notes
Tariffs Contract Manufacturing Sector
- Tariffs act as an economic contractor, causing manufacturing contraction due to rising costs and uncertainty.
- This contraction counters the intended economic boost from tariffs, indicating a complex impact on inflation and growth.
Stagflation Risks Loom
- Stagflation is a major concern as it traps the Fed between rising unemployment and climbing inflation.
- This scenario could hinder traditional monetary policy and deepen economic difficulties if tariffs and inflation persist.
Cautious on Long-Term Bonds
- Avoid extending duration to 30-year treasuries now; the market faces debt maturity pressures.
- However, long-duration bonds at 5% yield offer asymmetric risk and may be valuable over time.