Welcome the thoughts on the market. I'm Michael Zesus, head the Public Policy Research and Municipal Strategy for Morgan Stanley. Along with my colleagues bringing you a variety of perspectives, I'll be talking about the intersection between US public policy

and financial markets. It's Wednesday, June 24th at 1130 a.m. in New York.

Key Trade Advisor to the President went on TV Monday night and said the phase one

trade deal with China was over. He quickly walked it back and the president

clarified by tweet within a couple hours that the trade deal is still on but

not before S&P market futures drop nearly 2%.

So what does this tell us?

Investors are worried about and ready to react to trade tensions with China.

But the solution probably isn't in looking to the election.

But in thinking and investing for a world where these tensions are the norm.

Why won't the election make this go away? Some investors think it will.

In our election investor survey, those identifying a Democratic win as a bullish outcome, did so because they thought it would come with reduced tariffs.

But we don't see that happening. Hawkishness towards China has now become bipartisan.

In our battleground survey, a majority of voters of all stripes expressed meaningful concern with the role of China and the economy

Maybe the tone in the approach towards China could change, but we don't think the policies will meaningfully

So we think it may be time to embrace something they call multi-polarity in the world of international

relations.

It's the idea that there's more than one norm globally when it comes to power, including the power

of the economy and commerce.

We see a trend in this direction with the U.S. and China increasingly drawing up trade barriers

between them and Europe increasingly caught in the middle wanting to preserve a free trade path.

Our new Morgan Stanley research Blue paper, Investing for a Multipolar World,

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