Monday was described as a "bloodbath" by some analysts after Asian and European shares plunged with investors fearing tariffs from Donald Trump could lead to inflation and a global recession.
Market turmoil looks set to continue but could negotiation ease the path for the EU?
Susannah Streeter of Hargreaves Lansdown talks to CGTN’s Juliet Mann.
Market turmoil looks set to continue but could negotiation ease the path for the EU?
Susannah Streeter of Hargreaves Lansdown talks to CGTN’s Juliet Mann.
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00:00Susanna Streeter is Head of Money and Markets at Hargreaves Lownsdown.
00:04Great to have you on the programme again Susanna.
00:06So are we at the bottom or is there worse to come?
00:11I think we're going to see continued volatility but I think a lot is going to depend
00:15on what we hear from President Trump in the coming days.
00:19What you heard was when he said that this tariff policy was a medicine
00:24that spread concerns about the bitter pill that the global economy
00:29is going to have to swallow and led to fresh worries about global growth
00:33and a potential looming global recession.
00:36And that's why you've seen these steep falls.
00:39Also the very fact that actually markets in Asia, it's the first time
00:42that they've been able to respond as well to China's retaliation against
00:46Trump's tariffs that were imposed late on Wednesday.
00:51And so all of this is added up to this kind of real climate of fear and worry
00:56emanating right the way through stock markets.
00:59You mentioned though there are signs.
01:01Yes, I was just about going to say if there are signs that President Trump
01:05does decide to roll back or at least a little bit on some of these tariffs
01:09you might see some of the losses pared back.
01:12You could see a bit of a turnaround but I think volatility is here to stay
01:16for the time being.
01:17Well I think you've kind of answered my next question then because as you mentioned
01:20those Chinese markets have been shut on Friday when selling was the heaviest
01:24in the U.S. and other centers.
01:26What you're saying is that what we're seeing on the Asian markets,
01:28it's not just playing catch-up.
01:30These losses are a long-term thing.
01:33Yes, you saw for example the Hang Seng fall by 13%.
01:38It's partly playing catch-up but also I think in response to Trump's
01:43latest comments where he appeared to double down on his tariff policy
01:48despite growing voices from some of his previous supporters who are saying,
01:55look we don't think this is the right strategy at all.
01:58Bill Ackman there saying it could lead to an economic nuclear winter.
02:02So he's not mincing his words there.
02:04There still will be hope that Trump will listen and actually start negotiating
02:09and that some of these more onerous tariffs will be rolled back
02:13because the calculations upon which these decisions were made
02:17have been questioned as being highly dubious.
02:20It's based on surpluses, tiny countries being slammed with really painful tariffs
02:27as a result of sending some goods to the United States over one year.
02:33I mean it doesn't make economic sense and that has come through loud and clear
02:37from so many parts of the world.
02:39I think talking about Trump's math is probably a conversation,
02:42a much longer conversation for another time.
02:44But let's look at the impact on European markets.
02:47What is it going to take to calm things down?
02:50It's not just about Trump moving, is it?
02:53It's about the reaction and the retaliation.
02:56Yes and actually what I think you have seen is some noises coming from Europe
03:01about the fact that they do not want to impose really steep tariffs.
03:07And so I think that's partly why you've seen some of the losses
03:11pep back today.
03:13So the DAX was initially down a lot more and it's gained back a tiny bit of ground
03:18amid hopes that you won't see a further escalation
03:22and that leaders will wait and see how all of this plays out.
03:27Because the danger is, for example, for the wine industry, for example,
03:32if extra tariffs are then put on U.S. goods,
03:36then Trump has vowed to retaliate and slam even further tariffs
03:40on the wine industry, for example.
03:42You've already seen the likes of luxury goods maker LVMH.
03:45He owns Moët, Hennessy.
03:47It shares down really sharply today.
03:50But there will be some hopes that there is room for negotiation.
03:53It's unnerving for investors and consumers alike.
03:56Susanna Streeter from Half-Wheat Lansdowne.
03:58Always a pleasure to talk to you.