CGTN Europe spoke to Naeem Aslam, Chief Investment Officer at Zaye Capital Markets.
Category
🎵
MusicTranscript
00:00Neem Aslam is Chief Investment Officer at Zaire Capital Markets.
00:04Welcome to the programme.
00:05Well, it looks as if Asian markets opening in the red for a second day on tariffs.
00:12What's your assessment of where we are so far?
00:16Sure, thanks for having me as always.
00:18I think there is still further room to the downside when it comes to these particular
00:24markets, whether we are talking about Asian markets, European markets or the US markets.
00:29And I'm saying this despite the fact that we have seen a very, very healthy correction.
00:35In fact, some of the indices in these particular markets across these three regions, they have
00:43gone into very near enough to their bear market territory.
00:47But the fact is that this is a game that every single country leader is willing to play.
00:54It is a tit for tat game.
00:55And until and unless we see some sort of elasticity on either side, I don't see a
01:02bottom yet in the market.
01:04I think there is a further downside.
01:06Yes, weekends would be very important, any upcoming weekends, because this is when you're
01:12going to see a major headlines.
01:14So going into Monday, we could potentially see a huge gap to the upside or further gap
01:19to the downside, which only time will tell.
01:22But it is the elasticity of the relationship.
01:25Who's going to give up on in terms of the ego?
01:28And they're going to say, OK, here it is.
01:31Let's come to the table.
01:32Talk sense.
01:33Move forward.
01:35How freaked are investors, do you think?
01:38How unnerved are they?
01:41Well, I think from investment perspective, you are looking two different set of investors.
01:46Number one, investors who are looking at the markets and thinking about the valuations
01:51been so rich across the globe, not only in Asia or in Europe or in the United States.
01:58And I'm not specifically discussing any particular sector, especially the max seven or the tech
02:04sector, the AI boom, which was a very, very rich in terms of evaluation.
02:08So those pool of investors are looking at it and then rubbing their hands and thinking,
02:13this is a great opportunity because now markets have retraced more than 20 percent in terms
02:19of the Nasdaq, in terms of the Russell.
02:21We had more than we are nearly over 30 percent and over in China and in Hong Kong, it is
02:26even more worse.
02:28But then smart money, the other pool of investors sitting on the other side thinking, OK, if
02:33these tariffs are going to become a reality around those particular key dates, which are
02:38going to be kicking in next week, what does that mean in terms of production?
02:43If you are pushing companies to come to the United States, it is not going to happen overnight.
02:49Who's going to take the pain?
02:51At what cost are consumers ready?
02:55And what does that mean for the earning season?
02:58They are looking at these particular questions and the answer that they are looking at for
03:03these particular questions are not very optimistic.
03:05Naeem Aslam, thank you very much for joining us.
03:07Good to see you.