Bloomberg Talks

Paul Krugman, a renowned economist and NY Times columnist, dives into the tangled web of tariffs and trade wars. He explains how current U.S. tariff policies echo past economic mistakes like the Smoot-Hawley Act. Krugman discusses the urgent need for clear trade policies in a shifting global landscape, emphasizing the impact on unemployment and recession risks. He also advocates for Congress to reclaim its authority over trade, pushing back against presidential dominance and highlighting the possible bipartisan support for reform.

Peter Oppenheimer, Chief Global Equity Strategist at Goldman Sachs, shares insights on the potential impact of tariffs on the U.S. economy and the risk of recession. He analyzes the tension between event-driven and cyclical bear markets, exploring how investor perceptions can shape market recovery. Oppenheimer delves into the fragility of market liquidity and profit margins, warning of implications for equity indices. He further discusses how U.S. tariff policies affect global markets and examines the shifting valuations of large-cap tech stocks, including the decline of Apple.

In this discussion, Elizabeth Warren, the Democratic Senator from Massachusetts, critiques President Trump's tariffs, labeling them as the 'dumbest trade war in the history of America.' She emphasizes how these tariffs threaten jobs and push the economy toward recession. Warren argues for a strategic approach to trade that fosters investment and job growth, while also calling for urgent bipartisan congressional action to reverse these damaging policies. The conversation highlights the accountability needed among government officials to mitigate economic fallout.

Larry Fink, CEO of BlackRock and a thought leader in long-term investing, discusses the unpredictable market, hinting at a potential 20% drop as a buy signal. He highlights the U.S.'s shifting role in global financial stability and the complexities of tariffs shaping economic growth. Fink also emphasizes the importance of viewing current market dips as opportunities, particularly in booming sectors like AI and infrastructure. His insights reveal the delicate balance between corporate strategies and evolving geopolitical landscapes.

Lori Calvasina, Chief US Equity Strategist at RBC Capital Markets, shares insights on recession pricing and its potential impact on the S&P 500. She argues that full recession pricing could position the index at 4,200. Calvasina discusses the interplay between credit markets and equity valuation, especially for small vs. large caps. She also addresses earnings risks amid challenging economic conditions and highlights value opportunities in Ford and small-cap stocks, emphasizing the significance of market signals during such fluctuations.

In this engaging discussion, Christoph Schweitzer, CEO of BCG, unpacks the evolving global agenda shaped by recent national elections. He reveals how trade and tax concerns are overshadowing environmental issues among CEOs. The conversation dives into the fluctuating focus on artificial intelligence, with many leaders grappling to match ambition with realized value. Schweitzer also addresses the critical need for investment and upskilling while navigating a polarized world, emphasizing the importance of empathy and purpose in leadership.

Howard Marks, Co-Chairman of Oaktree Capital Management, shares his expert insights on the current economic climate and market selloff. He analyzes the impact of recent tariffs, stressing a shift away from globalization and its potential effects on trade. Marks also discusses navigating inflation and asset valuation, reflecting on the challenges posed by a changing economic environment. Investors are encouraged to reassess strategies amid volatility and view price declines as opportunities, while considering the broader implications for the U.S. investment landscape.

The U.S. Labor Secretary discusses a surprisingly strong jobs report, highlighting a 228,000 increase in nonfarm payrolls. There's a tension between Wall Street's skepticism and a hopeful outlook based on direct worker experiences. Investment from companies is driving steady growth, even amidst global challenges. The importance of fair trade agreements and the need to support American workers is emphasized, particularly in light of rising tariffs impacting local economies. This conversation balances optimism with the realities faced by the labor market.

Former Boston Fed President Eric Rosengren dives into the effects of Trump-era tariffs on interest rates and inflation. He discusses how these trade policies create uncertainty in economic forecasts. The conversation also highlights the Fed's strategies for addressing rising inflation and unemployment challenges, revealing the delicate balance policymakers must maintain. Eric shares insights on navigating these complex economic waters alongside Bloomberg's Jonathan Ferro.

Stephen Phipson, CEO of Make UK, discusses the pressing challenges UK manufacturing faces due to a 10% US tariff. He emphasizes the need for a trade deal to protect key sectors like automotive and steel, which are critical for the UK economy. Phipson highlights the impressive efforts of the Labour government in navigating relations with the Trump administration. He also addresses the delicate balance the UK must maintain between its dealings with both the EU and the US amidst declining trade volumes.