
Abrdn: Boost China Exposure But Stay Tactical
Irene Goh, deputy global head of multi-asset & investment solutions and head of Hong Kong at abrdn, says the asset manager has been actively playing China in the past two years while waiting for signs of recovery in consumer confidence and earnings. She discusses investment strategy with David Ingles and Rebecca Choong Wilkins on "Bloomberg: The China Show." (Source: Bloomberg)

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Bloomberg
an hour ago
- Bloomberg
Innovation Happening at Infrastructure Level: Qiu
Lei Qiu, CIO of Thematic Innovation Equities at AllianceBernstein, says the pace of innovation at the infrastructure level is picking up and there will be various winners in the AI supply chain going forward. She speaks to Bloomberg's Caroline Hyde and Ed Ludlow on 'Bloomberg Tech.' (Source: Bloomberg)
Yahoo
an hour ago
- Yahoo
Wall Street Fears Hawkish Fed Will Trigger Stock Market Selloff
(Bloomberg) — Not much seems to faze the stock market these days even as risks abound, from war in the Middle East, to trade tensions, to slowing growth. But Wall Street's biggest fear arrives today when the Federal Reserve meeting ends and Chair Jerome Powell explains the central bank's outlook. Security Concerns Hit Some of the World's 'Most Livable Cities' How E-Scooters Conquered (Most of) Europe As Part of a $45 Billion Push, ICE Prepares for a Vast Expansion of Detention Space JFK AirTrain Cuts Fares 50% This Summer to Lure Riders Off Roads Taser-Maker Axon Triggers a NIMBY Backlash in its Hometown There's pretty much no expectation that the Fed will reduce interest rates at this meeting after holding steady in the past three instances. But between the so-called dot plot, which outlines where central bankers think the fed funds rate is headed, and Powell's press conference after the meeting, traders expect to have a much clearer idea of what they're thinking. Wall Street's hope is that the Fed see cuts coming in the fall, with swaps traders pricing roughly 56% odds of a reduction in September. The fear is that it doesn't — and that a hawkish tone from Powell will be the trigger that sends equities prices tumbling from near all-time highs. 'If Powell signals the Fed is going to keep playing the 'wait-and-see' game before cutting rates, the market will hate that and stocks will likely sell off,' said Dennis Dick, head of markets structure and a proprietary trader at Triple D Trading. 'His tone is crucial. Trade wars. Geopolitics. Growth. No one knows how all of this will play out. Any signals cuts are coming would ignite a rally.' It's been a wild 2025 for the stock market. The S&P 500 Index (^GSPC) is up 1.7% for the year and stands less than 3% from a record. It almost slammed into a bear market in April after President Donald Trump unveiled his sweeping global tariffs, but it immediately took off a week later when he delayed most of his levies. The S&P 500 has traded sideways for the last five weeks, rising 0.7% since May 20. Even the fighting between Israel and Iran hasn't really knocked the market off its pins, with the S&P 500 down just 1% since Israel launched its bombing campaign last Thursday, even as oil soars to its highest level since January. But at the same time, optimism on global trade, resilient inflation data and solid corporate earnings are already largely priced in, leaving little fuel to power stocks higher. 'If the conflict in the Middle East turns into a full-scale war leading to a lasting rise in oil prices, it's going to be a long slog for stocks this summer if inflation pressures pick up,' said Seth Merrill, chief investment officer at Crewe Advisors. He's betting that bond proxy shares like utilities and real estate will be more susceptible to swings today, given their sensitivity to the rates outlook. That's why investors will pore over the Summary of Economic Projections, the formal name of the dot plot, and carefully parse Powell's remarks. The central bank's announcement is scheduled at 2 p.m. in Washington, with Powell's press conference 30 minutes later. Wall Street is largely bracing for the Fed to take a hawkish stance. Bloomberg Intelligence chief US economist Anna Wong thinks the central bank 'won't flinch' because of policy uncertainty tied to the Trump administration's trade, tax and regulatory policies. Mark Cabana, head of US rates strategy at Bank of America (BAC), wrote in a note to clients Monday that he and his team see the Fed remaining 'comfortably in wait-and-see mode,' with just one rate cut planned for 2025. And Andrew Tyler, head of global market intelligence at JPMorgan Chase & Co., sees heightens potential for a pullback creating a buy-the dip moment. Other money managers like Jim Worden, chief investment officer at the Wealth Consulting Group, have argued for Powell to shift the focus back to the employment part of the Fed's dual mandate. Indeed, inflation pressures have improved after the Fed last cut rates in December, with US consumer prices rising in May by less than forecast for the fourth month in a row. But this comes at a time when other parts of the economy are showing signs of weakness in the aftermath of tariffs, including a plunge in May retail sales and reduced US services and manufacturing activity, along with slowing private payrolls growth. 'If Powell acknowledges the labor market is softening while inflation is cooling — that's a buy signal for stocks because it means he is open to rate cuts later this year,' Worden said. 'But if he pours cold water all over that idea, or even alludes to no cuts the rest of year, markets will be rattled. Traders will wonder 'What does he know that we don't? Does he expect inflation to pick in the second half of the year?'' That leaves options pros betting on a calmer than normal Fed day, with the S&P 500 projected to move 1% in either direction, according to data compiled by Piper Sandler & Co. That's the smallest implied swing ahead of a Fed day since January and just below the average realized move of 1.1% over the past 18 months. That said, Wall Street pros see an upside if the market falls on hawkish chatter. Triple D Trading's Dick is using any selloffs to pile into high-flying technology shares tied to the artificial-intelligence boom. While, the Wealth Consulting's Worden is looking to buy cheaper big tech shares like Broadcom Inc. (AVGO) and Marvell Technology Inc. (MRVL), although he'll wait until the dust settles if the market gets too volatile after the Fed chief's presser. Powell has repeatedly described the economy as 'solid.' But US job expansion moderated in May while private payrolls growth slowed. Yet the stock market has been blowing all of this off as economists and sell-slide strategists lower their odds that trade wars will rekindle what traders fear most: stagflation. The bottom line is at this point so much is unknown, from the Fed's rate path, to earnings growth, to how White House policy is implemented and affects Corporate America. So just about any interpretation of where we are has validity. Jamie Cox, managing partner at Harris Financial Group, is running counter to the consensus and betting that Powell may open the door to cutting rates as early as July. 'Markets have things priced all wrong thinking cuts will come even further out beyond September,' Cox argued, who plans to pile into US tech shares if the market sells off, or rallies on Wednesday. 'I'm hoping to hear him say 'inflation data has come in better-than-expected,' which to me signals they're not as fearful of stagflation.' Ken Griffin on Trump, Harvard and Why Novice Investors Won't Beat the Pros Mark Cuban Has Done Sports, Reality TV and Now Health Care. Why Not US President? How a Tiny Middleman Could Access Two-Factor Login Codes From Tech Giants American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software ©2025 Bloomberg L.P. By subscribing, you are agreeing to Yahoo's Terms and Privacy Policy Sign in to access your portfolio


Bloomberg
an hour ago
- Bloomberg
Trump ‘Playing With Fire' on Dollar Threatens Further Declines
Take the latest Bloomberg Pulse survey: Does the dollar regain some of its lost haven status amid escalating tensions in the Middle East? Tell us your thoughts. The dollar is having a shocker of a year, down more than 10% against the euro, pound and Swiss franc.