This is The Takeaway from at present’s Morning Brief, which you’ll be able to enroll to obtain in your inbox each morning together with:
It wasn’t what was stated, however what wasn’t stated.
That’s what I’ve been telling the CEOs who’ve reached out following my chat with US Treasury Secretary Scott Bessent earlier this week (video above). I very a lot loved my 23-minute chat with the secretary, full-stop. I discovered so much in a brief interval and drastically appreciated his time.
He is level-headed and deeply understands market historical past and market plumbing — little doubt a by-product of his many years spent within the hedge fund trade. Of course, these are good traits to have as a Treasury secretary if issues go to hell in a handbasket (see the Great Financial Crisis).
But on the finish of the day, I got here away pondering the cloud of uncertainty hanging over markets on tariff coverage — a key market headwind — ought to stay in place within the close to time period. Consequently, any rallies in shares like we noticed after the latest electronics tariff exclusions ought to be handled as short-lived.
Read extra: The newest information and updates on Trump’s tariffs
In the middle of this uncertainty cloud is, naturally, China. The two superpowers appear light-years aside in calling some type of commerce truce.
When I requested the secretary if he had talked to his Chinese counterpart, that is what he replied:
“We did an introductory call a couple of months ago. We haven’t spoken since. I’m not sure who from PRC [People’s Republic of China] will be [here] next week — it’s a big week in Washington. It’s the International Monetary Fund World Bank Week. So I know that the People’s Republic will send someone from finance, probably the PBOC, People’s Bank of China governor. So they will be here. You know, I may bump into them. We don’t have anything scheduled,” Bessent stated.
Wow, stumble upon them in a hallway? That’s the place issues are at? Not nice.
Then there was this response as to whether tariff offers will probably be inked with as much as 130 international locations by the point the 90-day pause ends:
“Let’s set aside China. There are 15 large trading partners. We set aside China. There are 14, and we’re in rapid motion and setting up a process for the 14 largest trading partners, most of whom have very large deficits. So, in 90 days, are we going to have a complete doc, a formal legal document done and dusted? Not likely,” Bessent stated.
However, he did notice {that a} framework may very well be labored out inside the pause interval.
