Bloomberg Daybreak: Asia Edition US and China Strike Framework to Ease Trade Tensions
Jun 11, 2025
George Schultze, Founder and CEO of Schultze Asset Management, discusses the recent agreement between the US and China to ease trade tensions. He shares insights on how this preliminary deal aims to resolve key issues involving rare earth minerals. Schultze notes that while global stocks have rebounded, underlying economic concerns remain. The conversation also touches on hiring challenges and the shifting dynamics in private credit due to trade uncertainties, painting a complex picture of today's financial landscape.
AI Snips
Chapters
Transcript
Episode notes
US-China Trade War Thaw
- The U.S. and China agreed on a framework to de-escalate the trade war, reaffirming prior agreements like the Geneva Accord.
- This deal mainly signals a thaw and agreement to comply, not a broad resolution of tariffs or market access issues yet.
Markets Rebounding on Trade Optimism
- Market volatility eased as trade fears receded, with the VIX falling below 20 after a recovery from tariff-driven lows.
- Investors are optimistic about risk-taking due to expectations of future trade deal announcements and progress.
Fed's Balanced Approach Amid Trade War
- The Federal Reserve is cautiously accommodating, slowing quantitative tightening even as it hesitates to cut interest rates dramatically.
- The trade war clouding monetary policy may be lifting, easing pressures on the Fed's decisions.