Bloomberg Daybreak: Asia Edition

Stocks jumped and the dollar rose after President Donald Trump said he had no intention of firing Federal Reserve Chair Jerome Powell while optimism grew that trade tensions may be easing. Trump's comments on the Fed chief late Tuesday in Washington walk back opinions expressed earlier in the week that sparked concerns about the US central bank's independence. Progress in various trade talks also helped improve market sentiment after investors had broadly retreated from US assets this month following the announcement of century-high levies. We break down the themes driving volatility with Ecaterina Bigos, CIO for Asia ex-Japan Core Investments at AXA Investment Managers. Plus - US Treasury Secretary Scott Bessent told a closed-door investor summit Tuesday that the tariff standoff with China cannot be sustained by both sides and that the world's two largest economies will have to find ways to de-escalate. That de-escalation will come in the very near future, Bessent said during an event hosted by JPMorgan Chase & Co. in Washington, which wasn't open to the public or media. He characterized the current situation as essentially a trade embargo, according to people who attended the session. We talk tariffs and trade policy with Tom Bruce, Macro Investment Strategist at Tanglewood Total Wealth Management.See omnystudio.com/listener for privacy information.

Takeshi Niinami, Chairman and CEO of Suntory Holdings and Senior Economic Advisor to Japan's Prime Minister Ishiba, discusses the troubling implications of U.S. tariffs on international trade. He highlights Japan's firm stance in upcoming trade negotiations, stressing the need to protect national interests. Niinami voices concerns about market volatility and the effects of U.S. monetary policy on global markets. The conversation also touches on Japan's strategies in navigating trade challenges while fostering free trade initiatives in a shifting economic landscape.

Naomi Fink, Chief Global Strategist at Nikko Asset Management, and Alicia Garcia Herrero, Chief APAC Economist at Natixis, dive into the complexities of ongoing U.S. trade negotiations with Japan and South Korea, highlighting potential impacts on the global economy. They discuss China's pushback against U.S. tariffs and the implications for market volatility. Alicia also reflects on the importance of the Federal Reserve's independence, especially amidst political pressures, adding context to the current economic landscape.

Bloomberg Daybreak Weekend with Tom Busby takes a look at some of the stories we'll be tracking in the coming week. In the US – a look ahead to home sales data and Tesla earnings. In the UK – a look ahead to how companies across Europe and beyond are preparing to share their latest financial performances with the market. In Asia – a look ahead to how some Chinese companies are looking to skirt U.S President Donald Trump’s tariffs. See omnystudio.com/listener for privacy information.

In this discussion, Mary Nicola, a Bloomberg MLIV Strategist based in Singapore, and James Demmert, Founder and Chief Investment Officer at Main Street Research, dive into the dynamics of Japanese stocks amidst trade talks. They highlight how rising inflation in Japan signals a pivot from deflation, while trade negotiations between the US and EU boost automotive sectors. The impact of US monetary policy comments and tariffs on Japan's economy raises concerns about market volatility, inviting fresh investment opportunities in Asia despite economic uncertainty.

Jennifer Rie, a Senior Litigation Analyst, and Eric Balchunas, a Senior ETF Strategist, dive into some of today's hottest financial topics. They unpack President Trump's criticism of Fed Chair Powell and the potential shifts in Fed leadership. Eric sheds light on ETF inflows and market dynamics, while Jennifer discusses the government's antitrust battles with Meta and the implications for tech giants. They explore the complexities of tariffs, their economic impacts, and the ongoing scrutiny surrounding monopolistic practices in the industry.

Stephen Dyer, Head of the Asia Automotive Practice at AlixPartners, and Shams Afzal, Managing Director at Carnegie Investment Counsel, dive into the seismic effects of U.S. tariffs on the global auto industry. They discuss Ford's potential price hikes if tariff relief isn’t granted and how Chinese EV maker Xpeng is expanding despite trade tensions. The duo also addresses how tariffs could influence Federal Reserve policies and market stability, creating volatility in Wall Street as investors react to the changing landscape.

Ken Stern, President and CEO at Lido Advisors, discusses the recent dip in US equity markets amid growing trade tensions and new chip export restrictions to China. Colum Murphy, a China EcoGov reporter for Bloomberg News, reveals how Chinese TikTok influencers are promoting products directly to Americans, challenging U.S. tariffs with a focus on well-known brands. The conversation also touches on the need for careful investment strategies during these volatile times, emphasizing long-term planning and market trends.

Ross Mayfield, Investment Strategist at Baird, shares keen insights on the bond market's recent turbulence. He discusses Treasury Secretary Scott Bessent’s dismissal of claims regarding foreign nations selling off US Treasuries, particularly focusing on China’s strategic approach. The conversation also highlights how President Trump's trade policies have stirred market volatility, prompting a rally on Wall Street. Mayfield emphasizes the significance of adapting investment strategies in uncertain economic climates and the need for diversification amidst global challenges.

Chuck Cumello, President and CEO at Essex Financial Services, shares insights on market strategies amid fluctuating tech tariffs. Mark Matthews, Head of Asia Research at Julius Baer, discusses the implications of the U.S.-China trade war on Asian markets. They analyze the recent optimism as Asian stocks rise following a tariff pause on consumer electronics. The duo emphasizes the need for long-term investment strategies and diversification while navigating a volatile economic landscape, highlighting the potential in technology stocks and Japan's robust companies.