Welcome to our exchanges at Goldman Sachs Markets update for Friday, May 29th.

Each week we check in with a leader across the firm to get their quick take on what they're watching in the markets.

I'm Jake Stewart Global Head of Corporate Communications here at the firm.

And today's return guest is Michael Passel of our global markets division. We had Michael back on in February,

and things have certainly changed a little bit since then. Welcome back to the program, Michael.

Thanks for having me, Jake. So what's the top certain markets you're watching this week?

The escalation in US China tensions are front and center for our clients and our trading desk.

I won't go through the headlines here, but there's clearly been tensions in US pension

allocations in recent weeks, has been exchanged the listing fears there's been concerns over

trying to filling the phase one trade deal and this is obviously escalated to a point

where you know today over the last couple days the US State Department no longer

considers Hong Kong to have enough autonomy under Chinese rule.

And that's just as China passes the national security law, which is going to have some clear implications

for Hong Kong.

So tying this into markets, there's some pockets of weakness around, but we've seen our clients

generally compartmentalize the US-China trade risks or US-China risks so far.

There's still a glass-half-fall approach to generic risk asset pricing.

I would say that this week we've seen a

step change in focus from clients on the US China issue. A lot of concern that this

issue could unravel their performance year to date. We have a lot of clients looking at cross- asset

hedges either to protect themselves or to add Alpha. In terms of markets, there's a modest amount of

risk-prey-priced into China, but I think it's not enough not only to worry what we're seeing

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