Markets Soar on US-China Trade Truce

Bloomberg Surveillance

Bloomberg

Investing, Business News, Business, News

3.8 • 1.2K Ratings

🗓️ 12 May 2025

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF.
Bloomberg Surveillance hosted by Tom Keene & Paul SweeneyMay 12th, 2025
Featuring:
1) Geoffrey Yu, Senior Strategist: EMEA at BNY, talks about the market reaction to the US-China trade agreement and why the worst-case scenarios for markets are now a thing of the past. Investors rushed back into US assets, powering a 3% surge in S&P 500 futures, after China and the US agreed to cut tariffs and de-escalate their trade war.
2) Jordan Rochester, Head: FICC Macro Strategy EMEA at Mizuho, on the "Sell America" narrative getting squeezed as the US dollar strengthens. The dollar topped a one-month high on the US-China trade talks, while gold fell more than 3% and the 10-year Treasury yield climbed five basis points to 4.42%.
3) Lori Calvasina, Chief US Equity Strategist at RBC Capital Markets, joins for an extended discussion on equity relief post-US-China trade talks and whether she expects further choppiness. Every S&P 500 sector has advanced since President Trump's April 9 pause on his harshest tariffs, with gains led by information technology, industrials, and consumer discretionary segments.
4) Huw van Steenis, Vice Chair at Oliver Wyman, on how international investors will re-balance their portfolios in reaction to US-China trade talks. Market breadth indicators, such as the 40-Week Technique Indicator and the S&P 500's cumulative advance-decline line, are signaling optimism and strength in the market, with some strategists boosting their allocation to stocks.
5) Dan Ives, Global Head: Technology at Wedbush Securities, talks about why the result from Treasury Secretary Bessent's negotiations are the "best case scenario" for tech. Nvidia, Apple, Amazon, and Tesla took off in premarket trading following the announcement on trade.

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1:02.0	Begin strong with Jeffrey U, senior strategist, Emma BNY. Jeff Yu, thank you so much for joining us. Let me go right to the tariffs. Michael Brown in London has a wonderful tweet out. So the U.S. went from negligible tariffs on China to 10%, then 20, then 54, then 145, and now we're back to 30 and 90 days.
1:24.0	Jeff, is China advantaged by this round trip on tariffs? Well, round trip and detailing
1:31.4	how long, right? I'll just highlight simultaneously when that joint statement came out,
1:36.6	China actually put out a 2035 white paper on security and resilience. Okay. That round trip is going to last years and years and
1:45.6	years. Right. Or rather, it's not a round trip at all. So they're looking to perhaps get some
1:50.7	date on in the short term, paper things over, stability, but target restructuring of the economy
1:55.5	and the medium to longer term. So in terms of long term strategy for Beijing, this doesn't
1:59.0	change a thing. And for the export numbers, I'm going to say 48 hours ago showing buoyant exports out of China
2:05.6	to other nations, this delay in the trade war, this round trip by President Trump, doesn't
2:12.6	it give them more time to organize and disperse their supply chains to other nations?
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