CGTN Europe spoke to Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown
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00:00Susanna Streeter is Head of Money and Markets at Hargreaves Loungedown.
00:04Great to have you on the programme again, Susanna.
00:06So, are we at the bottom or is there worse to come?
00:10I think we're going to see continued volatility,
00:13but I think a lot is going to depend on 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 is going to have to swallow
00:30and led to fresh worries about global growth and a potential looming global recession.
00:36And that's why you've seen these steep falls.
00:38Also, the very fact that actually markets in Asia,
00:41it's the first time that they've been able to respond as well to China's retaliation
00:45against Trump'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 that there are signs.
01:01Yes, I was just about going to say, if there are signs that President Trump does decide to roll back
01:06or 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 for the time being.
01:17Well, I think you kind of answered my next question then,
01:19because, as you mentioned, those Chinese markets have been shut on Friday
01:22when selling was the heaviest in the U.S. and other centers.
01:25And what you're saying is that what we're seeing on the Asian markets,
01:28it's not just playing catch up. These losses are a long term thing.
01:33Yes, you saw, for example, the Hang Seng fall by 13 percent.
01:38It's partly playing catch up, but also, I think, in response to Trump's latest comments
01:44where he appeared to double down on his tariff policy
01:48despite growing voices from some of his previous supporters
01:54who are saying, look, 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
02:12because 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
02:26as a result of sending some goods to the United States over one year.
02:33I mean, it doesn't make economic sense.
02:35And that has come through loud and clear from 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 pep back today.
03:12So 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
03:21and 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 on the wine industry, for example.
03:42You've already seen the likes of luxury goods maker LVMH,
03:45obviously owns Moƫt, Hennessy.
03:47It shares down really sharply today.
03:49But there will be some hopes that there is room for negotiation.
03:53It's unnerving for investors and consumers alike.
03:55Susannah Streeter from Harwoods Lansdowne, always a pleasure to talk to you.