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Markets Pricing in an Asymmetric Bet on G-20 Outcome

Markets Pricing in an Asymmetric Bet on G-20 Outcome

(Bloomberg) --

All eyes are on the Group of 20 nations meeting in Japan this weekend, with investors on the edge of their seats for news of progress in trade talks between the U.S. and China. News reports suggest that expectations are low. But what are markets signaling? Mark Hackett, chief of investment research at Nationwide Funds Group, joins Sarah Ponczek and Mike Regan on this week’s “What Goes Up’’ podcast to discuss.
 
“We’re sitting here with the market in general pricing in very high expectations that we get a deal with China and we get three Fed rate cuts,” he says. “The likelihood that both of those things happen together seems pretty optimistic. If you get rate cuts, maybe we don’t have as much urgency to get a China deal done. If we get a China deal done, the urgency for the Fed to cut becomes a little bit less.’’

Also joining the podcast is Bloomberg Markets Live blogger Ye Xie with insights on what China needs to get a trade deal done.

To listen to more from this podcast click here

Mentioned in this podcast:
A Scary View on What the G-20 Means for Stocks and a Calming One

To contact the editor responsible for this story: Topher Forhecz at tforhecz@bloomberg.net

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